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India REIT Market Poised for Major Growth
24 Dec
Summary
- Less than 20% of India's Grade A office stock is in REITs.
- India's REIT market capitalization reached $18 billion.
- REITs are seen as equity instruments focusing on dividends and growth.
India's Real Estate Investment Trust (REIT) market is on the cusp of significant expansion, with a vast portion of the country's Grade A office stock yet to be integrated into REIT structures. Currently, less than 20% of this valuable asset class is held within REIT portfolios, indicating a substantial runway for future growth and listings.
The REIT segment has gained considerable momentum, evidenced by its fifth listing in 2025, which propelled the total market capitalization to approximately $18 billion. Investors are increasingly recognizing the inherent value of these annuity-generating commercial assets, viewing them as equity instruments driven by dividends and total growth, rather than mere debt substitutes.
Experts anticipate a surge in new REIT listings over the next three to four years, extending beyond office spaces to include retail, hospitality, and warehousing sectors. Demand for Grade A commercial real estate remains robust, fueled by institutional investors seeking income-generating properties, though limited supply in prime locations is driving up asset prices and compressing yields.
