India’s Real Estate Investment Trust (REIT) market is on the brink of substantial expansion, driven by its current low coverage of only 19% of the country’s listed real estate value, as per a report by real estate services firm Vestian. The market capitalization is anticipated to nearly double from $18 billion in 2025 to $25 billion by 2030, with REIT-able office assets expected to double from Rs 8.2 trillion in 2025 to Rs 16 trillion. This growth potential is attributed to the significant under-penetration in India compared to the global average of 57% for listed real estate value in REITs.
The report underscores the immense scope for long-term growth in India’s REIT market, especially with the expansion of retail and alternative asset classes. It positions India favorably to become one of the most vibrant REIT markets globally. The opportunities in industrial and warehousing REITs and Infrastructure Investment Trusts (InvITs) are projected to grow from Rs 0.7 trillion to Rs 1.3 trillion by 2030, aligning with global trends where logistics and data centers are key REIT subsectors.
Currently, India boasts five listed REITs, with four focusing on office assets and one in the retail segment. As the market evolves, asset classes like data centers, logistics, industrial parks, and warehousing present scalable, yield-bearing opportunities that resonate with established global REIT markets, according to Shrinivas Rao, FRICS, CEO of Vestian. The office assets’ listed portfolios cover over 135 million sq ft, benefiting from steady leasing demand from Global Capability Centers (GCCs), technology firms, and BFSI occupiers, supporting stable yields ranging from 5% to 7%.
India’s office stock exceeds 1 billion sq ft, of which nearly 500 million sq ft is deemed REIT-worthy, with an additional 34 million sq ft in the pipeline, as per the report. Industry estimates suggest the potential listing of two to three new retail REITs over the next three to five years, with the retail REIT market expected to reach $6–9 billion by 2030. Cities like Indore, Coimbatore, Surat, Chandigarh, and Bhubaneswar are anticipated to play pivotal roles in shaping this diverse pipeline of retail REITs.
