India's REIT Market Grows Exponentially Post-COVID, Reaching Rs 1.72 Lakh Crore
Synopsis
In a striking development, India's domestic-listed REIT market has surged over six-fold since FY20, now valued at Rs 1.72 lakh crore. This transformation is driven by new listings and stable price growth, with further regulatory support on the horizon.
Key Takeaways
India's REIT market has grown over six-fold since FY20.
Current market value stands at Rs 1.72 lakh crore .
Significant regulatory changes are expected to promote broader REIT adoption.
CBRE estimates India's SM REIT market could exceed $75 billion .
The office sector REIT is the preferred choice for investors.
New Delhi, March 13 (NationPress) The Real Estate Investment Trust (REIT) market in India has witnessed a remarkable increase, expanding over six times since the fiscal year 2020, which was marked by the pandemic. It surged from Rs 27,100 crore in 2019-20 to Rs 1.72 lakh crore in the initial nine months of FY26, according to a recent report published on Friday.
The CBRE report attributes this significant growth to the introduction of the country’s inaugural REIT in FY20, along with ongoing new listings and a consistent appreciation in unit prices among existing REITs.
Among the listed REITs, four have achieved more than 20 percent year-on-year (YoY) growth in unit prices from Q3 FY25 to Q3 FY26.
“The REIT market in India has consistently provided favorable returns to investors, even amidst a fluctuating global economic environment,” stated Anshuman Magazine, Chairman and CEO for India, Southeast Asia, the Middle East, and Africa at CBRE.
The report further emphasizes upcoming regulatory changes that are anticipated to promote broader acceptance of REITs in 2026 and beyond.
The Securities and Exchange Board of India (SEBI) has decided to reclassify REITs as equity-related instruments effective from January, which is expected to enhance liquidity by allowing greater participation from mutual funds and specialized investment funds that were previously limited by hybrid investment constraints.
Additionally, the sector stands to gain from the Reserve Bank of India’s proposal permitting commercial banks to lend directly to REITs, aligning the structure with that of Infrastructure Investment Trusts (InvITs).
Moreover, the Union Budget 2026-27 has laid out intentions to monetize Central Public Sector Enterprise (CPSE) assets through specialized REIT frameworks, potentially unlocking value in state-owned commercial real estate and providing investors with access to sovereign-backed assets.
According to CBRE India Research, India's SM REIT market could surpass $75 billion, supported by over 500 million square feet of eligible office, logistics, and retail properties.
The office sector REIT is identified as the most favored segment for investment, with roughly 42 percent of respondents in India expressing a willingness to allocate capital.
Currently, five REITs are publicly traded on Indian stock exchanges, namely the BSE and NSE.
Point of View
It is evident that India’s REIT market has not only rebounded post-COVID, but it has also set a path for sustainable growth with the anticipated regulatory changes. The sector's resilience during global volatility underscores its potential for long-term investment.
NationPress
28 Jun 2026
Frequently Asked Questions
What is the current value of India's REIT market?
As of the first nine months of FY26, India's domestic-listed REIT market is valued at Rs 1.72 lakh crore.
How much has the REIT market grown since FY20?
The REIT market has expanded more than six-fold since FY20, rising from Rs 27,100 crore.
What are the expected regulatory changes for REITs?
SEBI's reclassification of REITs as equity-related instruments is expected to enhance liquidity and participation from mutual funds and specialized investment funds.
Which sector is most preferred for REIT investment in India?
The office sector REIT is currently the most favored segment for investment among Indian respondents.
How many REITs are currently listed in India?
Currently, there are five REITs listed on the Indian stock exchanges, including the BSE and NSE.
