India's Real Estate Investment Trust (REIT) market has undergone a remarkable transformation since its inception in 2019, evolving from an emerging concept to a significant investment vehicle. This transformation has been marked by a 6-fold surge in market capitalization reflects the soaring investor confidence. By offering a compelling blend of predictable income and steady growth, REITs have established themselves as a formidable investment class, providing a stable harbor in contrast to the volatility of traditional realty stocks. This report – “Emerging Horizons - Analyzing REIT Performance in India’s Evolving Real Estate Market” is a comprehensive analysis of the performance and growth trajectory of India's five listed REITs across the office and retail sectors.
The mark of a developing market
The Indian REIT market has achieved remarkable expansion over six years, with market capitalization growing from INR 264 billion (USD 3.1 billion) in FY 2020 to INR 1.6 trillion (USD 19 billion) as of 30th September 2025. The sector has evolved from a single REIT managing 33 million sq ft in 2019 to five listed REITs collectively controlling 174 million sq ft of leasable office and retail space, highlighting its robust growth trajectory. This remarkable 40% CAGR trajectory across 6 years reflects increasing investor confidence in commercial real estate as an institutional asset class.
A key trend shaping India's nascent REIT market is its evolving ownership structure. A progressive shift from sponsor-led portfolios toward a significant influx of institutional capital is becoming evident. This pivotal transition is a powerful vote of confidence from sophisticated domestic and global investors, signaling the sector’s strengthening credibility and fostering a more transparent ecosystem. This growing institutional interest is complemented by an expanding base of retail investors, highlighting the asset class’s broadening appeal.
This financial evolution is anchored by disciplined geographic strategies, with the office REITs concentrating portfolios in India’s primary commercial hubs to leverage deep local expertise and achieve critical operational scale. Together, the currently operational four office REITs manage 134 million sq ft of premium office space, representing approximately 15% of India's total Grade A office stock across top cities.
Distribution yields across these REITs have generally ranged between 6% to 7% during FY2025. The overall steady distributions trend continues in H1 FY2026 across all three office REITs suggesting that high-quality office buildings in the key cities continue to generate reliable income streams and maintain strong occupancy fundamentals.
Total GAV across the four office REITs has increased by a CAGR of 40%, from INR 330 billion to INR 2.1 trillion, demonstrating significant expansion in number of REITs and office assets in India through the REIT structure.
The road ahead: a multi-billion-dollar opportunity
The outlook remains exceptionally promising, with India's REIT market presenting a substantial growth opportunity of INR 10.8 trillion (USD 122.4 billion) across office, retail, and upcoming institutional-quality supply in top seven cities. This represents a potential 5X expansion from the current market size. Additionally, SEBI's recent reclassification of REITs as equity instruments aligns India with global practices, facilitating increased institutional investments and index inclusion potential.
Recent regulatory tailwinds, such as SEBI's reclassification of REITs as equity instruments, are set to further accelerate this trajectory by enabling index inclusion and attracting greater mutual fund allocations. With significant untapped debt capacity, India’s REITs are well-capitalized to pursue strategic acquisitions and cement their role as a cornerstone of modern real estate investment. The Indian REIT market is positioned for exponential growth, with the current market capitalization of INR 1.6 trillion representing just the beginning of a multi-year, growth opportunity cycle.
