India is set to become one of the world’s most dynamic real estate investment trust (REIT) markets, driven by developers monetising prime commercial assets like offices, retail, warehousing and data centres, U.S.-based consultant Vestian said on Saturday.
Vestian’s report highlighted vast potential in India’s REIT sector, with market capitalisation projected to rise from $18 billion in 2025 to $25 billion by 2030. The country boasts over 1 billion sq ft of office stock, nearly half deemed REIT-worthy, anchored by stable 5-7% yields from tenants including Global Capability Centres (GCCs), tech firms and BFSI players.
India currently has five listed REITs: Sattva Group and Blackstone-backed Knowledge Realty Trust, K Raheja’s Mindspace Business Parks REIT, Brookfield India Real Estate Trust, Embassy Office Parks REIT and Nexus Select Trust – the only retail-focused one. Their portfolios cover over 135 million sq ft, mostly offices.
“The foundations are firmly in place. The next phase of growth will be driven by diversification, scale, and policy coherence,” the report stated, predicting expansion into data centres, logistics and industrial parks.
Vestian CEO Shrinivas Rao told Reuters: “India’s REIT market holds huge upside potential, given its low penetration and the need to move beyond offices and selective retail. As the market evolves, asset classes such as data centres, logistics, industrial parks, and warehousing offer scalable, yield-bearing opportunities.”
Residential assets lag due to 2-3% rental yields, fragmented ownership and no unified rental policy, though co-living and student housing show promise as longer-term plays.
Bengaluru’s Bagmane Group recently filed for a REIT IPO to raise up to 4,000 crore rupees ($475 million), potentially becoming India’s sixth listed REIT.
