Indian REITs outperform Singapore, Japan and Hong Kong with 8.9% five-year returns: Anarock
30 Jan 2026
Indian REITs outperform Singapore, Japan and Hong Kong with 8.9% five-year returns: Anarock
Indian Real Estate Investment Trust (REIT) indices have delivered a five-year annualised price return of around 8.9%, significantly outperforming peers in markets such as Singapore, Japan and Hong Kong, many of which have posted negative or low single-digit returns over the same period, a report by Anarock has said.
The REIT sector has reached a gross asset value of approximately ₹2.3 lakh crore, surpassing Hong Kong’s REIT market in terms of market capitalisation, the report said. The equity market capitalisation of India’s listed REITs now stands at about ₹1.66 lakh crore.
This rapid expansion has taken place in just six years since India’s first REIT listing. With only about one-third of the country’s REIT-ready real estate stock monetised so far, the sector still has substantial headroom for future growth, it noted.
In just six years, India’s Real Estate Investment Trust (REIT) sector has evolved from a policy experiment into a mainstream asset class commanding a gross asset value (GAV) of ₹2.3 lakh crore, the report by Anarock Capital titled ‘India REITs- Taking a Stride’ has said.
In the second quarter of FY26 alone, the five REITs distributed over ₹2,331 crore, nearly 70% higher year-on-year, driven by higher occupancies, new asset additions and the impact of the latest listing. Over the past five years, Indian REITs have delivered an annualised price return of approximately 8.9%, outperforming their peers in Singapore, Japan, and Hong Kong, the report said.
Operationally, portfolios are running at near-optimal levels, with committed occupancies of 90–96%, and the sector accounts for over a fifth of India’s gross office leasing in the quarter, it noted.
The report highlighted strong operating fundamentals across India’s listed REITs, with re-leasing spreads in the range of 20–36% and a mark-to-market upside of about 15–24% on in-place rents, providing clear visibility for net operating income growth over the next three to four years. It also noted that the sector is backed by fortress balance sheets, as all five REITs carry AAA ratings from CRISIL and maintain conservative leverage, with loan-to-value ratios ranging from 18% to 31%, reflecting prudent financial management and balance sheet strength.
Why REITs?
India has traditionally relied on investment avenues such as bank deposits, gold, physical real estate and government-backed schemes for wealth creation. While bank deposits offered safety and predictable returns, real estate remained a preferred asset class due to its tangible nature and long-term appreciation potential. However, direct property investment involves high capital outlays, ongoing costs and significant liquidity constraints. At the same time, large-scale infrastructure and real estate development have faced funding challenges, underscoring the need for alternative investment channels.
To provide structured, transparent avenues for investing in alternative assets, the Securities and Exchange Board of India (SEBI) introduced Real Estate Investment Trusts (REITs) in 2014 and Infrastructure Investment Trusts (InvITs) in 2016. These frameworks align India with global practices and are designed to attract long-term capital into critical sectors while offering investors access to income-generating assets.
With the listing of Knowledge Realty Trust in August 2025, India now has five listed REITs that collectively control around 176 million sq ft of Grade-A office and retail space, highlighting the growing scale and institutional depth of the country’s REIT market.