India's REIT Market Poised to Double by 2030: A Closer Look

India's Real Estate Investment Trust (REIT) market is poised for significant growth, driven by its current under-penetration. According to a report by real estate services firm Vestian, REITs currently cover only 19% of India's listed real estate value, compared to the global average of 57%. This substantial gap indicates a massive potential for long-term growth.

The report projects that the market capitalisation of India's REITs will almost double from $18 billion in 2025 to $25 billion by 2030. Additionally, REIT-able office assets are expected to double from Rs 8.2 trillion in 2025 to Rs 16 trillion over the same period.

India currently has five listed REITs, with four focused on office assets and one in the retail segment. The office assets' listed portfolios span over 135 million sq ft, benefiting from predictable leasing demand from Global Capability Centres (GCCs), technology firms, and BFSI occupiers. This demand supports stable yields of 5–7%.

The report highlights that alongside the expansion of retail and alternative asset classes, India is well-positioned to emerge as one of the most dynamic REIT markets globally. Opportunities in industrial and warehousing REITs and Infrastructure Investment Trusts (InvITs) are estimated to expand from Rs 0.7 trillion to Rs 1.3 trillion by 2030. This growth mirrors global shifts where logistics and data centres are becoming core REIT subsectors.

Shrinivas Rao, FRICS, CEO of Vestian, noted, '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.'

India has over 1 billion sq ft of office stock, with nearly 500 million sq ft considered REIT-worthy and an additional 34 million sq ft in the pipeline. The retail REIT market is also expected to see significant growth, with two to three new retail REIT listings anticipated over the next three to five years. The retail REIT market could potentially reach $6–9 billion by 2030, according to industry estimates. Cities such as Indore, Coimbatore, Surat, Chandigarh, and Bhubaneswar are expected to play a key role in shaping this diversified pipeline.

The growth of India's REIT market is not only a sign of economic development but also a reflection of the country's ability to attract and retain long-term investments. As more investors recognize the potential of REITs in India, the market is likely to see increased liquidity, better governance, and a broader range of investment opportunities.