India's REIT Market Poised to Reach Rs 19.7 Lakh Crore by 2030
India's REIT (Real Estate Investment Trust) market is projected to soar to Rs 19.7 lakh crore by 2030, driven by high occupancy, favorable taxation, and broader sectoral inclusion, according to a recent report.
ReitReal EstateCommercial Real EstateUrbanizationInvestmentReal EstateNov 01, 2025
Private equity participation has significantly enhanced the transparency and institutional confidence in India’s commercial real estate sector. This participation has grown from $500 million in 2011 to multi-billion-dollar highs by 2019, paving the way for REIT expansion across the country.
As urbanization, technology, and progressive policy reforms continue to reshape the sector, India’s commercial real estate stands poised to unlock the next wave of opportunity across various asset classes. The report, jointly prepared by Knight Frank India and the Confederation of Indian Industry (CII), highlights the robust growth potential in this sector.
Retail consumption across organized formats is estimated to reach a value of Rs 8.8 lakh crore for FY 2025. This growth is primarily led by shopping centers, which are expected to contribute Rs 4.9 lakh crore, followed by high streets at Rs 3.8 lakh crore, and other new-age formats such as airport and transit retail.
The report underscores the importance of continued policy support and regulatory reforms to sustain this growth. It also emphasizes the need for increased investment in infrastructure and technology to enhance the operational efficiency of commercial real estate projects.
With a growing population and rising disposable incomes, the demand for retail spaces is expected to remain strong. This, coupled with the government’s push for urban development and smart cities, will further fuel the growth of the REIT market in India. The report concludes that the REIT market is well-positioned to attract both domestic and international investors, contributing significantly to the country’s economic development.
Frequently Asked Questions
What is a REIT?
A REIT, or Real Estate Investment Trust, is a company that owns, operates, or finances income-generating real estate. REITs allow individual investors to invest in large-scale, income-producing real estate.
What is the projected growth of India's REIT market?
India's REIT market is projected to reach Rs 19.7 lakh crore by 2030 from Rs 10.4 lakh crore in 2025, according to a recent report.
What factors are driving the growth of REITs in India?
The growth of REITs in India is driven by high occupancy rates, favorable taxation policies, and broader sectoral inclusion. Private equity participation and urbanization are also key factors.
What is the estimated retail consumption in organized formats for FY 2025?
Retail consumption across organized formats is estimated to reach Rs 8.8 lakh crore for FY 2025, led by shopping centers, high streets, and new-age formats like airport and transit retail.
What role does policy support play in the growth of the REIT market?
Policy support and regulatory reforms are crucial for sustaining the growth of the REIT market. Continued investment in infrastructure and technology is also essential for enhancing operational efficiency.
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