Indian REITs Deliver 6–7% Yields, Surpassing Global Benchmarks –
ANAROCK-CREDAI Report
· Since 1st REIT
listing in 2019, sector reaches market capitalization of approx. USD 18 Bn as
of August 2025, projected to cross USD 25 Bn by 2030
· India’s REIT market
accounts for just 20% of institutional real estate, far below the US (96%) or
Asian peers like Singapore (55%) & Japan (51%)
· Unlike Indian
REITs, mature global markets exhibit higher REIT diversification, with retail,
industrial, & specialized segments like data centres
· Data Centre REITs,
valued globally at ~USD 250 Bn in 2024 projected to double within 7 yrs; India
to mirror this trend as reflected in a 60% YoY surge in industrial &
logistics leasing in H1 2025, 30% YoY rise in warehousing absorption, & 3X
increase in institutional investment (USD 2.5 Bn in 2024)
· Out of the total
REIT-worthy office stock of approx. 520 Mn sq. ft. in the top 7 cities, just
32% or 166 Mn sq. ft. currently listed
· While India lags
mature markets (like the US, Singapore, & Japan) in diversification of REIT
asset classes, but the risk-adjusted yields here remain attractive
Singapore, 12 September 2025: Since the first listing in 2019, the
Indian REIT market has expanded steadily, reaching a market capitalization of
around USD 18 Bn as of August 2025. With three more REITs expected over the
next four years, India is projected to cross USD 25 billion in market
capitalization. The report ‘Indian REITS: A Gateway to
Institutional Real Estate’ by official knowledge partner
ANAROCK Capital and CREDAI, unveiled today at the CREDAI NATCON in Singapore,
examines the Indian REIT landscape in fine detail.
Shobhit Agarwal, CEO – ANAROCK Capital, says, “Indian REITs are late to the
party, but now lead the dance. Despite its late entry compared to global peers,
India has strong fundamentals. The distribution yields, currently averaging at
6-7%, are well above many mature markets such as the US and Singapore among
others. Average distribution yields of Indian REITs are competitive with
fixed-income instruments but have the added potential for capital appreciation.
We take a deep dive into this phenomenon in the report.”
Mr. Shekhar Patel, President, CREDAI, says, “Over 60% of India’s REIT
market value today rests with very small set of players, with a strong base in
Grade A offices linked to IT and BFSI. The future, however, holds far wider
promise. As India’s cities grow, infrastructure strengthens, and the economy
diversifies, REITs will expand into retail, logistics, housing, and new-age
assets. This transformation will unlock unprecedented opportunities for
investors and firmly place India among the most dynamic REIT markets in the
world.”
Share of REITs in the Real Estate Market
Despite REIT guidelines being introduced in 2014 and the first listing
only in 2019, Indian REIT market accounts for just 20% of institutional real
estate, far below the USA (96%) or even Asian peers like Singapore (55%) and
Japan (51%). This limited penetration is largely because Indian REITs are so
far concentrated in Grade A commercial office assets, which offer scale,
transparency, and stable cash flows. As the market matures, diversification is
expected through data centres and logistics REITs, supported by rising digital
demand and e-commerce growth, while retail mall REITs may follow with ongoing
consolidation.
Residential REITs remain a longer-term prospect, constrained by low
rental yields and fragmented ownership, indicating that Indian REIT sector is
still in the early stages of evolution. With more asset classes becoming REITable,
India’s penetration could potentially rise to 25–30% of institutional real
estate by 2030, positioning it as one of the fastest-growing REIT markets
globally.
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Source: Referenced Data - ANAROCK
Research & Advisory
Further, the report highlights that globally, industrial REITs are
gaining significant momentum on the back of sustained e-commerce penetration,
supply chain re-optimization, and last-mile logistics demand, ensuring
long-term rental growth and capital appreciation. Data centre REITs, valued at
~USD 250 billion by 2024 and projected to double within seven years, are
expanding rapidly due to surging cloud adoption, AI-driven workloads, and
hyperscale infrastructure needs. India is also well-positioned to mirror this
trend, as reflected in a 60% YoY surge in industrial and logistics leasing in
H1 2025, a 30% YoY rise in warehousing absorption, and a threefold increase in
institutional investment to USD 2.5 billion in 2024.
Source: Referenced Data - ANAROCK
Research & Advisory
The regulatory environment has also played a pivotal role in shaping
investor confidence in Indian REITs. Since SEBI’s introduction of REIT
regulations in 2014, progressive reforms - including the reduction of lot
sizes, simplified capital gains, and dividend tax exemptions introduced in 2025
- have strengthened transparency, retail participation, and long-term
stability.
That said, in developed markets like the USA and Singapore, dividends
from REITs are generally taxed at lower rates, making them more attractive for
retail investors compared to India.
All in all, Indian REIT market, though relatively young, is on a strong
growth trajectory and is poised to become a mainstream investment avenue for
both domestic and global investors. REITs in India are supported by deep office
market demand, rising institutional-grade stock, and a proactive regulatory
environment. Attractive yields of 6–7%, coupled with rental escalations and
capital appreciation opportunities, make Indian REITs highly competitive
compared to global peers.
As the sector diversifies into logistics, warehousing, retail, and data
centres, India’s favourable demographics, rapid urbanization, and sustained GDP
growth will further reinforce its position as one of the most lucrative markets
for institutional capital. The combination of regulatory confidence, market
depth, and growth potential ensures that REITs will play a defining role in
shaping the future of Indian real estate.
Download report - Indian REITS: A Gateway to
Institutional Real Estate
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