India's REIT Market Poised to Reach ₹19.7 Trillion by 2030: Knight Frank Report

The commercial real estate (CRE) sector in India is positioned at a critical juncture, according to a recent report by Knight Frank India. The built potential of the sector is poised to drive significant growth, with India's REIT market projected to reach ₹19.7 trillion by 2030. This growth is fueled by high occupancy rates, favorable taxation policies, and the inclusion of a broader range of asset classes.

Retail consumption across organized formats is estimated to reach ₹8.8 trillion by FY 2025. This includes shopping centers contributing ₹4.9 trillion, high streets adding ₹3.8 trillion, and new-age formats such as airport and transit retail. The expansion reflects a shift toward experience-driven, consumer-centric destinations where shopping is integrated with lifestyle and leisure.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, highlighted the transformation in India’s CRE sector. “India’s CRE transformation is being led by businesses that are more global, technology-driven, and experience-focused than ever before,” said Baijal. “Consolidation in office demand, resilient retail growth, and the rapid expansion of digital infrastructure have fundamentally reshaped occupier behavior.” He added, “As India heads toward a $7 trillion economy, CRE will play an essential role in powering productivity, attracting investment, and building next-generation urban centers.”

India’s REITs have the potential to diversify beyond traditional asset classes like office, retail, and warehousing to include industrial parks, data centers, and hospitality. Listed REITs have provided a stable average annual dividend yield of about 5.5%, making them attractive income-generating options. By 2030, India’s REIT market, covering office, retail, and warehousing sectors, is expected to reach ₹19.7 trillion. Currently, India has five listed REITs covering around 177 million square feet of commercial and retail space, comprising operational, under-construction, and upcoming assets worth approximately ₹2.3 trillion, with over 290,000 unitholders.

India’s office REITs account for just 15.3% of the total office stock across the top eight cities, indicating strong potential for institutional growth. Retail REITs are emerging as a new frontier for India’s real estate market, driven by a robust revival in organized retail. Warehousing has become one of the most promising future avenues for REITs in India, fueled by e-commerce and third-party logistics (3PL) growth, with leasing activity reaching 32.1 million square feet in H1 2025.

Neel Raheja, Chair of the CII National Committee on Real Estate & Housing and Group President of K Raheja Corp, emphasized the importance of the partnership between CII and Knight Frank. “The partnership between CII and Knight Frank underscores a shared commitment to advancing India’s built environment,” said Raheja. “As commercial real estate matures, it will play a pivotal role in shaping investment flows, employment, and urban transformation. The sector’s progress reflects India’s broader economic journey—where potential is abundant, and the time to seize opportunity is now.”