India’s real‑estate market is about to change course. Current REITs—publicly listed real estate investment trusts—are mainly tied to office buildings, but experts say the next big wave will come from retail malls, shopping centres and mixed‑use projects.
ANAROCK Research, a leading real‑estate analytics firm, projects that by 2030 the retail REIT segment could grow to between ₹60,000 and ₹80,000 crore. That would make retail REITs roughly 30–40 % of India’s entire estimated ₹2 lakh crore REIT universe. The growth will come as top‑grade malls mature into reliable, income‑generating assets and more investors look to pull institutional portfolios into the public market.
“Retail REITs are set to become a larger part of the ecosystem,” says Anuj Kejriwal, CEO and Managing Director of ANAROCK Retail. “We expect 2–3 new retail REIT vehicles in the next three to five years, as more Grade‑A malls get listed.” Currently, only one retail‑focused REIT exists in India, but the market is poised to expand.
The trend mirrors what mature economies see today, where retail REITs account for 15–25 % of total REIT market cap. Institutional investors are driving activity by targeting the rising‑income, high‑spending areas of Tier‑II cities like Indore, Coimbatore, Surat, Bhubaneswar and Chandigarh. In these hubs, top mall owners already control about 60 % of the organized retail market stock, and new retail REITs will push the sector even further toward institutionalization.
Planned projects are already on the horizon: developers are targeting sites of 1–1.2 million square feet, with nearly half the new floor space earmarked for entertainment, food & beverage, and lifestyle retail. Older malls are expected to be repurposed into integrated lifestyle districts, feeding into a wave of mixed‑use redevelopment.
In short, India’s REIT landscape is shifting from a narrow focus on office space toward a broader mix of retail and mixed‑use assets, driven by stable income potential, rising consumer spending and urban growth. This evolution promises fresh investment opportunities and a more diversified real‑estate sector for the coming decade.
Source: ianslive
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