India’s REIT Market to Touch INR 19.7 Trillion by 2030: Knight Frank

India’s REIT Market to Touch INR 19.7 Trillion by 2030: Knight Frank

REITs market projected to reach INR 19.7 tn by 2030, powered by office, retail and warehousing sectors: Knight Frank India

New Delhi, 31th October, 2025: Knight Frank India, in collaboration with the Confederation of Indian Industry (CII), today unveiled its latest report, Commercial Real Estate: Potential is Built, Opportunity is Now, at the CII Conference on Evolving Landscape of Indian Real Estate – CRE: Unlocking Investments, Opportunities & Economic Growth. The report positions India’s commercial real estate (CRE) sector at a defining juncture, where its built potential is set to translate into tangible growth. Among its key highlights, India’s REIT market is projected to reach INR 19.7 tn by 2030 (from INR 10.4 tn in 2025), driven by high occupancy, favourable taxation, and broader sectoral inclusion. 

Private equity participation, rising from USD 500 mn in 2011 to multi-billion-dollar highs by 2019, has enhanced transparency, deepened institutional confidence, and paved the way for REIT expansion across India’s thriving CRE landscape. As urbanisation, technology, and progressive policy reforms continue to reshape the sector, India’s CRE stands poised to unlock the next wave of opportunity across asset classes. 

Retail consumption across the organised formats is estimated at a value of INR 8.8 Tn for FY 2025. Led by shopping centres (INR 4.9 tn), high streets (INR 3.8 tn), and other new-age formats such as airport and transit retail. This expansion reflects a clear shift toward experience-driven, consumer-centric destinations where shopping intersects with lifestyle and leisure.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “India’s CRE transformation is being led by businesses that are more global, technology-driven and experience-focused than ever before. Consolidation in office demand, resilient retail growth and the rapid expansion of digital infrastructure have fundamentally reshaped occupier behaviour. Today, companies want efficient, green, future-ready spaces, and capital markets are rewarding that shift. As India heads toward a USD 7 tn economy, CRE will play an essential role in powering productivity, attracting investment and building next-generation urban centres.”

India’s REITs have a potential to diversify beyond traditional asset classes like office, retail, and warehousing, to industrial parks, data centres, and hospitality. Listed REITs have delivered stable average annual dividend yield of about 5.5%, making them attractive income-generating vehicles. By 2030, India’s REIT market (including office, retail and warehousing sectors) is projected to reach INR 19.7 tn. India currently has five listed REITs covering about 177 mn sq ft of commercial and retail space spanning operational, under-construction, and upcoming assets worth approximately INR 2.3 tn with over 290,000 unitholders.

Office REITs

India’s office REITs account for just 15.3% of the total office stock across the top eight cities, signalling strong potential for institutional growth. Demand from Global Capability Centres (GCCs) and India-facing businesses continues to strengthen, supported by a steady leasing pipeline and occupier preference for premium, sustainable workspaces. The value of REIT-able office assets is expected to rise from INR 8.2 tn in 2025 to INR 16.0 tn by 2030, nearly doubling in five years. With substantial prime office assets yet to enter REIT structures, broader participation from developers and investors will define the next growth phase for India’s office REIT market.

Retail REITs

Retail REITs are emerging as a new frontier for India’s real estate market amid a strong revival in organized retail. With only 7.3 mn sq ft of Grade A stock currently under REITs, out of a total of 66 mn sq ft of Grade A stock, there is significant headroom for institutional expansion. The value of REIT-able retail assets is projected to grow from INR 1.5 tn in 2025 to INR 2.4 tn by 2030, driven by rising consumer demand and the shift toward formal retail formats. As malls, lifestyle hubs, and mixed-use developments proliferate, retail REITs offer a structured, transparent way for investors to participate in India’s consumption-led growth story.

Warehousing and Industrial REITs

Warehousing has emerged as one of the most promising future avenues for REITs in India. Fuelled by e-commerce and third-party logistics (3PL) growth, leasing activity reached 32.1 mn sq ft in H1 2025. The top eight warehousing markets collectively hold 220.9 mn sq ft of Grade A stock, offering vast institutional potential. As technology-enabled, high-quality logistics facilities gain traction among occupiers, industrial and warehousing REITs or InvITs are expected to be launched in the next few years. Value of REIT/InvIT can potentially grow from INR 0.7 tn to INR 1.3 tn by 2030.

Neel Raheja, Chair, CII National Committee on Real Estate & Housing, and Group President, K Raheja Corp, said, “The partnership between CII and Knight Frank underscores a shared commitment to advancing India’s built environment. As commercial real estate matures, it will play a pivotal role in shaping investment flows, employment, and urban transformation. The sector’s progress mirrors India’s broader economic journey—where potential is abundant, and the time to seize opportunity is now.”

