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India’s REIT market set for massive growth

NEW DELHI

India’s real estate investment trust (REIT) market is on track to nearly double in value, reaching ₹19.7 lakh crore by 2030 from ₹10.4 lakh crore in 2025, according to a new report by Knight Frank India and the Confederation of Indian Industry (CII). The growth will be driven by high occupancy levels, favourable tax policies, and the inclusion of new property segments.

The report highlighted that private equity participation in real estate has grown sharply—from $500 million in 2011 to multi-billion-dollar figures by 2019—enhancing transparency and investor confidence. This trend has helped REITs expand across India’s strong commercial property sector.

India’s organised retail sector is expected to reach ₹8.8 lakh crore in FY 2025, led by shopping centres, high streets, and new-age retail formats like airport and transit hubs. This shift shows how retail is becoming more experience-based, blending shopping with leisure and lifestyle.

India’s office space market has now crossed one billion square feet, ranking fourth globally. The country’s five listed REITs together cover about 177 million square feet of commercial and retail space worth around ₹2.3 lakh crore and have over 2.9 lakh unitholders.

REITs have also provided investors with an average annual dividend yield of 5.5 per cent. Experts say future growth will extend beyond offices to sectors such as warehousing, data centres, and hospitality. As India moves toward becoming a $7 trillion economy, the REIT market is expected to play a vital role in shaping modern urban and investment landscapes.

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