Indian REITs Surge Ahead: A Promising Future in Real Estate

Indian REITs are making waves in the global real estate market by delivering yields of 6-7%, surpassing international standards, according to a collaborative report from ANAROCK-CREDAI. Since the first listing in 2019, the sector has achieved a market capitalization of approximately USD 18 billion as of August 2025, with expectations to soar beyond USD 25 billion in the next four years, highlights the report.

Released today at the CREDAI NATCON in Singapore, the report, titled 'Indian REITS: A Gateway to Institutional Real Estate,' provides an in-depth analysis of the nation's REIT sector. REITs, or real estate investment trusts, refer to companies that own and manage properties to generate income, a definition that encapsulates India's burgeoning market led by key players in Grade A office spaces.

Although Indian REITs entered the stage later than global counterparts, they now dominate through strong fundamentals. With yields higher than those in the US and Singapore, the sector holds 60% of market value among a few dominant players. Future projections are promising; as urban areas expand, and the economy diversifies, REITs are set to foray into retail, logistics, and housing, offering vast opportunities for investors. Despite accounting for just 20% of institutional real estate compared to over 50% in Japan and Singapore, Indian REITs are poised for significant growth, potentially expanding to 25-30% by 2030.

(With inputs from agencies.)