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India's REIT Market Soars 6-Fold Post-COVID, Hits Rs 1.72 Lakh Crore

India's listed Real Estate Investment Trust (REIT) market has expanded more than six-fold since the pandemic, reaching Rs 1.72 lakh crore by the third quarter of FY26. This growth was ignited by the country's first REIT listing in FY20 and is supported by new listings and steady unit price appreciation. Key regulatory changes, including SEBI's reclassification of REITs and potential RBI lending rules, are expected to drive further adoption and liquidity. The upcoming Union Budget also outlines plans to monetize state-owned commercial assets through dedicated REIT structures, unlocking significant value.

Key Points: India's REIT Market Grows 6X to Rs 1.72 Lakh Crore: CBRE Report

  • 6-fold growth since FY20
  • Four REITs saw over 20% YoY price growth
  • SEBI reclassification to boost liquidity
  • RBI may allow direct bank lending
  • Budget 2026 plans CPSE asset monetization via REITs
2 min read

India's listed REIT market sees multifold growth post-COVID to Rs 1.72 lakh crore: Report

India's listed REIT market value surged from Rs 27,100 crore in FY20 to Rs 1.72 lakh crore by Q3 FY26, driven by new listings and strong returns.

"India's REIT market has delivered consistent returns to investors through a volatile global cycle. - Anshuman Magazine, CBRE"

New Delhi, March 13

Domestic-listed Real Estate Investment Trust market has expanded more than six-fold since FY20 -- a pandemic year -- growing from Rs 27,100 crore in 2019-20 to Rs 1.72 lakh crore in the first nine months of FY26, a report said on Friday.

As per the CBRE report, the sharp growth comes after the listing of the country's first REIT in FY20 and has been driven by new listings as well as steady unit price appreciation among existing REITs.

From the total listed REITs, four of them recorded more than 20 per cent year-on-year (YoY) unit price growth between Q3 FY25 and Q3 FY26.

"India's REIT market has delivered consistent returns to investors through a volatile global cycle," said Anshuman Magazine, Chairman and CEO for India, South-East Asia, the Middle East and Africa at CBRE.

The report also highlighted that three regulatory changes expected to support wider adoption of REITs in 2026 and beyond.

The Securities and Exchange Board of India's (SEBI) decision to reclassify REITs as equity-related instruments from January is expected to improve liquidity by enabling broader participation from mutual funds and specialised investment funds that were earlier restricted by hybrid investment limits, it said.

The report also pointed out that the sector may also benefit from the Reserve Bank of India's proposal to allow commercial banks to lend directly to REITs, which would align the framework with infrastructure investment trusts (InvITs).

Further, the Union Budget 2026-27 has outlined plans to monetise Central Public Sector Enterprise (CPSE) assets through dedicated REIT structures, potentially unlocking value from state-owned commercial real estate and offering investors access to sovereign-backed assets.

CBRE India Research has estimated that India's SM REIT market could exceed $75 billion, supported by more than 500 million square feet of eligible office, logistics and retail assets.

According to CBRE, the office sector REIT is the most preferred segment for capital allocation, with about 42 per cent of India-based respondents indicating willingness to invest.

Currently, five REITs are listed on Indian stock exchanges - the BSE and the NSE.

- IANS

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Reader Comments

P
Priya S
While the growth numbers look impressive, I hope the regulatory framework keeps pace. We need strong safeguards to protect retail investors. The CPSE asset monetization plan is interesting, but transparency in valuations will be key.
R
Rohit P
My father always said "Jameen sone ke baraabar hoti hai." Now with REITs, even middle-class families can have a piece of that gold. Started a small SIP in a REIT last year and the steady dividends are a nice addition to my salary. More power to such instruments!
M
Michael C
Working in Gurgaon, I see these Grade A office buildings every day. Good to know the sector behind them is maturing. The $75 billion potential is massive. Hope the growth is sustainable and not just a post-COVID bubble.
S
Shreya B
The focus seems heavily on commercial offices. What about residential REITs? Affordable housing is a huge need. If REITs can channel investment into that sector, it would be a true win-win for the economy and society.
K
Karthik V
As a CA, I've been advising clients to diversify into REITs. The yield is attractive compared to FDs, especially with the tax benefits on dividends. The RBI allowing bank lending will provide much-needed stability. Solid, long-term play.

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