Bengaluru Commands Over 63% of India's Listed REIT Stock, Report Reveals
According to a comprehensive report jointly published by Credai and Anarock, Bengaluru emerges as the undisputed leader in India's Real Estate Investment Trust (REIT) landscape, holding a commanding 63.6% share of the nation's listed REIT stock. This significant dominance highlights the city's pivotal role in the institutional real estate investment sector. Following Bengaluru, Hyderabad secures the second position with a substantial 30.6% share, while India's financial capital, Mumbai, accounts for 29.4% of the listed REIT stock. This distribution underscores the concentrated yet competitive nature of India's burgeoning REIT market across key metropolitan hubs.
Attractive Yields and Growth Prospects Fuel REIT Competitiveness
The report, titled Indian REITs: A Gateway to Institutional Real Estate, emphasizes that Indian REITs remain highly competitive on the global stage, supported by several compelling factors. These include attractive yields ranging between 6% and 7%, which provide investors with steady income streams. Furthermore, consistent rental escalations and the potential for significant capital appreciation enhance the investment appeal. As India's urban centers continue to expand, infrastructure improves, and the economy diversifies, the REIT market is poised for substantial broadening beyond its traditional focus on office assets.
Market Evolution: Expansion into New Asset Classes
The evolution of India's REIT market is expected to unlock new opportunities for investors by diversifying into various asset classes. The report projects a shift into retail properties, logistics and warehousing facilities, housing segments, and new-age asset categories such as data centers. This diversification is anticipated to reinforce India's position as one of the most dynamic and rapidly growing REIT markets globally. With a wider array of assets becoming eligible for REIT structures, market penetration could surge to 25–30% of institutional real estate by 2030. This growth trajectory positions India among the fastest-growing REIT markets worldwide, offering substantial potential for both domestic and international investors.
Global Trends and India's Readiness to Capitalize
Globally, industrial REITs are gaining significant momentum, driven by sustained e-commerce growth, supply chain re-optimization, and increasing demand for last-mile logistics solutions. These factors support long-term rental growth and capital appreciation in the sector. Additionally, data center REITs, valued at approximately $250 billion in 2024, are projected to double in size over the next seven years. This expansion is fueled by widespread cloud adoption, AI-driven workloads, and growing requirements for hyperscale infrastructure.
India is exceptionally well-positioned to replicate this global momentum. The report highlights that industrial and logistics leasing surged by 60% year-on-year during the first half of 2025, while warehousing absorption increased by 30%. Institutional investment in this segment also tripled, reaching $2.5 billion in 2024. India's favorable demographics, rapid urbanization, and steady GDP growth further strengthen its appeal for institutional capital, creating a robust foundation for REIT market expansion.
Regulatory Confidence and Future Outlook
The combination of regulatory confidence, deepening market liquidity, and immense growth potential positions REITs to play a pivotal role in shaping the future of India's real estate landscape. As the sector expands into logistics, warehousing, retail, and data centers, REITs are set to become a cornerstone of institutional investment strategies. The report concludes that this evolution will not only unlock new opportunities for investors but also solidify India's status as a leading and dynamic player in the global REIT arena, driven by innovation, diversification, and sustained economic growth.
