Could India’s REITs Achieve Rs 10.8 Trillion Growth by 2029?
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Synopsis
India's REIT sector is poised for remarkable growth, projected to achieve **Rs 10.8 trillion** in asset value by **2029**. As the office market leads this transformation, investor confidence surges, marking a significant milestone in the financial landscape. Discover the evolving trends and strategic insights shaping this burgeoning market.
Key Takeaways
- Projected growth of **Rs 10.8 trillion** in India's REIT market by **2029**.
- Office sector contributes **65.3 percent** to this growth.
- REIT market capitalization increased from **Rs 264 billion** to **Rs 1.6 trillion**.
- Five listed REITs manage **174 million sq ft** of space.
- Combined occupancy rates of office REITs at **91 percent** as of September 2025.
New Delhi, Nov 27 (NationPress) The Real Estate Investment Trust (REIT) market in India is projected to grow by Rs 10.8 trillion in gross asset value by 2029, with the office sector contributing approximately 65.3 percent of this increase, according to a report released on Thursday.
India's REIT market has reached a significant milestone in FY 2025, surpassing the Rs 1 trillion market capitalization mark, as stated in a report by consultancy JLL.
The report highlights that the capitalisation of the REIT market surged from Rs 264 billion in fiscal 2020 to Rs 1.6 trillion as of September 30, 2025.
This sector has transitioned from a solitary REIT managing 33 million sq ft in 2019 to five listed REITs collectively overseeing 174 million sq ft of leasable office and retail space.
“India's REIT sector has transformed from a developing concept to a prominent investment vehicle. This impressive 40 percent CAGR trajectory over six years signifies growing investor confidence in commercial real estate as a viable institutional asset class,” stated Lata Pillai, Senior Managing Director & Head of Capital Markets, India at JLL.
The unit holding pattern indicates a substantial increase in institutional ownership by mutual funds, insurance companies, pension funds, sovereign wealth funds, and NBFCs, demonstrating the market’s growing maturity.
By June 2025, REITs accounted for 15 percent of Grade A office stock in India’s top seven cities, up from 4.2 percent in 2019.
Strong leasing fundamentals were evident, with the combined occupancy rates of office REITs reaching 91 percent as of September 2025 across all four office REITs.
The convergence of institutional capital, regulatory support, and a robust asset pipeline positions India’s REIT market for exponential growth over the next 5-7 years, making strategic positioning crucial for market leadership, the report noted.
Earlier this month, SEBI Chairman Tuhin Kanta Pandey mentioned that the market regulator is actively evaluating whether REITs and Infrastructure Investment Trusts (InvITs) should be included in major market indices.
Point of View
The growth potential in India's REIT market signifies a pivotal shift in investment dynamics. The increasing institutional participation and regulatory support demonstrate a maturing market that aligns with evolving economic trends, making it essential for stakeholders to adapt strategically.
NationPress
27/11/2025
Frequently Asked Questions
What is the projected growth of India's REIT market?
India's REIT market is projected to expand by **Rs 10.8 trillion** in gross asset value by **2029**.
What percentage of the growth will come from the office market?
The office market is expected to account for approximately **65.3 percent** of the overall growth.
What has been the trend in REIT market capitalization?
The REIT market capitalization rose from **Rs 264 billion** in fiscal 2020 to **Rs 1.6 trillion** as of September 30, 2025.
How many listed REITs are there in India?
There are currently five listed REITs in India, managing a total of **174 million sq ft** of leasable space.
What is the occupancy rate of office REITs?
As of September 2025, the combined occupancy rates of office REITs reached **91 percent**.
