REIT Penetration in India’s Institutional Real Estate Seen Rising to 30% by 2030

India’s Real Estate Investment Trust market is entering a decisive growth phase, with REIT penetration in institutional real estate projected to rise from the current 20% to nearly 25–30% by 2030. Industry experts believe this shift reflects the growing maturity of India’s property markets and increasing investor appetite for stable, income-generating real estate assets.

Although India joined the global REIT landscape later than markets such as the United States, Singapore and Japan, progress over the past seven years has been steady. The country now has five listed REITs with a combined market capitalisation of nearly 18 billion dollars. These platforms have played a key role in democratising property ownership by opening institutional-grade assets to retail and long-term investors.

Office assets continue to remain the backbone of India’s REIT market, supported by record leasing activity across the top seven cities. Demand has been largely driven by Global Capability Centres, which now account for over 40% of total office leasing. India is expected to host more than 2,400 GCCs by 2030, employing close to 2.8 million professionals, reinforcing long-term demand for high-quality office spaces.

Beyond offices, the next phase of REIT growth is expected to come from diversification into alternative asset classes. Data centres, logistics parks and select retail assets are gaining prominence as investors look for resilient income streams aligned with digitalisation, e-commerce growth and urban consumption trends. These segments are increasingly viewed as natural extensions of the REIT framework in India.

From a macro perspective, India’s Grade A office stock across major cities already exceeds 800 million square feet, with Bengaluru and the NCR accounting for a significant share. Strong net absorption and sustained leasing activity underline the structural strength of the market, even amid global economic uncertainty.

As capital markets deepen and regulatory clarity improves, REITs are expected to play a larger role in shaping India’s institutional real estate ecosystem. The coming years could see REITs emerge as a preferred investment route, offering transparency, steady yields and long-term value creation.