REITs market projected to reach ₹ 19.7 trillion by 2030: Knight Frank India report

Knight Frank India, in collaboration with the Confederation of Indian Industry (CII), today launched its latest report, Commercial Real Estate: Potential is Built, Opportunity is Now, during the CII Conference on the Evolving Landscape of Indian Real Estate – CRE: Unlocking Investments, Opportunities & Economic Growth.

The report positions India’s commercial real estate (CRE) sector at a pivotal moment, where its built potential is poised to lead to tangible growth. Among its key highlights, India’s REIT market is expected to reach ₹ 19.7 trillion by 2030 (from ₹ 10.4 trillion in 2025), fuelled by high occupancy, favourable taxation, and broader sectoral inclusion.

Retail consumption across organised formats is estimated at ₹8.8 trillion for FY 2025. Led by shopping centres (₹4.9 trillion), high streets (₹ 3.8 trillion), and other new-age formats such as airport and transit retail. This expansion reflects a clear shift toward experience-driven, consumer-centric destinations where shopping intersects with lifestyle and leisure, per the report.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, said, “India’s CRE transformation is being led by businesses that are more global, technology-driven, and experience-focused than ever before. Consolidation in office demand, resilient retail growth, and the rapid expansion of digital infrastructure have fundamentally reshaped occupier behaviour.”

“Today, companies want efficient, green, future-ready spaces, and capital markets are rewarding that shift. As India heads toward a $7 trillion economy, CRE will play an essential role in powering productivity, attracting investment, and building next-generation urban centers,” adds Baijal.

India’s REITs have the potential to diversify beyond traditional asset classes like office, retail, and warehousing to include industrial parks, data centres, and hospitality. Listed REITs have provided a stable average annual dividend yield of about 5.5%, making them attractive income-generating options. 

By 2030, India’s REIT market (covering office, retail, and warehousing sectors) is expected to reach ₹19.7 trillion. Currently, India has five listed REITs covering around 177 million sq ft of commercial and retail space, comprising operational, under-construction, and upcoming assets worth approximately ₹2.3 trillion, with over 290,000 unitholders, per the report.

India’s office REITs account for just 15.3% of the total office stock across the top eight cities, signalling strong potential for institutional growth. Retail REITs are emerging as a new frontier for India’s real estate market amid a robust revival in organised retail. Warehousing has become one of the most promising future avenues for REITs in India. Driven by e-commerce and third-party logistics (3PL) growth, leasing activity reached 32.1 million sq ft in H1 2025.

Neel Raheja, Chair of the CII National Committee on Real Estate & Housing and Group President of K Raheja Corp, said, “The partnership between CII and Knight Frank underscores a shared commitment to advancing India’s built environment. As commercial real estate matures, it will play a pivotal role in shaping investment flows, employment, and urban transformation. The sector’s progress reflects India’s broader economic journey—where potential is abundant, and the time to seize opportunity is now.”