The Indian real estate investment trust (REIT) sector is observing a quick progress trend, and the sector is expected to almost double in size from the current value of Rs 10.4 lakh crore in the year 2025 to Rs 19.7 lakh crore in the year 2030, based on a latest report released in the market.
The flow of private equity has been an important factor in the segment and has risen from $500 million in the year 2011 to multi-billion-dollar amounts in the year 2019, making it more transparent and opening the way to REITs in India’s commercial real estate sector.
Retail continues to be an important driver of growth: Organised retail consumer spends are anticipated to touch Rs 8.8 lakh crore by FY25. The shopping centre segment (Rs 4.9 lakh crore), high street (Rs 3.8 lakh crore), and evolving formats such as airport and transit retail are giving rise to experience-driven destinations where shopping blends with lifestyle and leisure activities.
India's office space breaches the 1 billion sq ft mark and ranks as the 4th largest in the world. It gives investors a chance to venture into new sectors such as industrial parks, data centres, and hospitality properties through REITs while providing an average annual dividend yield of 5.5%.
India has five listed REITs, comprising a total of 177 million sq feet of commercial and retail space worth Rs 2.3 lakh crore, and more than 2.9 lakh unit-holders. Analysts say that the sector transforms due to urbanisation, advancements in technology and reform policies. A REIT offers a compelling investment option to reap rental and growth gains while sparing the investor the hassle of managing properties.
The rapidly evolving commercial real estate landscape is turning into a global, tech-savvy, and experience-based sector is expected to witness unexpected expansion in the REITs sector in India.
Posted By
Ruchi Mane
info@houssed.com
Ruchi Mane is the Senior Editor at Houssed, leading the platform’s real estate news coverage. She tracks trends in India’s luxury property market while overseeing editorial strategy, PR outreach, and social media communication.