The Real Estate Investment Trust (REIT) market in India has achieved a significant milestone, reaching a valuation of USD 17.7 billion. This represents a notable increase of 62 per cent from USD 11 billion at the close of 2024. The latest figures indicate that India has overtaken Hong Kong for the first time, positioning itself as the fourth-largest REIT market in Asia.

As of June 2026, the Indian REIT sector consisted of seven REITs, which included two small and medium REITs (SM REITs). Collectively, these six main REITs managed around 178 million square feet of listed portfolio space, with an additional 36.7 million square feet either under construction or in the planning stages. This expansion is anticipated to further bolster the market.

Recent listings have played a vital role in this growth, with Knowledge Realty Trust and Bagmane Prime Office REIT contributing approximately 53.7 million square feet of new space. Together, these listings accounted for about three-fourths of all new space added by the six Indian REITs between June 2025 and June 2026.

Market Dynamics and Demand Drivers

According to Somy Thomas, Executive Managing Director of Capital Markets at Cushman & Wakefield, India’s REIT sector has reached a critical turning point. He noted that the market is characterised by larger listed portfolios, strong occupancy rates, and a healthy pipeline for development. These factors collectively enhance the institutional depth of the market.

Thomas also highlighted the continuous demand from multinational companies and Global Capability Centres (GCCs), which are increasingly favouring high-quality, professionally managed office spaces. Recent regulatory changes have broadened the investor base and improved access to financial resources, which bode well for future growth.

The report indicates high occupancy rates within the office REIT segment, despite a decline in available Grade A spaces. This ongoing demand from multinational firms, along with the expansion of GCCs, is recognised as a strong support for the market’s resilience and growth potential.

Broader Regional Context and Future Prospects

As of March 31, 2026, the broader Asian REIT sector included a total of 289 active REIT products, boasting a combined market valuation of USD 279.4 billion. This marks an 18 per cent increase from a valuation of USD 235.8 billion at the end of 2024. The growth of India’s REIT market is part of a larger trend observed throughout the region.

Catherine Chen, Research Director for Asia Pacific at Cushman & Wakefield, suggested that both India and mainland China are expected to be significant growth contributors to Asia’s REIT landscape moving forward. Investors are anticipated to place greater emphasis on aspects such as income resilience, operational efficiency, environmental, social, and governance (ESG) performance, and the capacity of managers to generate value through active asset management.

Overall, the growth trajectory of India’s REIT market underscores the promising potential for further expansion, driven by strong demand and strategic initiatives within the sector. With the backing of favourable market conditions, the outlook for continued development is optimistic.

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