New Delhi : The Indian real estate investment trust (REIT) industry, valued at about $18 billion in August 2025, could surge to $25 billion in the next four years, marking a 38 per cent rise, according to a new report.
The REIT market in India has grown steadily since its first listing in 2019. Over the next four years, three more REITs will likely enter the market.
“Indian REITs offer attractive yields of 6-7 per cent, along with rental escalations and capital appreciation opportunities, making them highly competitive compared to global peers,” said Anarock Capital and Real Estate Developers’ Associations of India (CREDAI) in a joint report.
Strong fundamentals, regulatory confidence, and market depth continue to drive growth. Experts believe REITs will play a defining role in shaping the future of Indian real estate.
“Indian REITs may have joined the global party late, but they now lead the dance. Despite the late entry, the fundamentals remain strong. With distribution yields averaging 6-7 per cent, India outpaces mature markets such as the US and Singapore,” said Shobhit Agarwal, CEO of Anarock Capital.
Indian REITs also compete with fixed-income instruments by offering yields and the potential for capital appreciation. Agarwal added, “Our report takes a deep dive into this phenomenon.”
Despite the introduction of REIT guidelines in 2014 and the first listing only in 2019, Indian REITs cover just 20 per cent of institutional real estate—far behind the US (96 per cent), Singapore (55 per cent), and Japan (51 per cent).
The market remains concentrated in Grade A commercial office assets, which provide scale, transparency, and stable cash flows. However, diversification is on the horizon. Experts expect new opportunities in data centres and logistics, fueled by digital demand and e-commerce growth. Retail mall REITs may also emerge as consolidation continues.
As more asset classes become REITable, India’s penetration could climb to 25–30 per cent of institutional real estate by 2030, making it one of the fastest-growing REIT markets in the world.
“Over 60 per cent of India’s REIT market value currently rests with a handful of players in Grade A offices linked to IT and BFSI,” said Shekhar Patel, President of CREDAI. “The future holds far greater promise, as REITs expand into retail, logistics, housing, and new-age assets.”
Globally, industrial REITs are gaining momentum due to e-commerce, supply chain re-optimisation, and last-mile logistics, all of which ensure long-term rental growth. Data centre REITs, valued at $250 billion in 2024 and expected to double within seven years, are also expanding rapidly with cloud adoption and AI-driven workloads.
India mirrors this trend. In H1 2025, industrial and logistics leasing surged 60 per cent year-on-year, while warehousing absorption rose 30 per cent. Institutional investment in the sector tripled to $2.5 billion in 2024, highlighting the country’s growing potential.
Also Read : Wearable Technology in Healthcare: Key Benefits & Trends
