Institutional Real Estate in India: REITs to Capture a Larger Share by End of Decade

India’s Real Estate Investment Trust (REIT) market — which currently accounts for around 20 % of the country’s institutional real estate stock — is projected to grow significantly by 2030, with penetration expected to reach 25–30 % of institutional property assets by the end of the decade, according to industry estimates.

Although India entered the REIT space later than many global peers and has a lower penetration rate than mature markets such as the U.S., Singapore and Japan, recent momentum is helping broaden investor participation and institutional adoption.

Part of the anticipated growth is attributed to diversification into new asset classes beyond traditional Grade-A office stock. Analysts see data centres, logistics parks and retail malls becoming increasingly REIT-eligible, creating new investment avenues and attracting both domestic and foreign capital.

Strong leasing demand, especially from Global Capability Centres (GCCs) — which now account for a large share of office space uptake in major cities — is also cited as a key driver for REIT expansion, reinforcing the role of commercial real estate as a core component of institutional investment strategies.

As more assets and sectors become REIT-ready, India’s real estate landscape is expected to become more transparent and accessible to a wider range of investors, a trend that could solidify the market’s growth trajectory through the rest of the decade.