New Delhi, Sep 12 (IANS) – India’s real estate investment trust (REIT) market, valued at around $18 billion as of August 2025, is set to climb to $25 billion over the next four years, marking a 38% surge, according to a report by Anarock Capital and the Confederation of Real Estate Developers’ Associations of India (CREDAI).
Since the first REIT listing in 2019, the sector has gained steady traction. Three new REITs are expected in the coming years, driven by attractive yields of 6–7%, rental escalations, and opportunities for capital appreciation.
“Indian REITs are late to the party, but now lead the dance. Despite their relatively recent debut, distribution yields here outpace mature markets such as the US and Singapore,” said Shobhit Agarwal, CEO of Anarock Capital.
Currently, Indian REITs account for only 20% of institutional real estate, far behind the US (96%), Singapore (55%), and Japan (51%). The limited penetration stems from a concentration in Grade-A office assets. However, the report expects diversification into data centres, logistics, and retail REITs, aided by rising digital adoption, e-commerce growth, and consolidation in shopping malls.
By 2030, India’s REIT penetration could rise to 25–30% of institutional real estate, positioning the country among the fastest-growing REIT markets globally.
“Over 60% of today’s REIT value is concentrated among a few players, mainly in Grade-A offices tied to IT and BFSI. The future will see expansion into retail, logistics, housing, and new-age assets,” said Shekhar Patel, President of CREDAI.
The report also highlighted global momentum in industrial and data centre REITs. Data centre REITs alone were valued at $250 billion in 2024 and are expected to double within seven years, powered by cloud adoption and AI-driven infrastructure needs.
India is already mirroring this trend: industrial and logistics leasing surged 60% year-on-year in H1 2025, warehousing absorption rose 30%, and institutional investments tripled to $2.5 billion in 2024.
