India's REIT Market Reaches ₹2.3 Trillion, Set for Major Expansion
According to a comprehensive report by JLL titled Emerging Horizons: Analyzing REIT Performance in India's Evolving Real Estate Market, India's operational Real Estate Investment Trust (REIT) market has achieved a significant valuation of ₹2.3 trillion. This market currently consists of four listed office REITs and one retail REIT, showcasing the growing maturity of this investment vehicle in the country.
Substantial Growth Potential in Office and Retail Segments
The JLL analysis highlights that high-quality, well-performing office assets alone represent an additional opportunity worth ₹5.9 trillion. This indicates a potential fourfold growth for the office REIT segment, pointing toward substantial expansion in the coming years.
Beyond the office sector, retail REITs present compelling expansion prospects. Building on the success of India's operational retail REIT, the market opportunity for additional retail-focused REIT vehicles remains substantial. Across the top seven cities, large and mid-sized malls, along with high-quality neighbourhood retail formats, represent an attractive ₹2.8 trillion opportunity.
Upcoming Supply and SM REIT Opportunities
The report further notes that 70 million square feet is currently under construction or planned supply across office and retail segments in the top seven cities where institutional participation already exists. This upcoming high-quality supply is valued at ₹2.1 trillion, adding to the growth momentum.
This growth runway of ₹10.8 trillion in Gross Asset Value (GAV) is further enhanced by Small and Medium REITs (SM REITs), which unlock an estimated ₹3.2 trillion in additional opportunities. SM REITs enable investments in partial assets, specifically targeting well-leased portions of multiple ownership properties that demonstrate strong overall management performance.
Regulatory Shift and Future Outlook
In September 2025, the Securities and Exchange Board of India (Sebi) redesignated REITs as equity instruments in a strategic alignment with international standards. This regulatory shift has garnered positive reception from industry stakeholders and enables several important developments:
- REIT inclusion in equity market indices
- Increased mutual fund allocations
- Expanded institutional investor access
- Strengthened market liquidity
- Diversified investor base
The move aligns India with global practices, paving the way for future index inclusion and increased institutional investments. With a substantial pool of real estate assets across commercial office, retail, warehousing, and data centre segments yet to be securitised, the REIT universe is expected to witness significant expansion in new listings over the next five to seven years.
The combination of regulatory support, substantial untapped assets, and growing institutional interest positions India's REIT market for robust growth and increased market sophistication in the coming decade.
