India's REIT Market Poised for Explosive Growth: $25 Billion Target by 2030
India's Real Estate Investment Trust (REIT) market is on a remarkable growth trajectory, with market capitalisation projected to rise from $18 billion in 2025 to an impressive $25 billion by 2030. This substantial expansion is being fueled by a sharp increase in investable assets across multiple sectors, according to a comprehensive report by Vestian. The report highlights that India is positioned to emerge as one of the most dynamic REIT markets globally, driven by foundational frameworks that are now firmly established.
Office Assets Lead the Charge with Doubling Projections
The office segment continues to dominate India's REIT landscape, with REIT-able office stock alone expected to double from ₹8.2 trillion in 2025 to a staggering ₹16 trillion by 2030. This remarkable growth is supported by predictable leasing demand from Global Capability Centres (GCCs), technology firms, and BFSI occupiers, which collectively sustain stable yields of 5–7%. Currently, listed office REIT portfolios span over 135 million square feet, anchoring the market's expansion.
Simultaneously, retail and alternative asset classes are also set to scale up significantly, though at a different pace. Retail REITs have been slower to develop due to their dependence on footfall dynamics, consumption trends, and complex tenant management requirements. Currently, Nexus Select Trust stands as India's only retail REIT, despite the country boasting over 89 million square feet of Grade A retail stock.
Current Market Structure and Global Comparisons
India currently has five listed REITs, with four focusing exclusively on office assets and one dedicated to the retail segment. This concentration reflects the early stage of the ecosystem, as most other real estate asset classes have yet to achieve the scale, maturity, and institutional structure necessary for public REIT listings.
When compared globally, India's REIT market remains at a nascent stage. REITs account for only 19% of the country's listed real estate value, significantly below the global average of 57%. This gap highlights India's relative under-penetration but simultaneously signals substantial headroom for long-term growth as the market matures and diversifies.
Globally, REIT ecosystems are far more diversified. Markets such as the United States, Australia, Singapore, Japan, and the United Kingdom host multiple REIT categories spanning:
- Residential properties
- Healthcare facilities
- Logistics and warehousing
- Self-storage units
- Data centers
- Mortgage-backed platforms
In mature markets like the United States and Australia, over 95% of listed real estate value is held within REITs, underscoring their depth and sophistication. In contrast, India's REIT market capitalization represents just 0.4% of the total stock market, reinforcing its early-stage position while highlighting the immense scale of untapped opportunity.
Evolution of India's REIT Ecosystem
Although REIT regulations were notified in 2014, India's first REIT listing occurred only in 2019. Over the past six years, the sector has experienced rapid growth, expanding from ₹264 billion in FY20 to ₹1.6 trillion by Q2 FY26. However, challenges remain, particularly regarding the availability of stabilised, income-generating assets. A significant portion of commercial stock is either under construction or held in fragmented ownership structures, limiting immediate REIT potential.
Residential REITs: Challenges and Future Prospects
Residential real estate remains on the threshold of REIT inclusion but faces substantial structural challenges. Low rental yields of 2–3%, fragmented ownership patterns, high tenant churn rates, and the absence of large institutional rental portfolios continue to limit viability. Additionally, India lacks a unified rental housing policy, which serves as a critical enabler in mature REIT markets such as the United States, Japan, and Singapore.
Despite these constraints, emerging formats like co-living spaces, student housing, and senior living facilities offer promising avenues for future development. While residential REITs remain a longer-term prospect, they represent significant potential as the market evolves.
Catalysts for Future Growth
The next phase of India's REIT growth will be driven by three key catalysts:
- Greater diversification across asset classes beyond office and retail
- Increased scale through larger portfolios and institutional participation
- Improved policy coherence to create a more supportive regulatory environment
These factors are expected to transform India's REIT platform into a broad, multi-sector investment universe, attracting both domestic and international investors seeking exposure to India's growing real estate market. With the foundational framework now firmly in place, India's REIT market stands at an inflection point, ready to capitalize on its substantial growth potential over the coming decade.
