India's REIT Market Set to Soar to Rs 19.7 Lakh Crore by 2030
India's REIT (Real Estate Investment Trust) market is projected to grow from Rs 10.4 lakh crore in 2025 to Rs 19.7 lakh crore by 2030, driven by high occupancy, favorable taxation, and broader sectoral inclusion.
ReitReal EstateCommercial Real EstateIndiaInvestmentReal EstateOct 31, 2025
Private equity participation, rising from $500 million in 2011 to multi-billion-dollar highs by 2019, has enhanced transparency, deepened institutional confidence, and paved the way for REIT expansion across India’s thriving commercial real estate landscape.
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, according to the report by Knight Frank India in collaboration with the Confederation of Indian Industry (CII).
Retail consumption across the organised formats is estimated at a value of Rs 8.8 lakh crore for FY 2025. Led by shopping centres (Rs 4.9 lakh crore), high streets (Rs 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, it states. India’s REITs have the potential to diversify beyond traditional asset classes like office, retail, and warehousing, to 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, the report states.
By 2030, India’s REIT market (including office, retail, and warehousing sectors) is projected to reach Rs 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 Rs 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 behaviour, according to Shishir Baijal, Chairman and Managing Director of 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 properties without directly managing them.
What is the projected growth of India's REIT market by 2030?
India's REIT market is projected to grow from Rs 10.4 lakh crore in 2025 to Rs 19.7 lakh crore by 2030.
What factors are driving the growth of REITs in India?
The growth of REITs in India is driven by high occupancy, favorable taxation, broader sectoral inclusion, and enhanced transparency from private equity participation.
What are the potential asset classes for REITs in India?
REITs in India have the potential to diversify beyond traditional asset classes like office, retail, and warehousing to include industrial parks, data centres, and hospitality.
What are the benefits of investing in REITs?
Investing in REITs allows individuals to earn money through dividends from rental income and potential capital appreciation, without the responsibilities of managing properties directly.
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