India’s REITs market cap likely to double by 2030

New Delhi, Jan 10 India’s Real Estate Investment Trust (REIT) market is poised for significant growth due to under penetration as REITs currently cover only 19 per cent of the country’s listed real estate value, a report said on Saturday.

The report from real estate services firm Vestian said market capitalisation is projected to almost double from $18 billion in 2025 to $25 billion by 2030, while REIT‑able office assets to double from Rs 8.2 trillion in 2025 to Rs 16 trillion.

The global average of listed real estate value in REITs is at 57 per cent compared to 19 per cent of India, highlighting relative under-penetration, and huge headroom for long-term growth, according to the report.

"Alongside the expansion of retail and alternative asset classes, India is well-positioned to emerge as one of the most dynamic REIT markets globally," the report said.

Industrial and warehousing REIT and InvIT opportunities is estimated to expand from Rs 0.7 trillion to Rs 1.3 trillion by 2030, mirroring global shifts where logistics and data centres form core REIT subsectors, it said.

India currently has five listed REITs—four focused on office assets and one in the retail segment.

"As the market evolves, asset classes such as data centres, logistics, industrial parks, and warehousing offer scalable, yield-bearing opportunities aligned with mature global REIT markets,” said Shrinivas Rao, FRICS, CEO, Vestian.

Office assets' listed portfolios span over 135 million sq ft, benefitting from predictable leasing demand from Global Capability Centres (GCCs), technology firms, and BFSI occupiers, supporting stable yields of 5–7 per cent.

India has over 1 billion sq ft of office stock, of which nearly 500 million sq ft is considered REIT‑worthy and an additional 34 million sq ft is in the pipeline, the report said.

Two to three new retail REIT listings over the next three to five years, with the retail REIT market potentially reaching $6–9 billion by 2030, according to industry estimates. Indore, Coimbatore, Surat, Chandigarh, and Bhubaneswar are expected to play a key role in shaping this diversified pipeline, it noted.

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