India’s Real Estate Investment Trust (REIT) market has achieved a market capitalization of ₹1 trillion, according to JLL, a real estate management firm. The sector is anticipated to expand significantly, with projected growth reaching ₹10.8 trillion across the office and retail segments in India’s top seven cities by 2029.
Recent data indicates consistent improvements in Net Operating Income (NOI) across all three office REITs, underscoring the attractiveness of Indian office real estate as an investment category. During the fiscal year 2025, distribution yields for these REITs have ranged from 6% to 7%.
The maturation of the sector is evident in its evolving investor base. The REIT market in India has transitioned from an emerging concept to an appealing investment vehicle, with market capitalization increasing six-fold. Data on unit holding patterns show a significant rise in institutional investments from mutual funds, insurance companies, pension funds, sovereign wealth funds, and non-banking financial companies (NBFCs).
“India’s five REITs have approximately ₹230 billion in available borrowing capacity, considering a conservative 35% of the market value,” stated Lata Pillai, Senior Managing Director and Head of Capital Markets in India at JLL.
Performance metrics among individual REITs indicate robust growth. Nexus Select Trust REIT has recorded a compound annual growth rate (CAGR) of 6% in NOI since its listing in May 2023. Embassy REIT holds the highest absolute NOI throughout the analysis period, thanks to its larger portfolio and established market presence. Brookfield REIT has demonstrated remarkable growth, achieving a 31% CAGR in NOI, expanding from four assets at the time of its listing to a portfolio of eleven properties as of September 30, 2024.
Published on November 27, 2025.
