New Delhi, Oct 31 (NationPress) The real estate investment trust (REIT) market in India is anticipated to soar to Rs 19.7 lakh crore by 2030, up from Rs 10.4 lakh crore in 2025. This growth is attributed to factors such as high occupancy rates, favorable tax policies, and a wider inclusion of sectors, as detailed in a report published on Friday.

The influx of private equity, which escalated from $500 million in 2011 to multi-billion-dollar figures by 2019, has fostered greater transparency and bolstered institutional confidence, setting the stage for the expansion of REITs within India’s flourishing commercial real estate sector.

As trends like urbanization, technological advancements, and progressive policy reforms continue to reshape the landscape, the report by Knight Frank India in conjunction with the Confederation of Indian Industry (CII) suggests that India’s commercial real estate is on the verge of unlocking significant opportunities across various asset classes.

For the fiscal year 2025, retail consumption in organized formats is projected to be valued at Rs 8.8 lakh crore, with shopping centers contributing Rs 4.9 lakh crore, high streets Rs 3.8 lakh crore, and other innovative formats such as airport and transit retail. This growth signifies a marked transition towards experience-oriented, consumer-centric locations where shopping merges with lifestyle and leisure, according to the report.

India’s office market now boasts a stock exceeding 1 billion square feet, positioning it as the fourth largest globally.

REITs in India have the potential to diversify their portfolios beyond traditional asset classes like office, retail, and warehousing, extending into industrial parks, data centers, and hospitality sectors. Listed REITs have consistently provided a stable average annual dividend yield of approximately 5.5 percent, making them appealing for income generation, as reported.

The report estimates that by 2030, the REIT market in India (encompassing office, retail, and warehousing sectors) is set to reach Rs 19.7 lakh crore. Currently, India features five listed REITs covering about 177 million square feet of commercial and retail space across operational, under-construction, and upcoming assets valued at around Rs 2.3 lakh crore, with over 290,000 unitholders.

“The transformation of India’s commercial real estate (CRE) is spearheaded by businesses that are increasingly global, technology-oriented, and experience-driven,” stated Shishir Baijal, Chairman and Managing Director of Knight Frank India. “With consolidation in office demand, robust retail growth, and rapid digital infrastructure expansion, occupier behavior is fundamentally changing.”

“Presently, businesses seek efficient, green, and future-ready spaces, and capital markets are responding to this evolution. As India progresses toward a $7 trillion economy, CRE will be pivotal in enhancing productivity, attracting investment, and developing next-generation urban centers,” he emphasized.

Investing in REITs allows individuals to purchase shares in firms that own, operate, or finance income-generating real estate, akin to investing in mutual funds. Investors can benefit from dividends generated from rental income and potential capital appreciation, all without the hassle of managing properties directly.