India's REIT Market Set to Soar to ₹19.7 Lakh Crore by 2030
India's real estate investment trust (REIT) market is projected to reach ₹19.7 lakh crore by 2030, driven by high occupancy, favorable taxation, and broader sectoral inclusion. The commercial real estate sector is poised for significant growth, with retail consumption and office market stock showing strong potential.
ReitReal EstateCommercial Real EstateInvestmentMarket GrowthReal EstateOct 31, 2025
As urbanisation, 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 asset classes. Retail consumption across organised formats is estimated at a value of ₹8.8 lakh crore for FY 2025, led by shopping centres (₹4.9 lakh crore), high streets (₹3.8 lakh crore), and other new-age formats such as airport and transit retail. This expansion reflects a clear shift toward experience-driven, consumer-centric destinations where shopping intersects with lifestyle and leisure, according to the report.
India’s office market stock surpasses 1 billion square feet, ranking as the fourth largest globally, the report states. India’s REITs have the potential to diversify beyond traditional asset classes like office, retail, and warehousing to include industrial parks, data centres, and hospitality. Listed REITs have delivered a stable average annual dividend yield of about 5.5 per cent, making them attractive income-generating vehicles.
By 2030, India’s REIT market (including office, retail, and warehousing sectors) is projected to reach ₹19.7 lakh crore. India currently has five listed REITs covering about 177 million sq ft of commercial and retail space, spanning operational, under-construction, and upcoming assets worth approximately ₹2.3 lakh crore with over 290,000 unitholders.
India’s commercial real estate (CRE) transformation is being led by businesses that are more global, technology-driven, and experience-focused than ever before. Consolidation in office demand, resilient retail growth, and the rapid expansion of digital infrastructure have fundamentally reshaped occupier behavior, said Shishir Baijal, Chairman and Managing Director, Knight Frank India. “Today, companies want efficient, green, future-ready spaces, and capital markets are rewarding that shift. As India heads toward a $7 trillion economy, CRE will play an essential role in powering productivity, attracting investment, and building next-generation urban centres,” he mentioned.
REIT investment allows individuals to buy shares in companies that own, operate, or finance income-producing real estate, similar to investing in mutual funds. Investors can earn money through dividends from rental income and potential capital appreciation, without the responsibilities of managing properties directly.
Frequently Asked Questions
What is a REIT?
A REIT (Real Estate Investment Trust) is a company that owns, operates, or finances income-producing real estate. It allows individuals to invest in a diversified portfolio of real estate assets without the need to manage properties directly.
What is the projected growth of India's REIT market by 2030?
India’s REIT market is projected to reach ₹19.7 lakh crore by 2030, up from ₹10.4 lakh crore in 2025, driven by high occupancy, favorable taxation, and broader sectoral inclusion.
What are the key factors driving the growth of India's commercial real estate sector?
The key factors driving the growth of India's commercial real estate sector include urbanisation, technological advancements, progressive policy reforms, and the rise in private equity participation.
What is the estimated value of retail consumption in FY 2025?
The estimated value of retail consumption in FY 2025 is ₹8.8 lakh crore, led by shopping centres, high streets, and new-age formats such as airport and transit retail.
What are the potential asset classes for REITs in India?
Potential asset classes for REITs in India include office spaces, retail, warehousing, industrial parks, data centres, and hospitality.
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