India’s Real Estate Investment Trust market should expand from 10.4 trillion rupees in 2025 to 19.7 trillion rupees by 2030. This comes from a Knight Frank India report made with the Confederation of Indian Industry.
The REIT market in India will almost double in size over that time. The same report from Knight Frank India and CII backs this up. (File Photo)
High occupancy levels, tax rules that help investors, and more REITs in areas like industrial parks, data centers, and hotels will drive this growth. The report, called Commercial Real Estate: Potential is Built, Opportunity is Now, points this out.
At a CII event on India’s changing real estate scene, experts noted commercial real estate is starting a strong growth period. Office needs, retail spread, better warehouse setups, and more money from big investors fuel it. Private equity money jumped from 500 million dollars in 2011 to billions by 2019. This has boosted openness and paved the way for quick REIT growth, per the report.
As India aims for a 7-trillion-dollar economy, commercial real estate will help boost output, draw funds, and create modern city hubs. Shishir Baijal, chairman and managing director of Knight Frank India, said this.
Also Read: India’s retail REIT market may reach 60,000 to 80,000 crore rupees by 2030: Report
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Office and retail REITs lead the way Office REITs in India make up 15.3 percent of office space in the top eight cities right now. The worth of office assets fit for REITs should almost double, from 8.2 trillion rupees in 2025 to 16 trillion by 2030.
Global capability centers, tech companies, and local businesses want green, top-quality workspaces. This keeps office demand strong. India’s office market hit over 1 billion square feet in 2025. It ranks fourth worldwide, worth 16.4 trillion rupees, the report states.
Retail REITs offer a fresh chance too. From 66 million square feet of top-grade retail space, just 7.3 million square feet sits in REIT setups now. REIT-fit retail assets should rise in value from 1.5 trillion rupees in 2025 to 2.4 trillion by 2030, the report forecasts.
Organized retail spending in India hits 8.8 trillion rupees in fiscal year 2025. Shopping malls lead at 4.9 trillion, high streets at 3.8 trillion, plus new spots like airport and travel retail. Clothes and food drinks take more than half of sales in malls and high streets.
Retail REITs give investors a key way to join India’s spending boom. Viral Desai, senior executive director at Knight Frank India, noted this. Shops focused on fun experiences and green builds shape what’s next.
Read More: Want to put 10 lakh rupees into real estate without tenant headaches? A small market REIT might work
Warehousing, industrial, and data center REITs gain ground Warehousing stands out as one of India’s quickest-growing commercial real estate parts. E-commerce growth and third-party logistics back it. The top eight markets have 220.9 million square feet of grade-A space. This leaves room for more formal big-investor setups. In the first half of 2025, leases hit 32.1 million square feet.
The full worth of warehousing and industrial REIT or InvIT assets will climb from 0.7 trillion rupees in 2025 to 1.3 trillion by 2030. Tech-smart, eco-friendly logistics parks now build to match green standards and pull steady funds.
Data centers count as India’s top-growing commercial real estate type. Capacity tops 10 gigawatts, with 1.4 gigawatts running and 8.8 gigawatts in works. AI, 5G, cloud use, and local data rules spark huge jumps.
The Knight Frank-CII report adds that office and retail still draw big money, but industrial REITs and data setups will shape the future.
India’s commercial real estate shifted from talk to real results. Desai said this. With REITs growing from 10.4 trillion to 19.7 trillion rupees by 2030, efforts should turn to solid supply, green practices, and world-class property care.