The Future of Retail REITs in India: A ₹60,000–₹80,000 Crore Market by 2030
The Indian retail Real Estate Investment Trust (REIT) market is poised to grow significantly, reaching between ₹60,000 and ₹80,000 crore by 2030. This growth is driven by the consolidation of quality retail assets, steady consumer spending, and rising urban incomes.
ReitsRetail Real EstateIndian MarketInvestmentMall DevelopmentReal EstateOct 16, 2025
The research estimates that the Indian retail REIT market can become a ₹60,000 to ₹80,000 crore market by 2030, comprising roughly 30-40% of India’s overall REIT market. The overall REITs market is expected to touch USD 25 billion (₹2 lakh crore) by 2030.
What are REITs?
In simple terms, REITs are companies that own and operate income-generating real estate properties like malls and office buildings. They are structured as mutual funds, which allows individuals to invest in large-scale properties without having to buy them directly. Like mutual funds, REITs pool money from many investors and trade on stock exchanges, offering liquidity and easy entry and exit for investors compared to physical real estate. REITs are also regulated as per rules set by the Securities and Exchange Board of India (SEBI).
Who May Invest?
Investors interested in income-generating real estate may explore investing in listed REITs. However, one should carefully examine the REIT and make investment decisions only if it suits their financial goals and risk profile.
Driving Factors Behind Retail REITs
The shift in the REIT segment is driven by the consolidation of quality retail assets, steady consumer spending, and rising urban incomes. At present, Nexus Select Trust is the only retail-centric REIT in India out of the five listed REITs.
However, with Grade A malls now maturing into stable, income-generating assets, 2-3 retail REITs are expected to launch over the next 3-5 years. Our estimate of the Indian retail REITs' potential to become a ₹60,000 to ₹80,000 crore market in the next five years assumes only partial listings of various institutional portfolios, according to Anuj Kejriwal, CEO & MD, ANAROCK Retail.
Retail REITs Are Catching Up with Major Markets
The report suggests that the vital new entry of retail REITs into India's REIT universe will mirror the path of mature economies, where retail REITs form 15% to 25% of the total REIT market capitalisation.
Current Retail Hotspots
Tier-II cities such as Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh are witnessing the entry of institutional players for the first time, with mall developers like Phoenix Mills, Prestige Estates, and Nexus Malls expanding aggressively in these high-income, consumption-driven clusters. The report states that new projects averaging 1-1.2 million sq. ft. are being planned, with entertainment, F&B, and lifestyle retail accounting for nearly half of new mall space.
151% Growth in a Year
According to ANAROCK Retail’s RELEAP H1 2025 report, the first half of the current year saw 2.8 million sq. ft. of mall space deployed across the top seven cities, which is 155% more than in 2024, when 1.1 million sq. ft. of supply was recorded. The net absorption in malls was approximately 2 million sq. ft., almost 31% more than the previous year. The absorption was predominantly driven by the apparel and F&B segments, which accounted for nearly 55% of the total absorption.
Key Players
| Company | Malls Owned | Leasable Area (Mn sq. ft.) | Key Cities |
|-----------------------|-------------|-----------------------------|------------------------------------------------|
| Nexus Malls (Blackstone) | 19 | ~10 | Mumbai, Pune, Bengaluru (Total 14 cities) |
| Phoenix Mills | 12 | ~11 | Mumbai, Pune, Bengaluru, Kolkata (Total 8 cities) |
| DLF (Including DCCDL) | 8 | ~4 | Delhi-NCR |
| K Raheja | 5 | ~3 | MMR (3 cities) |
| Pacific | 9 | ~3 | NCR (2 cities) |
| Lakeshore | 5 | ~3 | MMR, NCR (5 cities) |
High Street Rentals Rising While Malls Are Stagnating
Kejriwal noted that across major cities, high streets are showing consistent rental appreciation, reflecting sustained demand for prime retail locations with high footfall and visibility characteristics. In contrast, mall rentals have largely remained stagnant in most cities, indicating a more cautious approach from retailers towards enclosed retail formats amid evolving market dynamics.
Top Predictions for the Next Five Years
ANAROCK Research has made the following predictions about REITs for the next five years:
- Top 5 mall owners will control 60% of the overall organised stock.
- New retail REITs will institutionalise the market further.
- A wave of mixed-use redevelopment, with older malls repurposed into integrated lifestyle districts.
“Retail is no longer just an afterthought in Indian real estate portfolios. It is now edging closer to centre-stage, under the spotlight as a resilient, high-yield asset class which is finally ready for institutional scale and public markets,” said Kejriwal.
Frequently Asked Questions
What are REITs?
REITs (Real Estate Investment Trusts) are companies that own and operate income-generating real estate properties like malls and office buildings. They are structured as mutual funds, allowing individuals to invest in large-scale properties without direct ownership.
What is the estimated growth of the Indian retail REIT market by 2030?
The Indian retail REIT market is expected to grow to between ₹60,000 and ₹80,000 crore by 2030, comprising roughly 30-40% of India’s overall REIT market.
What are the key driving factors behind the growth of retail REITs in India?
The growth of retail REITs in India is driven by the consolidation of quality retail assets, steady consumer spending, and rising urban incomes.
Which cities are seeing significant retail development?
Tier-II cities such as Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh are witnessing the entry of institutional players, with mall developers expanding aggressively in these high-income, consumption-driven clusters.
What are the predictions for the next five years in the retail REIT market?
ANAROCK Research predicts that top 5 mall owners will control 60% of the overall organised stock, new retail REITs will institutionalise the market further, and there will be a wave of mixed-use redevelopment, with older malls repurposed into integrated lifestyle districts.
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