India's REIT Market Poised for Significant Growth, Expected to Reach $25 Billion by 2030

India’s Real Estate Investment Trust (REIT) market is poised for significant growth, according to a new report by Vestian. The market, which remains under-penetrated compared to global peers, is expected to rise from about $18 billion in 2025 to $25 billion by 2030. This growth potential is driven by the maturation and diversification of the ecosystem.

As of Q3 2025, REITs account for just 19% of India’s listed real estate value, far below the global average of 57%. In mature markets like the US and Australia, more than 95% of listed real estate is held within REIT structures. India’s REIT market capitalisation represents only 0.4% of the overall stock market, highlighting the early stage of the segment.

India currently has five listed REITs — four focused on office assets and one in the retail segment. This concentration reflects the early stage of the market, as most other real estate asset classes are yet to reach the scale, stability, and institutional readiness required for REIT listings.

Office assets remain the backbone of India’s REIT landscape. Listed office REITs now cover more than 135 million square feet, supported by steady demand from global capability centres (GCCs), technology firms, and BFSI occupiers. These assets typically deliver stable yields of 5–7%. India has over 1 billion square feet of office stock, with nearly 500 million square feet considered REIT-ready. Around 34 million square feet is already part of existing REIT pipelines. Developers are increasingly looking to monetise this potential, with Bagmane Developers — backed by Blackstone — expected to launch a Rs 4,000 crore REIT IPO in early 2026.

Retail REITs have been slower to take shape, largely due to dependence on footfall trends, consumption cycles, and long-term asset management. At present, Nexus Select Trust is India’s only retail REIT, despite the country having around 89 million square feet of Grade A retail stock. Only about 10.6 million square feet of this space is currently under REITs, leaving a sizeable institutional opportunity. Vestian estimates that REIT-ready retail assets could grow from Rs 1.5 lakh crore in 2025 to Rs 2.4 lakh crore by 2030, with two to three new retail REIT listings likely over the next three to five years. The retail REIT market could reach $6-9 billion by 2030, supported by emerging consumption hubs such as Indore, Coimbatore, Surat, Chandigarh, and Bhubaneswar.

Beyond offices and retail, alternative asset classes such as warehousing, industrial parks, logistics facilities, and data centres are expected to be the next growth engines. Industrial and warehousing REIT and InvIT opportunities are projected to expand from Rs 0.7 lakh crore to Rs 1.3 lakh crore by 2030, broadly in line with global trends. “India’s REIT market holds huge upside potential, given its low penetration and the need to move beyond offices and selective retail,” said Shrinivas Rao. “As the market evolves, asset classes such as data centres, logistics, industrial parks, and warehousing offer scalable, yield-bearing opportunities aligned with mature global REIT markets.”

Residential real estate, while large in size, is not yet REIT-ready in India. Low rental yields of 2-3%, fragmented ownership, high tenant churn, and the absence of a unified rental housing policy continue to pose challenges. Emerging formats such as co-living, student housing, and senior living offer some promise, but residential REITs are still a longer-term prospect. Rao said innovation in rental formats and policy support could gradually improve viability, adding that Small and Medium REITs (SM-REITs) may help bridge gaps by aggregating smaller stabilised assets.

Regulatory initiatives such as SM-REITs — covering portfolios valued between Rs 50 crore and Rs 500 crore — are seen as an important step towards broadening participation. Platforms such as PropShare Platina (2024) and PropShare Titania (2025) are already operational, with more expected as smaller commercial assets move into formal, transparent structures.

Vestian expects India’s REIT market capitalisation to rise from about $18 billion in 2025 to $25 billion by 2030. With REIT-able office assets projected to double in value over the same period, alongside growing retail and alternative asset pipelines, India is positioned to emerge as one of the fastest-growing REIT markets globally. The next phase, the report notes, will be driven by diversification, scale, and policy coherence — factors that could transform India’s REIT platform into a broad, multi-sector investment universe.