Have India’s REITs Surpassed Hong Kong in Market Capitalization?
Synopsis
India's REIT sector has transformed into a key player in the investment landscape, achieving a gross asset value of Rs 2.3 lakh crore, surpassing Hong Kong. With impressive returns and growing participation, the future looks bright for this asset class.
Key Takeaways
India's REITs surpassed Hong Kong in market cap.
Gross asset value stands at Rs 2.3 lakh crore .
Annualized returns exceed 8.9 percent .
Distribution yield is attractive at 5.1–6 percent .
Sector set to exceed $20 billion in market cap.
New Delhi, Dec 22 (NationPress) The real estate investment trust (REIT) landscape in India has transitioned from a policy initiative to a significant asset class, boasting a gross asset value of approximately Rs 2.3 lakh crore that surpasses the market capitalization of Hong Kong’s REIT sector, according to a recent report.
As per the findings from Anarock Capital, the equity market capitalization of this sector reached around Rs 1.66 lakh crore as of September 30, 2025, outstripping that of Hong Kong's REIT market, despite only 32 percent of eligible REIT stocks being listed.
Indian REIT indices recorded an impressive five-year annualized price return of over 8.9 percent, outperforming counterparts in Singapore, Japan, and Hong Kong, the report highlights.
During the same timeframe, numerous developed markets experienced negative or minimal returns.
“The Q2 FY26 performance metrics reveal a robust total-return scenario that has shown remarkable resilience amidst interest rate hikes and market fluctuations,” noted Shobhit Agarwal, CEO of Anarock Capital.
“Since their introduction, the unit prices of the first four REITs have increased between 25 percent and 61 percent, while the recently launched Knowledge REIT has seen an approximate 12 percent rise,” he added.
The report points out that unit price appreciation, combined with consistent income generation, has led to trailing 12-month distribution yields within a favorable 5.1–6 percent range. The five REITs in India distributed more than Rs 2,331 crore in Q2 FY26, marking an astounding 70 percent year-on-year growth.
“With upcoming index inclusion and increasing domestic engagement, the sector is poised to exceed a $20 billion market capitalization soon,” stated Vishal Singh, Managing Director of Investment Banking at ANAROCK Capital.
The obligatory distribution of at least 90 percent of net distributable cash flows has transformed these trusts into efficient yield-generating instruments, broadening access to Grade-A commercial real estate for both high-net-worth individuals (HNIs) and retail investors.
Portfolios are operating at near-optimal levels, with committed occupancy rates between 90–96 percent, and the sector represents over 20 percent of total gross office leasing across India in Q2 FY26.
Point of View
The growth of India's REIT sector is a testament to the evolving investment landscape in the country. As more investors recognize the value and potential of real estate, this sector not only provides lucrative opportunities but also democratizes access to high-quality commercial properties for the masses. NationPress stands in support of this growth, emphasizing the importance of transparency and efficiency in the real estate market.
NationPress
10 May 2026
Frequently Asked Questions
What is the current gross asset value of India's REITs?
India's REIT sector has reached a gross asset value of approximately Rs 2.3 lakh crore.
How does India's REIT market compare to Hong Kong's?
India's REIT market has surpassed Hong Kong in market capitalization, currently valued at about Rs 1.66 lakh crore.
What are the annualized returns for Indian REITs?
Indian REIT indices have shown a five-year annualized price return exceeding 8.9 percent.
How much did Indian REITs distribute in Q2 FY26?
In Q2 FY26, Indian REITs distributed over Rs 2,331 crore, marking a 70 percent year-on-year growth.
What is the future outlook for India's REIT sector?
With anticipated index inclusion and increasing domestic participation, the sector is expected to breach a $20 billion market cap in the near future.
