India's REIT Market Set to Double by 2030: Growth Potential and Key Sectors
India’s Real Estate Investment Trust (REIT) market is on the cusp of a significant transformation. According to a recent report from real estate services firm Vestian, the market capitalisation of REITs is projected to almost double from $18 billion in 2025 to $25 billion by 2030. This growth is driven by the current under-penetration of REITs, which cover only 19% of the country’s listed real estate value, compared to the global average of 57%.
The report highlights that REIT-able office assets are expected to double from Rs 8.2 trillion in 2025 to Rs 16 trillion by 2030. This substantial increase underscores the potential for long-term growth and the dynamic nature of the Indian REIT market. Shrinivas Rao, FRICS, CEO of Vestian, emphasized, “Alongside the expansion of retail and alternative asset classes, India is well-positioned to emerge as one of the most dynamic REIT markets globally.”
India currently has five listed REITs, with four focused on office assets and one in the retail segment. The office asset market is particularly robust, with listed portfolios spanning over 135 million square feet. Predictable leasing demand from Global Capability Centres (GCCs), technology firms, and BFSI occupiers supports stable yields of 5-7%. The country has over 1 billion square feet of office stock, of which nearly 500 million square feet is considered REIT-worthy, with an additional 34 million square feet in the pipeline.
The industrial and warehousing sectors are also poised for significant growth. REIT and InvIT opportunities in these sectors are estimated to expand from Rs 0.7 trillion to Rs 1.3 trillion by 2030, mirroring global trends where logistics and data centres form core REIT subsectors. Shrinivas Rao 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.”
The retail REIT market is also expected to see substantial growth, with the potential to reach $6-9 billion by 2030. Industry estimates suggest that two to three new retail REIT listings could occur over the next three to five years. Cities such as Indore, Coimbatore, Surat, Chandigarh, and Bhubaneswar are expected to play a key role in shaping this diversified pipeline.
The growth of the Indian REIT market is not only a testament to the country’s economic resilience but also a reflection of the increasing confidence in the real estate sector. As the market matures and diversifies, it is poised to attract more investors and contribute significantly to the overall economic landscape of India.
