The Future of Real Estate: India’s REIT Market to Skyrocket to Rs 19.7 Lakh Crore in Five Years

According to a collaborative report by Knight Frank India and the Confederation of Indian Industry (CII), India’s REIT market is on an accelerated growth trajectory expected to reach Rs 19.7 lakh crore by 2030, up from Rs 10.4 lakh crore in 2025. This remarkable growth is supported by high occupancy rates, favourable taxation, and expanding sectoral inclusion across office, retail, and warehousing segments.

India’s office space inventory has surpassed 1 billion square feet, ranking fourth globally, while retail markets are evolving with consumer-centric, experience-driven formats including shopping centres and high streets. Warehouse formalisation and digital infrastructure growth further contribute to the expanding REIT landscape.

Private equity interest has blossomed, rising from $500 million in 2011 to multibillion-dollar levels by 2019, which has significantly enhanced transparency and confidence in the market. Institutional investors are increasingly drawn to REITs for their attractive dividend yields averaging 5.5%, appealing as stable income-generating assets.

The report emphasizes the shift towards smart, sustainable, and globally benchmarked commercial properties, positioning CRE as integral to India’s emerging $7 trillion economy by boosting productivity, investment, and urban development.

Key Highlights:

• REIT market projected to reach Rs 19.7 lakh crore by 2030 from Rs 10.4 lakh crore in 2025.
• Office space demand, retail expansion, and warehousing formalisation drive growth.
• India’s office stock surpasses 1 billion sq ft, fourth largest globally.
• Improved taxation, sector diversification, and private equity inflows fuel expansion.
• Listed REITs offer ~5.5% average stable dividend yields, attracting income-focused investors.
• Evolution towards green, efficient, and technology-enabled commercial properties.
• CRE sector pivotal in achieving India’s $7 trillion economic milestone.

Sources: Economic Times, Moneycontrol, Hindustan Times, Knight Frank India report