Mumbai: India’s Real Estate Investment Trust (REIT) market is witnessing strong growth and emerging as a competitive investment avenue in Asia, according to a report released by ANAROCK.
The report, titled “India REITs: Taking a Stride – Building Momentum with Scale & Performance,” was unveiled at EXCELERATE 2026, a finclave organised by NAREDCO Maharashtra NextGen.
According to the report, Indian REITs have delivered nearly 9 per cent average price returns over the past five years, outperforming several Asian markets, while distribution yields have remained stable at 5–6 per cent.
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The report noted that India has achieved a scale comparable to established REIT markets such as Hong Kong and continues to gain traction among both domestic and global investors.
It highlighted that the introduction of Small and Medium REITs (SM REITs) in 2025 has enabled wider retail participation through a fractional ownership model and is expected to unlock monetisation opportunities worth ₹67,000 crore to ₹71,000 crore.
Operational performance of REITs in India remains strong, with portfolio occupancy levels consistently above 90 per cent, supported by leasing from global corporates across sectors such as technology, BFSI, consulting and telecommunications.
REITs accounted for over 20 per cent of pan-India office leasing activity in the second quarter of FY26, with healthy re-leasing spreads and rental growth indicating sustained income potential, the report said.
Since listing, Indian REITs have delivered capital gains ranging from around 12 per cent to over 60 per cent, along with consistent distribution yields.
The report also highlighted tax efficiency as a key factor driving investor interest, noting that REIT regulations mandate distribution of at least 90 per cent of net distributable cash flows, with more than 65 per cent of such distributions being tax-exempt for investors.
It added that only about 32 per cent of India’s REIT-worthy assets are currently listed, indicating significant scope for expansion in the coming years.
The report further stated that diversification into emerging asset classes such as logistics parks, data centres, healthcare infrastructure and residential real estate is expected to broaden the REIT investment landscape.
Real Estate Investment Trusts were introduced in India by Securities and Exchange Board of India in 2014 to formalise real estate investments and provide investors with liquidity, diversification and stable income streams.
India currently has five listed REITs managing over 176 million square feet of leasable area, with the sector witnessing steady growth since the first listing in 2019.
Speaking at the event, Vikas Jain, President, NAREDCO Maharashtra NextGen, said India’s real estate sector has undergone a significant transformation over the past decade, with investor confidence at an all-time high.
“Platforms like EXCELERATE 2026 will play a critical role in bringing together stakeholders to explore capital partnerships and accelerate growth,” he said.
Dr Niranjan Hiranandani, Chairman Emeritus, NAREDCO Maharashtra, said the sector is at an inflection point, with urbanisation expected to rise from 35 per cent to nearly 50 per cent by 2047.
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“The industry has transitioned towards institutional capital through private equity and REITs and is steadily evolving into a global asset class,” he added.
