Indian REIT Market Set for 38% Growth to $25 Billion by 2029
India’s real estate investment trust (REIT) sector is booming, and experts predict exciting times ahead. As of August 2025, the market boasts a capitalization of around $18 billion. A new report from Anarock Capital and CREDAI forecasts it will jump to $25 billion in the next four years—a solid 38% surge. This growth highlights why Indian REITs are turning heads in the global real estate world.
Since the first REIT listed in 2019, the market has built steady momentum. Three more REITs are on the horizon over the coming years, promising more options for investors eyeing real estate investment trusts in India.
What makes Indian REITs stand out? They offer juicy yields of 6-7%, plus rental hikes and chances for capital appreciation. "These perks make them super competitive against global players," says the joint Anarock Capital and CREDAI report. Strong regulations, deep market roots, and huge growth potential mean REITs will shape India’s real estate future.
Shobhit Agarwal, CEO of Anarock Capital, puts it vividly: "Indian REITs arrived late to the global party, but now they’re leading the dance." Even though they started later than markets in the US or Singapore, India’s fundamentals shine. Yields average 6-7%, beating many mature markets. Plus, they match fixed-income returns while adding upside from property value gains. "Our report dives deep into this edge," Agarwal adds.
Still, Indian REITs cover just 20% of institutional real estate—way behind the US at 96% or Singapore’s 55%. Why? So far, they focus on top-tier ‘Grade A’ office spaces, which deliver scale, clear rules, and reliable cash from IT and BFSI sectors.
But change is coming fast. As the market evolves, expect diversification into data centres and logistics REITs, fueled by India’s digital boom and e-commerce surge. Retail mall REITs could join in as consolidation picks up. With more asset types opening up, REIT penetration might hit 25-30% of institutional real estate by 2030, making India one of the world’s fastest-growing REIT markets.
Shekhar Patel, President of CREDAI, notes that over 60% of today’s REIT value ties to a handful of big players in premium offices. "Yet the future looks even brighter," he says. As India’s cities expand, infrastructure improves, and the economy diversifies, REITs will branch into retail, logistics, housing, and cutting-edge assets.
Globally, industrial REITs are thriving thanks to e-commerce growth, supply chain shifts, and demand for last-mile delivery—driving steady rents and property value rises. Data centre REITs, already worth $250 billion in 2024, could double in seven years, powered by cloud computing, AI, and massive data needs.
India’s ready to ride this wave. In the first half of 2025, industrial and logistics leasing soared 60% year-on-year. Warehousing demand jumped 30%, and institutional investments tripled to $2.5 billion in 2024. These trends show why real estate investment trusts in India are poised for explosive growth.
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