India is world’s fourth largest office market (valued at INR 16.4 tn (USD 186 bn) and now it has crossed the 1 bn sq ft milestone in 2025. Over two decades, office stock expanded at a CAGR of 8.6%, underscoring structural resilience and sustained investor appetite.

Between 2008 and 2024, gross leasing activity grew 5% CAGR, while new completions rose just 1%, tightening the supply-to-demand ratio from 1.40 in 2008 to 0.49 in 2025. The report notes that several top developers have shifted focus to residential projects for higher margins and quicker returns, deepening supply constraints.

Trend in Office Completions and Absorption and Trend in End Use Classification 

To achieve the next milestone of 2 bn sq ft, India’s office sector must blend expansion with optimisation through policy incentives, public-private partnerships/JVs and institutional capital. Integrating green certifications early in the planning process is increasingly seen as best practice, enhancing ESG alignment and unlocking additional FSI. Notably, 31% of existing office stock offers retrofitting potential, while 12% of SEZ assets can be adaptively reused, creating scope for sustainable growth.

Across organised formats, retail consumption is estimated at a value of INR 8.8 tn for FY 2025, driven by the expansion of shopping centres, high streets, and emerging formats such as airport and transit retail. Since 90% of the market is unorganised, this presents a huge opportunity to the sector to tap on the consumption boom. This growth underscores a significant transition toward experience-led, consumer-centric retailing, where shopping is increasingly intertwined with lifestyle, leisure, and entertainment.

Shopping Centres continue to dominate the organized retail landscape, accounting for INR 4.9 tn, followed by high streets at INR 3.8 tn and airports contributing INR 0.1 tn. This tiered structure illustrates the evolution of retail into a multi-format ecosystem catering to distinct consumption behaviours. While shopping centres are hubs for curated experiences and brand visibility, high streets retain strong local loyalty and sustained footfall. Despite having a smaller share, airport retail delivers the highest revenue per square feet. 

Across all formats, Apparel and Food & Beverages remain the dominant categories, contributing 50–60% of total revenues in shopping centres and high streets, and over 75% in airport retail. These segments anchor consumption patterns and continue to attract new entrants, reflecting the sector’s alignment with aspirational, lifestyle-led spending.

The report highlights that Tier 2 and Tier 3 cities are emerging as the next growth frontiers, fuelled by increasing disposable incomes, expanding urbanization, and the proliferation of national and regional brands. Developers are responding with smaller, agile shopping centres formats and mixed-use retail destinations designed to optimize footfall and experience.

After two cautious investment years, private equity inflows into retail real estate have touched USD 500 mn year-to-date in 2025, signalling renewed investor confidence. The resurgence is driven by consumption growth, improving rental yields, and the formalization of retail operations.

In parallel, sustainability and technology integration are shaping the sector’s next phase. Smart shopping centre management systems, energy-efficient operations, and digital engagement tools are being adopted to enhance tenant and customer experience. The report notes that the retail sector’s ability to blend technology with human experience will be key to maintaining its growth momentum.

India’s retail story is no longer just about expansion, it is about evolution and resilience. As consumers seek more immersive, meaningful, and value-driven experiences, the sector is redefining how space, experience, and community come together to create long-term value for investors, brands, and consumers alike.

Data centres are now India’s fastest-growing commercial real estate asset class, with total capacity crossing 10 GW (1.4 GW operational and an additional 8.8 GW in the pipeline). Fuelled by 5G, AI, cloud adoption, and data localisation, the sector could see a sevenfold rise in live capacity.

The report identifies key priorities to sustain growth: addressing power availability and reliability, mapping future energy demand, and incentivizing renewable sourcing. It also calls for developing training ecosystems and a harmonized national regulatory framework to align with global best practices. India’s opportunity lies in leapfrogging conventional growth by adopting renewable energy strategies, grid-readiness models, and innovation partnerships seen in mature markets.

Viral Desai, Senior Executive Director Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets and Retail Agency, Knight Frank India, said, “India’s commercial real estate has moved from promise to performance. With office stock crossing 1 bn sq ft and retail consumption as estimated to be INR 8.8 tn for FY 2025, we are witnessing a maturing cycle supported by strong governance, foreign capital and a confident domestic economy. As REITs scale from INR 10.4 tn to a projected INR 19.7 tn by 2030, the focus must shift to quality supply, sustainability and global-standard asset management. The real opportunity lies in converting this built momentum into long-term, inclusive economic value.”

India’s commercial real estate stands at an inflection point, its potential firmly built, and its opportunity unfolding now. As each asset class matures and new capital pathways emerge, the sector is set to play a deeper role in shaping the country’s economic narrative. With structural reforms, sustainability imperatives, and technology-led transformation aligning in its favour, India’s CRE is evolving from a growth story into a story of enduring strength, institutional depth, and global relevance.