Bengaluru dominates India’s REIT stock; market seen expanding into new asset classes

Bengaluru accounts for 63.6% of India’s listed Real Estate Investment Trust (REIT) stock, followed by Hyderabad at 30.6% and Mumbai at 29.4%, according to a report by Credai and Anarock. Supported by attractive yields of 6–7%, steady rental escalations and potential capital appreciation, Indian REITs remain highly competitive compared with global peers.

As Indian cities expand, infrastructure improves and the economy diversifies, the REIT market is expected to broaden beyond office assets into retail, logistics, housing and new-age asset classes. This evolution is likely to unlock new opportunities for investors and reinforce India’s position as one of the most dynamic REIT markets globally, the report said.

With a wider range of assets becoming REIT-able, India’s REIT penetration could rise to 25–30% of institutional real estate by 2030, placing it among the fastest-growing REIT markets worldwide, according to the report, Indian REITs: A Gateway to Institutional Real Estate, by Credai and Anarock Capital.

As the sector expands into logistics, warehousing, retail, and data centres, India’s favourable demographics, rapid urbanization, and steady GDP growth will further strengthen its appeal for institutional capital. The combination of regulatory confidence, market depth, and growth potential positions REITs to play a pivotal role in shaping the future of the country’s real estate landscape, the report said.

Industrial REITs gain momentum globally; India ready to mirror trend

Globally, industrial REITs are gaining traction driven by sustained e-commerce growth, supply chain re-optimisation and rising last-mile logistics demand, supporting long-term rental growth and capital appreciation. Data centre REITs valued at around $250 billion in 2024 and projected to double over the next seven years are also expanding rapidly, fuelled by cloud adoption, AI-driven workloads and increasing hyperscale infrastructure requirements.

India is well placed to replicate this momentum. Industrial and logistics leasing rose 60% year-on-year in the first half of 2025, while warehousing absorption increased 30%. Institutional investment in the segment also tripled to $2.5 billion in 2024, the report said.

With a broader range of assets becoming REIT-able, India’s REIT penetration could rise to 25–30% of institutional real estate by 2030, positioning the country among the fastest-growing REIT markets globally, the report noted.