NEW DELHI — India’s listed Real Estate Investment Trust (REIT) market has grown more than sixfold since the COVID-19 pandemic, expanding from ₹27,100 crore in FY20 to ₹1.72 lakh crore in the first nine months of FY26, according to a report released Friday.
The report by CBRE said the sharp growth followed the listing of India’s first REIT in FY20 and has been driven by both new listings and steady price appreciation in existing REIT units.
Among the listed REITs, four recorded more than 20% year-over-year growth in unit prices between the third quarter of FY25 and the third quarter of FY26.
“India’s REIT market has delivered consistent returns to investors through a volatile global cycle,” said Anshuman Magazine, chairman and CEO for India, Southeast Asia, the Middle East and Africa at CBRE.
The report also highlighted three regulatory developments that could further support wider adoption of REITs beginning in 2026.
The Securities and Exchange Board of India’s decision to reclassify REITs as equity-related instruments starting in January is expected to improve market liquidity by allowing broader participation from mutual funds and specialized investment funds that were previously restricted by hybrid investment limits.
The sector may also benefit from a proposal by the Reserve Bank of India to allow commercial banks to lend directly to REITs, aligning the regulatory framework more closely with infrastructure investment trusts (InvITs), the report said.
In addition, the Union Budget for 2026–27 outlined plans to monetize assets of Central Public Sector Enterprises through dedicated REIT structures. Analysts say this could unlock value from state-owned commercial real estate while providing investors access to sovereign-backed assets.
CBRE India Research estimates that India’s small and medium REIT market could exceed $75 billion, supported by more than 500 million square feet of eligible office, logistics and retail real estate assets.
The office segment remains the most preferred sector for capital allocation, with about 42% of India-based respondents indicating interest in investing in office REITs, according to the report.
Currently, five REITs are listed on India’s major stock exchanges, the Bombay Stock Exchange and the National Stock Exchange. (Source: IANS)
