Industry experts foresee a transformative phase for India's Real Estate Investment Trusts (REITs) as they expand beyond office assets into sectors like warehousing, logistics, hospitality, retail, and data centres. This growth could significantly enhance retail participation in the market.
India currently has five listed REITs with a combined market capitalisation of nearly Rs 1.7 lakh crore as of May 15, 2026, according to the Indian REIT Association. These REITs accounted for 26% of institutional real estate inflows in Q1 2026, highlighting their increasing importance in the investment ecosystem. Experts believe that REITs are becoming a crucial bridge between real estate and financial markets, addressing India's high cost of capital and supporting urbanisation and infrastructure needs.
Pratik Tibrewala, Senior Vice President & Head Corporate Finance at M3M, noted that REITs have evolved into a preferred monetisation route for stable income-generating assets and are now expanding into new sectors like logistics and data centres. Despite being one of Asia's largest real estate markets, India remains at an early stage of REIT penetration, with significant growth potential in scale, value, and asset diversity.
“REITs have emerged as a critical mechanism to address India’s high cost of capital while supporting the country’s long-term urbanisation and infrastructure needs.”
Pratik Tibrewala, Senior Vice President & Head Corporate Finance, M3M
Raunaq Arora and Maanu Dewan, founders of Ace Consulting, highlighted that India's REIT ecosystem is transitioning into a mainstream investment category. They expect three major trends to shape the next phase of growth: expansion beyond office assets, increased retail investor participation, and stronger institutional involvement. As India's Grade A office stock and income-generating assets grow, REITs could play a role similar to mature global markets by improving liquidity and transparency.
Pushpender Singh, Managing Director of JMS Group, emphasized that REITs have democratized access to real estate investments, making the sector more accessible and transparent. Manik Malik, CEO and President of BPTP, pointed out that regulatory developments like SM-REITs could further deepen retail participation.
“India’s REIT ecosystem is rapidly transitioning from an early-stage product into a mainstream investment category.”
Raunaq Arora & Maanu Dewan, Founders, Ace Consulting
Background
REITs were first introduced in the US during the 1960s to allow retail investors to participate in income-generating commercial real estate via stock exchanges. In India, REITs are listed on the NSE and BSE and regulated by SEBI, ensuring high levels of disclosure and transparency.
India's REIT market is at an inflection point, with rising investor awareness and stable yield expectations attracting both retail and institutional capital. As the commercial real estate market expands, REITs are poised to become a significant investment category in India's financial landscape.
