India's REIT Market Set to Nearly Double by 2030, Driven by Office, Retail, and Warehousing Growth
India’s Real Estate Investment Trust (REIT) market is poised for a massive growth trajectory, projected to nearly double from ₹10.4 trillion in 2025 to ₹19.7 trillion by 2030, according to a recent Knight Frank India report in collaboration with the Confederation of Indian Industry (CII). This remarkable surge will be powered by strong occupancy rates, investor-friendly tax reforms, and expanding REIT participation in emerging asset classes, including industrial parks, data centres, and hospitality sectors.
Growth Drivers: Office, Retail, Warehousing
The report highlights that India’s commercial real estate (CRE) landscape is entering an expansive growth phase fueled by surging demand in office spaces, retail expansions, and the formalization of warehousing, alongside a rise in institutional investments. Private equity inflows have dramatically increased from just $500 million in 2011 to multi-billion-dollar levels by 2019, enhancing transparency and accelerating REIT adoption.
Office REITs dominate a significant share, accounting for 15.3% of total office stock across India’s top eight cities. The value of REIT-eligible office assets is expected to almost double from ₹8.2 trillion in 2025 to ₹16 trillion by 2030. This growth is primarily driven by Global Capability Centres (GCCs), technology companies, and domestic enterprises seeking premium, sustainable workspaces. India’s office market has surpassed the 1 billion sq. ft. mark in 2025, becoming the fourth largest globally with a valuation of ₹16.4 trillion.
Retail REITs are emerging as another robust growth avenue. Out of 66 million sq. ft. of Grade A retail stock, only 7.3 million sq. ft. is currently under REIT structures. However, this is projected to expand significantly, with REIT-eligible retail assets increasing from ₹1.5 trillion in 2025 to ₹2.4 trillion by 2030. The organized retail consumption market is estimated at ₹8.8 trillion for FY2025, with shopping centres and high streets leading the charge alongside innovative formats like airport and transit retail. Apparel, food, and beverage categories dominate retail sales, accounting for more than half of total mall and high street sales.
Warehousing, Industrial, and Data Centres Emerging Strong
Warehousing stands out as one of India’s fastest-growing CRE segments, facilitated by booming e-commerce and third-party logistics. The top eight warehousing markets hold 220.9 million sq. ft. of Grade A stock, presenting substantial scope for REIT institutionalization. Leasing activity alone in the first half of 2025 reached 32.1 million sq. ft. The valuation of warehousing and industrial REIT/Infrastructure Investment Trust (InvIT) assets is expected to grow from ₹0.7 trillion in 2025 to ₹1.3 trillion by 2030. This sector is also witnessing sustainable development with technology-enabled, green logistics parks adhering to ESG (Environmental, Social, and Governance) standards to attract long-term capital.
Data centres represent the newest high-potential segment, now recognized as India’s fastest-growing commercial real estate asset class. With a total capacity exceeding 10 GW, including 1.4 GW operational and 8.8 GW under development, the sector is primed for exponential growth, supported by advancements in AI, 5G, cloud computing, and data localization policies.
Future Outlook
The Knight Frank–CII report emphasizes that while office and retail sectors currently attract the bulk of institutional capital, the next wave of growth will come from industrial REITs and data centre infrastructure. India’s commercial real estate has transitioned from promise to performance, with REITs scaling up rapidly. Moving forward, the focus will need to be on enhancing quality supply, sustainability commitments, and adopting global-standard asset management practices to sustain this momentum and unlock the sector’s full potential.
This rapid growth offers an exciting opportunity for investors to capitalize on India’s evolving real estate landscape and the country’s path towards a $7 trillion economy powered by robust commercial real estate development.