A favorable market sentiment across India’s major cities.
The India Monthly Market Dynamics provides a comprehensive overview of India's real estate market. The report highlights that in November 2025, demand for office space and retail leasing has gone up in most cities, while residential new launches increased across several markets.
The Indian REIT market has achieved remarkable expansion over six years, with market capitalization growing from INR 264 bn in FY20 to INR 1.6 tn as of Sep’25.
The sector has evolved from a single REIT managing 33 mn sq ft in 2019 to five listed REITs collectively controlling 174 mn 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 mn 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 FY25. The overall steady distributions trend continues in H1 FY26 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 bn to INR 2.1 tn, demonstrating significant expansion in number of REITs and office assets in India through the REIT structure.
The report offers city-specific insights on office, retail, and residential markets for key Indian cities, including rental and capital value trends, significant transactions, and infrastructure updates. It serves as a valuable resource for understanding the current state and future trajectory of India's real estate market. What’s more? Dr. Samantak Das, Chief Economist and Head Research & REIS, shares his insights on ‘India Institutional Capital Flow Market Perspective’ published by JLL.