🏢India’s REIT Market to Grow Over $25 Billion by 2030: A Promising Future
India’s Real Estate Investment Trust REIT market is gaining momentum at a fast pace. According to a recent report by CREDAI, the market will grow over $25 billion in terms of capitalization by 2030. This reflects India’s fast-evolving real estate sector and increasing pull of institutional investors.
🚀 REIT Huge Growth Since 2019
India introduced Real estate investment trust guidelines as far back as 2014, but the initial listed only in 2019. The market expanded gradually since then to approximately $18 billion by August 2025. There are three new REITs soon to launch. So, India will be getting closer to the world leaders in terms of size and range of Real Estate Investment Trust
This growth is fueled by investors seeking stable returns. Indian Real Estate Investment Trusts now offer good yields of 6–7% , better than most of their global peers. Further, rental escalations and potential capital appreciation make them very compelling.
📊Current Market Focus
Indian Real Estate Investment Trusts now only invest in Grade A commercial office buildings to a large extent. These provide scale, transparency, and stable cash flows. The top 7 Indian cities have approximately 520 million sq. ft. of office space that is eligible for Real Estate Investment Trusts . But only 32% of it (166 million sq. ft.) is covered under the REIT umbrella.
Metropolises like Bengaluru, Hyderabad, and Mumbai are the preponderant listed REIT stock. Bengaluru alone accounts for 63.6% of the listed portion, followed by Hyderabad with 30.6% and Mumbai with 29.4%.
🌱 Diversification into New Sectors
The real showstopper remains to be seen. The report highlights how the REIT segment will diversify into warehousing, logistics, retail, and data centers. The sectors will experience gigantic institutional capital.
India’s demographic dividend is the driving force in this case. A young population, rapid urbanization, and stable GDP growth create intense demand. And favorable government policies give investor sentiment a boost.
Globally, industrial REITs thrive with e-commerce growth, supply chain modernization, and increasing logistics demand. Data center REITs also evolve strongly with cloud penetration and AI-backed workloads. India is ready to follow this global phenomenon.
📈Increasing Industrial & Logistics Leasing
The first half of 2025 had already proved to be robust growth:
60% Year-over-Year (YoY) increase in logistics and industrial leasing.
30% YoY growth in warehousing absorption.
Institutional investment tripled to $2.5 billion in 2024.
All these numbers assure that industrial and logistics REITs are going to play a pivotal role in the future of India’s real estate.
🏠Why Residential REITs Take Time
Residential Real estate investment trust are a long-term prospect. The slow rental yields and fragmented ownership slow down quick growth. But with improved regulation and alterations in ownership patterns, residential REITs can gain momentum in the coming decade.
📊Good Regulatory Framework Fuels Growth
One of the key reasons for the success of India’s Real estate investment trust market is the robust regulatory framework established by the Securities and Exchange Board of India (SEBI). The guidelines on it have unambiguously prescribed asset eligibility, minimum public issue requirements, and transparency in standards of disclosure.
The rules provide protection to investors and enhance market confidence. In addition, mandatory periodic distribution of rent revenues make it a very sought-after instrument among domestic and foreign institutional investors.
Compared to other investment vehicles, it offer a unique combination of liquidity, stable income, and long-term appreciation of capital.
Government efforts to push affordable housing and infrastructure development are still in vogue, and the regulatory framework will increasingly foster the growth of REITs across different real estate assets.
💡 Expert Views
Shekhar Patel, President, CREDAI, said,
As cities in India expand, infrastructure consolidates, and the economy broadens, REITs will grow into retail, logistics, housing, and new-gen assets. This shift will open up unprecedented investment opportunities and cement India’s position as one of the most vibrant REIT markets in the world.”
🌟 Sanjeev Singh, Managing Director of SKJ Landbase, adds:
“REITs are transforming India’s real estate investment landscape. They offer investors a regulated, transparent way to earn regular rental income and benefit from property appreciation without directly owning or managing real estate. As REITs expand into logistics, data centers, and retail, they will unlock more opportunities and make real estate investments accessible and safer for institutional and retail investors alike.”
🌟 Last Thoughts
India’s REIT market stands at a critical juncture. The market is still largely office-dominated today, but inroads into diversified assets promise higher growth. Growth to 25–30% of institutional property by 2030 makes India one of the world’s fastest-growing markets.
For investors, it offers stable returns and long-term appreciation in capital. With good fundamentals, regulatory support, and urbanization, the future is bright for Indian REITs.
