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India's Real Estate Investment Trust market continues to remain smaller than global peers, accounting for nearly 20% of the country's institutional real estate universe. According to a recent FICCI Anarock report, five listed REITs have collectively built a market capitalisation of about USD 18 billion over the past seven years. The report indicated that future REIT growth could be supported by newer asset classes such as data centres and logistics parks, alongside sustained office demand driven by Global Capability Centres across major cities.
India's Real Estate Investment Trust market represents only around one-fifth of the country's institutional real estate assets, much lower than mature markets such as the United States, Singapore and Japan. Although India introduced REITs later than many global peers, the segment has made steady progress over the past seven years, with five listed REITs together reaching a market size of nearly USD 18 billion, as highlighted in a recent FICCI Anarock report. Advertisement
The report noted that listed REITs have improved transparency and enabled wider participation by allowing retail investors to gain exposure to income-generating commercial assets. Until recently, institutional investors dominated this segment. Despite this progress, the limited share of REITs in India's overall property market indicates scope for expansion, particularly through diversification beyond traditional office assets.
Data centres and logistics parks were identified as potential asset classes that could support the next phase of REIT growth. Rising digital consumption, cloud adoption and data localisation requirements have increased demand for data centre infrastructure, while growth in e-commerce and organised supply chains has strengthened the need for modern logistics facilities. These assets are increasingly viewed as stable, long-term income generators suited for REIT structures.
The office segment, which remains the backbone of India's REIT market, continued to show resilience, with leasing activity across the top seven cities reaching record levels in the previous year. Global Capability Centres played a key role, accounting for over 40% of gross office leasing. India currently hosts more than 1,700 such centres employing close to 1.9 million professionals.
Projections suggest that the number of Global Capability Centres could exceed 2,400 by the end of the decade, with employment rising to about 2.8 million. The industry's market size has more than doubled since 2019 and is expected to grow to around USD 105-110 billion by 2030, supported by India's cost advantage, skilled workforce and improving infrastructure.
Industry participants observed that India's commercial real estate market is no longer viewed only as a cost centre, but as a strategic factor influencing global investment decisions, job creation and urban development patterns.
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