Office assets hold ₹5.9 trillion opportunity as India's REIT market expands
30 Jan 2026
With a large pool of commercial, retail, warehousing and data centre assets yet to be securitised, the REIT universe is set for a significant expansion in new listings over the next five to seven years, a report said.
India’s operational REIT market is currently valued at ₹2.3 trillion, comprising four listed office REITs and one retail REIT, according to a JLL report titled Emerging Horizons: Analyzing REIT Performance in India’s Evolving Real Estate Market. The report noted that high-quality, well-performing office assets alone represent an additional opportunity worth ₹5.9 trillion, indicating a potential fourfold growth for the office REIT segment.
With a substantial pool of real estate assets across commercial office, retail, warehousing, and data centre segments yet to be securitised, the REIT universe is expected to witness a significant expansion in new listings over the next five to seven years, the report said.
Beyond the office sector, retail REITs present compelling expansion prospects. Building on the success of India's operational retail REIT, the market opportunity for additional retail-focused REIT vehicles remains substantial. Across the top seven cities, large and mid-sized malls, along with high-quality neighbourhood retail formats, represent an attractive ₹2.8 trillion opportunity, it noted.
Additionally, 70 mn sq ft is under construction or planned supply combined across office and retail for the top seven cities where institutional participation already exists. This upcoming high-quality supply is currently valued at ₹2.1 trillion, the report said.
This growth runway of ₹10.8 trillion in GAV is further enhanced by Small and Medium REITs (SM REITs), which unlock an estimated ₹3.2 trillion in additional opportunities by enabling investments in partial assets, specifically targeting well-leased portions of multiple ownership properties that demonstrate strong overall management performance, it said.
Sebi's regulatory shift
In September 2025, the Securities and Exchange Board of India (Sebi) redesignated REITs as equity instruments in a strategic alignment with international standards, a decision that has garnered positive reception from industry stakeholders. This regulatory shift enables REIT inclusion in equity market indices while facilitating increased mutual fund allocations and expanding institutional investor access. It would help strengthen the market liquidity and diversify the investor base. The move aligns India with global practices, paving the way for future index inclusion and increased institutional investments, it added.