India's REIT Market Soars: ₹10.8 Lakh Crore Expansion by 2029
New Delhi: India’s Real Estate Investment Trust (REIT) market is on the brink of a monumental expansion, with projections indicating a growth of ₹10.8 lakh crore in gross asset value by 2029. According to a report from consultancy JLL, the office market is expected to account for approximately 65.3% of this growth.
India's REIT market has already achieved a landmark milestone in FY 2025, crossing the ₹1 trillion market capitalization threshold. The report highlights that the market capitalization of REITs rose from ₹264 billion in fiscal 2020 to ₹1.6 trillion as of September 30, 2025.
The sector has seen a significant transformation over the years, evolving from a single REIT managing 33 million sq ft in 2019 to five listed REITs collectively controlling 174 million sq ft of leasable office and retail space. Lata Pillai, Senior Managing Director & Head of Capital Markets, India, JLL, commented, “India's REIT sector has evolved from an emerging concept to a compelling investment vehicle. This remarkable 40% CAGR trajectory across 6 years reflects increasing investor confidence in commercial real estate as an institutional asset class.”
The unit holding pattern reveals a substantial increase in institutional holdings by mutual funds, insurance companies, pension funds, sovereign wealth funds, and NBFCs, indicating the market's increasing maturity. REITs’ share of Grade A office stock in India’s top seven cities grew to 15% by June 2025 from 4.2% in 2019. Strong leasing fundamentals are evident, with combined occupancy rates of office REITs reaching 91% as of September 2025 for all four office REITs.
The convergence of institutional capital, regulatory support, and a substantial asset pipeline positions India's REIT market for exponential growth over the next 5-7 years, making strategic positioning critical for market leadership. SEBI Chairman Tuhin Kanta Pandey recently stated that the markets regulator is actively studying whether Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) should be included in major market indices.
This development underscores the growing importance of REITs in India's financial landscape and highlights the potential for further regulatory enhancements to support their growth. As the market continues to mature, investors and stakeholders are optimistic about the future of REITs in India, anticipating sustained growth and increased institutional participation.
