Will India's Retail REIT Market Surpass Rs 60,000–80,000 Crore by 2030?
Click to start listening
Synopsis
India's retail REIT market is on the verge of significant growth, potentially reaching Rs 60,000–80,000 crore by 2030. This shift, driven by rising consumer spending and urban incomes, could reshape the investment landscape in favor of retail-focused assets.
Key Takeaways
- India's retail REIT market is set for significant growth by 2030.
- Projected value between Rs 60,000 and Rs 80,000 crore.
- Key drivers include consumer spending and urban income growth.
- New retail REITs to emerge in the coming years.
- High-quality retail assets are becoming attractive investments.
New Delhi, Oct 15 (NationPress) — The landscape of India's Real Estate Investment Trust (REIT) market, traditionally dominated by commercial office spaces, is on the brink of a significant transformation. A recent report indicates that the upcoming phase of expansion is likely to stem from retail malls, shopping centers, and mixed-use developments.
By the year 2030, the retail REIT sector in India is projected to reach between Rs 60,000 and Rs 80,000 crore, accounting for roughly 30 to 40 percent of the anticipated Rs 2 lakh crore total REIT market, as per insights from ANAROCK Research.
This transition toward retail REITs is being fueled by the consolidation of high-quality retail assets, consistent consumer spending, and increasing urban incomes.
Currently, India’s listed REIT market is heavily skewed towards office properties, with only a single retail-focused entity. However, ANAROCK predicts the introduction of 2 to 3 retail REITs over the next three to five years as institutional holdings gradually list, given that Grade A malls are evolving into stable, income-generating assets, according to Anuj Kejriwal, CEO & MD of ANAROCK Retail.
The forecast for retail REITs' potential to grow to a market size of Rs 60,000 to Rs 80,000 crore in the next five years is based on the assumption of partial listings of various institutional portfolios, he stated.
This trend is reminiscent of established economies where retail REITs constitute between 15 to 25 percent of the total REIT market capitalization, the report elaborated.
Institutional players are aggressively expanding in high-income, consumption-driven regions of Tier-II cities like Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh.
According to the report, “The leading five mall owners are expected to manage 60 percent of the overall organized retail stock. Emerging retail REITs will further institutionalize the market, paving the way for a surge in mixed-use redevelopment, where older malls will be transformed into integrated lifestyle districts.”
New developments averaging 1-1.2 million sq. ft are currently in the pipeline, with entertainment, food & beverage, and lifestyle retail comprising nearly half of the new mall space, as indicated by ANAROCK Research.
Point of View
It is crucial to recognize the evolving dynamics of India's REIT market. With retail assets gaining traction, this trend mirrors global patterns, indicating a robust future for investors and stakeholders. The focus on quality retail developments and consumer-driven markets underscores the necessity for strategic investment in this sector.
NationPress
16/10/2025
Frequently Asked Questions
What is driving the growth of retail REITs in India?
The growth of retail REITs in India is primarily driven by the consolidation of quality retail assets, steady consumer spending, and increasing urban incomes.
How much is the retail REIT market expected to be worth by 2030?
By 2030, India's retail REIT market is projected to reach Rs 60,000 to Rs 80,000 crore.
How many retail REITs are expected to launch in the coming years?
ANAROCK forecasts the launch of 2 to 3 retail REITs within the next three to five years.
Which cities are seeing aggressive expansion in retail REITs?
Tier-II cities, particularly Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh, are experiencing significant expansion in retail REITs.
What proportion of the retail market do the top mall owners control?
The top five mall owners are expected to control 60 percent of the overall organized retail stock.
