REIT market poised for five-fold expansion: Rs 10.8 trillion growth opportunity in office, retail; top 7 cities to drive growth
“The REIT sector [is] positioned for an additional Rs 10.8 trillion ($122–125 billion) expansion opportunity across office and retail sectors in just India’s top seven cities by 2029,” the report said, as cited by ET.
It further noted that office properties alone are expected to drive over 65% of this projected growth, highlighting the increasing institutionalisation of the sector.India’s REIT market has already crossed a significant milestone, surpassing Rs 1 trillion in market capitalisation in FY25, just six years after the first listing.
Market value has surged from Rs 26,400 crore in FY20 to Rs 1.6 trillion as of September 2025, marking a six-fold increase.
Since 2019, the total commercial space managed by listed REITs has expanded from 33 million sq ft to 174 million sq ft across five REITs, reflecting the deepening of India’s commercial real estate market.
Current occupancy in office REITs remains high at 91%.The report also highlighted consistent growth in Net Operating Income (NOI) across all listed REITs, despite challenges in the post-pandemic environment.
Distribution yields stayed steady at 6–7% through FY25 and into the first half of FY26.
Meanwhile, the share of REITs in Grade A office stock across India’s top seven cities has climbed from 4.2% in 2019 to about 15% by June 2025, reflecting rapid institutionalisation.A significant boost for the industry came when Sebi reclassified REITs as equity instruments in September 2025, facilitating index inclusion and allowing broader participation from mutual funds.Looking ahead, JLL’s chief economist Dr Samantak Das said, “Looking forward, we anticipate a potential 5-fold market expansion in the next 4 years from the current GAV of Rs 2.1 trillion, with emerging asset classes also likely to create an increasingly diversified and accessible REIT ecosystem that appeals to a broader spectrum of investors,” as quoted by ET.He added that India’s REIT ecosystem could experience a five-fold increase in the next four years, driven by investment-grade office assets valued at $66–68 billion and retail opportunities worth $32–33 billion across the top seven cities.With the combined Gross Asset Value (GAV) of REITs at Rs 2.1 trillion, the report concludes that India’s REIT market is entering a “multi-year growth cycle” supported by institutional capital, regulatory reforms, and an expanding pipeline of assets.
