India's REIT Market Poised to Reach $25 Billion by 2029
The Indian real estate investment trust (REIT) industry, currently valued at around $18 billion, is projected to grow by 38% to reach $25 billion in the next four years, according to a recent report.
ReitReal EstateMarket GrowthInvestmentIndiaReal EstateSep 12, 2025
The Indian REIT market has seen consistent growth since the first listing in 2019. According to a joint report by Anarock Capital and Real Estate Developers' Associations of India (CREDAI), the market is expected to see three more REITs over the next four years.
"Attractive yields of 6-7 per cent, coupled with rental escalations and capital appreciation opportunities, make Indian REITs highly competitive compared to global peers," the report states. The combination of regulatory confidence, market depth, and growth potential ensures that the country's REITs will play a defining role in shaping the future of Indian real estate.
Shobhit Agarwal, CEO of Anarock Capital, commented, "Indian REITs are late to the party, but now lead the dance. Despite its late entry compared to global peers, India has strong fundamentals. The distribution yields, currently averaging at 6-7 per cent, are well above many mature markets such as the US and Singapore, among others."
Average distribution yields of Indian REITs are competitive with fixed-income instruments but have the added potential for capital appreciation. "We take a deep dive into this phenomenon in the report," Agarwal added.
Despite REIT guidelines being introduced in 2014 and the first listing only in 2019, the Indian REIT market accounts for just 20 per cent of institutional real estate, far below the US (96 per cent) or even Asian peers like Singapore (55 per cent) and Japan (51 per cent). This limited penetration is largely because Indian REITs are so far concentrated in 'Grade A' commercial office assets, which offer scale, transparency, and stable cash flows.
As the market matures, diversification is expected through data centres and logistics REITs, supported by rising digital demand and e-commerce growth, while retail mall REITs may follow with ongoing consolidation, the report stated.
With more asset classes becoming REITable, India's penetration could potentially rise to 25–30 per cent of institutional real estate by 2030, positioning it as one of the fastest-growing REIT markets globally.
"Over 60 per cent of India's REIT market value today rests with a very small set of players, with a strong base in Grade A offices linked to IT and BFSI," said Shekhar Patel, President of CREDAI. The future, however, holds far wider promise. As India's cities grow, infrastructure strengthens, and the economy diversifies, REITs will expand into retail, logistics, housing, and new-age assets, Patel added.
The report highlighted that globally, industrial REITs are gaining significant momentum on the back of sustained e-commerce penetration, supply chain re-optimisation, and last-mile logistics demand, ensuring long-term rental growth and capital appreciation.
Data centre REITs, valued at $250 billion by 2024 and projected to double within seven years, are expanding rapidly due to surging cloud adoption, AI-driven workloads, and hyperscale infrastructure needs.
India is also well-positioned to mirror this trend, as reflected in a 60 per cent on-year surge in industrial and logistics leasing in H1 2025, a 30 per cent YoY rise in warehousing absorption, and a threefold increase in institutional investment to $2.5 billion in 2024, the report stated.
Frequently Asked Questions
What is the current market capitalisation of India's REIT industry?
The current market capitalisation of India's REIT industry is about $18 billion as of August 2025.
What is the projected growth of India's REIT market over the next four years?
India's REIT market is projected to grow by 38% to reach $25 billion in the next four years.
What are the key factors driving the growth of Indian REITs?
Key factors include attractive yields of 6-7%, rental escalations, capital appreciation opportunities, regulatory confidence, and market depth.
How does the distribution yield of Indian REITs compare to global markets?
The distribution yields of Indian REITs, currently averaging at 6-7%, are well above many mature markets such as the US and Singapore.
What new asset classes are expected to enter the Indian REIT market?
New asset classes expected to enter the Indian REIT market include data centres, logistics, and retail mall REITs.
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