India's REIT Market Surges to ₹2.5 Lakh Crore AUM with Q3 Distributions Crossing ₹2,450 Crore
To understand the recent momentum in the Indian property market, it is helpful to look at Real Estate Investment Trusts (REITs)—a financial instrument that functions like a mutual fund for property. Instead of requiring an individual to buy an entire office building or shopping mall, a REIT allows thousands of investors to pool their capital. This money is used to own and manage high-quality, rent-yielding real estate, with the law mandating that 90% of the net income be distributed back to the investors as regular payouts.
This structure has reached a significant milestone this week. According to the Indian REITs Association (IRA), the five publicly listed REITs in India—Brookfield India, Embassy Office Parks, Mindspace Business Parks, Nexus Select Trust, and the recently joined Knowledge Realty Trust—distributed over ₹2,450 crore to more than 3.8 lakh unitholders during the third quarter of FY26. This massive payout highlights a maturing market where retail and institutional investors are increasingly viewing commercial real estate as a reliable source of passive income.
The scale of these trusts is now substantial, collectively managing over 185 million square feet of Grade A office and retail space. To put the sector’s growth in perspective, these entities have cumulatively handed back more than ₹29,100 crore to their investors since they first began operations in India. As of this quarter, the total gross Assets Under Management (AUM) for the Indian REIT market has climbed past the ₹2.5 lakh crore mark, signaling deep investor confidence in the nation’s commercial infrastructure.
Beyond the numbers, the landscape is shifting due to new regulatory support. Industry leaders, including IRA Chairperson Alok Aggarwal, point toward upcoming government proposals that could allow banks to lend directly to REITs and the potential for dedicated REITs for Central Public Service Enterprises (CPSEs). Such moves are expected to unlock even more high-value government assets for public investment. For the average investor, this evolution means that “owning” a piece of India’s most premium business parks is no longer a privilege of the ultra-wealthy, but a transparent and accessible reality of the modern capital market.
The growth of the Indian REIT market is a testament to the country’s economic resilience and the increasing sophistication of its financial sector. As more investors recognize the potential of REITs as a stable and lucrative investment, the market is likely to continue its upward trajectory, further solidifying India’s position as a key player in the global real estate market.
