India’s REIT Market Poised to Hit ₹19.7 Lakh Crore by 2030: Report
Favourable taxation, robust demand, and expansion into new asset classes to drive growth across commercial real estate
India, Oct 31 : Real Estate Investment Trust (REIT) market is expected to nearly double to ₹19.7 lakh crore by 2030, up from ₹10.4 lakh crore in 2025, driven by high occupancy rates, favourable tax policies, and the inclusion of new real estate segments, according to a joint report by Knight Frank India and the Confederation of Indian Industry (CII) released on Friday.
The report highlights that private equity participation, which surged from $500 million in 2011 to multi billion dollar levels by 2019, has played a pivotal role in strengthening institutional confidence and promoting transparency in India’s commercial real estate sector.
As urbanisation, technology, and policy reforms continue to reshape India’s built environment, the commercial real estate (CRE) sector is poised for another wave of expansion. Retail consumption across organised formats is projected at ₹8.8 lakh crore in FY 2025, led by shopping centres (₹4.9 lakh crore) and high streets (₹3.8 lakh crore), reflecting a shift towards experience-driven and lifestyle-centric retail destinations.
The report notes that India’s office market stock has surpassed 1 billion square feet, ranking fourth globally. It also highlights the potential for REITs to diversify beyond traditional assets such as offices, retail, and warehouses into industrial parks, data centres, and hospitality.
Listed REITs in India have delivered an average annual dividend yield of 5.5%, making them an attractive option for income-focused investors. Currently, five listed REITs represent around 177 million sq ft of commercial and retail space valued at approximately ₹2.3 lakh crore, with over 2.9 lakh unitholders.
“India’s commercial real estate transformation is being driven by businesses that are increasingly global, technology led, and experience focused,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India. “As India moves toward a $7 trillion economy, commercial real estate will be central to boosting productivity, attracting investments, and developing next-generation urban centres.”
REITs allow investors to participate in income generating real estate such as offices or retail complexes without directly managing properties. Investors earn through dividends from rental income and capital appreciation, offering a low barrier entry point into India’s booming property investment landscape.
