Mumbai (Maharashtra) [India], November 27 (ANI): India’s Real Estate Investment Trust (REIT) market is on the verge of a substantial expansion, with potential growth of Rs 10.8 trillion across office and retail segments over the next four years, according to a report by JLL, a leading real estate and investment management company.
“The REIT sector is positioned for an additional Rs 10.8 trillion (USD 122–125 billion) expansion opportunity across office and retail sectors in just India’s top seven cities by 2029,” the report stated. The office segment is expected to contribute over 65 per cent of this projected growth, highlighting the sector’s accelerating institutionalisation.
JLL noted that India’s REIT market surpassed Rs 1 trillion in market capitalisation in FY25, achieving this milestone within six years of the first REIT listing. Market capitalisation has risen six-fold, from Rs 26,400 crore in FY20 to Rs 1.6 trillion as of September 2025. Since 2019, the total space managed by listed REITs has increased from 33 million sq ft to 174 million sq ft across five REITs, reflecting the deepening of India’s commercial real estate market. Current occupancy across office REITs stands at 91 per cent.
Lata Pillai, Senior Managing Director & Head of Capital Markets at JLL, said the sector’s “remarkable 40 per cent CAGR trajectory over six years” demonstrates rising investor confidence. She noted that the five listed REITs collectively have Rs 23,000 crore in untapped borrowing capacity, enabling significant acquisitions of premium assets and portfolio expansion.
The report also highlighted steady Net Operating Income (NOI) growth across all listed REITs and distribution yields in the 6–7 per cent range through FY25 and into the first half of FY26. The share of REITs in Grade A office stock in India’s top seven cities has increased from 4.2 per cent in 2019 to roughly 15 per cent by June 2025, reflecting rapid institutionalisation. A key boost came with SEBI’s reclassification of REITs as equity instruments in September 2025, allowing index inclusion and broader mutual fund participation.
Dr. Samantak Das, Chief Economist at JLL, noted that the Indian REIT ecosystem could see a five-fold expansion over the next four years, supported by investment-grade office assets worth USD 66–68 billion and retail opportunities of USD 32–33 billion in the top seven cities. “We anticipate a potential five-fold market expansion in the next four years from the current GAV of INR 2.1 trillion, with emerging asset classes likely to create a diversified and accessible REIT ecosystem appealing to a broader spectrum of investors,” he said.
With a combined Gross Asset Value (GAV) of Rs 2.1 trillion, the report suggests that India’s REIT market is at the beginning of a “multi-year growth cycle,” driven by institutional capital, regulatory reforms, and an expanding asset pipeline. (ANI)
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