India's Real Estate Investment Trusts (REITs) market has achieved a significant milestone, with the combined market capitalization of the four listed REITs surpassing ₹1 lakh crore as of July 30, 2025. This landmark reflects growing investor confidence and the increasing maturity of the REIT ecosystem in India. The four publicly listed REITs – Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust – collectively manage assets under management (AUM) exceeding ₹1.63 lakh crore and operate over 128 million square feet of Grade A office and retail space across key urban centers.
Since their debut in 2019, Indian REITs have distributed over ₹22,800 crore to unitholders, highlighting their growing appeal among both institutional and retail investors. This achievement underscores the sector's resilience and its potential to enhance liquidity, benefiting both issuers and investors in the REIT market. The rise in market capitalization has been supported by sustained investor interest, healthy occupancy levels across underlying properties, consistent distributions to unitholders, and enabling regulatory reforms.
The Indian REITs Association has stated that this milestone signals greater depth and liquidity in the REIT market, making it an attractive and efficient investment vehicle for those seeking stable, income-generating assets. Alok Aggarwal, MD & CEO of Brookfield India Real Estate Trust, noted that this achievement demonstrates the sector's resilience and maturity.
As REITs continue to scale and attract long-term capital, their growing market capitalization is expected to further enhance liquidity, benefiting issuers through improved access to capital and investors through increased trading volumes and tighter spreads. According to Q4 FY25 data, India's REIT market manages gross Assets Under Management (AUM) exceeding ₹1.63 lakh crore. The four REITs collectively operate over 128 million square feet of Grade A office and retail real estate across India's key urban centers.
The potential for growth in the REIT market is significant, with expectations of expansion into various asset classes beyond office spaces, including industrial properties, data centers, hospitality, healthcare, and education. Policy measures also support the REIT market's growth, especially in India, where over 50% of Grade A office stock is deemed REIT-worthy.
Looking ahead, India is poised to witness the listing of at least four new REITs, which will enhance the quality of assets available and attract investments from retail and institutional players. The timing of these listings will depend on the performance of the stock markets. The introduction of Small and Medium REITs (SM REITs) by SEBI will further facilitate fractional ownership of real estate, making it more accessible to a broader range of investors. SM REIT units are traded on the stock exchange, similar to regular REITs, and are regulated by SEBI to ensure a structured framework for their operation and investment, protecting investor interests.
The financial year 2024-2025 was a strong one for India's office REITs, with the three office REITs collectively garnering leasing volumes of more than 16 million sq ft, accounting for close to a fifth of the gross leasing volume across the top eight cities in the country. REIT assets have managed to attract a considerable share of demand from global capability centers (GCCs), which is an important growth driver for India's office markets. As of June 2025, the Indian REIT market comprised three office REITs and one retail REIT, collectively managing an operational portfolio of over 105 million sq. ft.
