Can India’s REITs Evolve into a Rs 10.8 Lakh Crore Opportunity by 2029?
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Synopsis
India's REIT market is on the brink of an unprecedented expansion, with a projected increase to Rs 10.8 lakh crore by 2029. This growth is fueled by a surge in the office sector and significant institutional investment. Learn how these trends are reshaping the investment landscape and what it means for the future.
Key Takeaways
- India's REIT market projected to grow to Rs 10.8 lakh crore by 2029.
- Office sector to constitute 65.3% of the growth.
- Market capitalization exceeded Rs 1 trillion in FY 2025.
- Strong institutional investment indicates market maturity.
- Occupancy rates of office REITs reached 91% as of September 2025.
New Delhi, Nov 27 (NationPress) The Real Estate Investment Trust (REIT) landscape in India is poised for substantial growth, potentially reaching Rs 10.8 lakh crore in gross asset value by 2029, with the office sector projected to comprise approximately 65.3% of this total, according to a recent report.
As of FY 2025, India's REIT market has crossed a significant milestone, surpassing the Rs 1 trillion market capitalization mark, as highlighted in a report by consultancy firm JLL.
The analysis indicates a remarkable increase in REIT market capitalization from Rs 264 billion in fiscal 2020 to Rs 1.6 trillion as of September 30, 2025.
Since 2019, the sector has advanced from a single REIT managing 33 million sq ft to five listed REITs that together oversee 174 million sq ft of leaseable office and retail space.
“The REIT sector in India has transformed from a nascent concept to a highly attractive investment option. This impressive 40% CAGR over the last 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 composition of unit holdings shows a significant surge in institutional investments from mutual funds, insurance firms, pension funds, sovereign wealth funds, and NBFCs, indicating the sector's increasing maturity.
By June 2025, REITs accounted for 15% of the Grade A office inventory in the top seven Indian cities, up from 4.2% in 2019.
Robust leasing fundamentals have been observed with overall occupancy rates of office REITs reaching 91% as of September 2025 across all four office REITs.
The combination of institutional capital influx, regulatory encouragement, and a strong asset pipeline places India's REIT market on a trajectory for exponential growth over the next 5-7 years, making strategic positioning crucial for market leadership, the report notes.
The Chairman of SEBI, Tuhin Kanta Pandey, mentioned earlier this month that the market regulator is currently evaluating whether to incorporate Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) into major market indices.
Point of View
It's crucial to recognize the transformative potential of India’s REIT market. This growth not only signifies confidence in real estate as an investment but also reflects broader economic trends. Such developments are pivotal for our national financial health and warrant attention from all stakeholders in the investment landscape.
NationPress
27/11/2025
Frequently Asked Questions
What is the current market capitalization of India's REIT sector?
As of FY 2025, India's REIT market has surpassed Rs 1 trillion in market capitalization.
What percentage of India's REIT market is projected to come from the office sector?
The office sector is expected to contribute about 65.3% to the total projected growth of Rs 10.8 lakh crore.
How many REITs are currently listed in India?
India currently has five listed REITs managing a total of 174 million sq ft of leasable space.
What has been the growth rate of the REIT market in recent years?
The REIT market has experienced a remarkable 40% Compound Annual Growth Rate (CAGR) over the past six years.
How has institutional investment in REITs changed?
There has been a significant increase in institutional holdings from various entities such as mutual funds and insurance companies, reflecting the sector’s maturity.
