New Delhi, March 13: India’s listed Real Estate Investment Trust (REIT) market has seen remarkable growth following the COVID-19 pandemic. According to a report by CBRE, the market size surged from ₹27,100 crore in FY 2020 to ₹1.72 lakh crore in the first nine months of FY 2026.
The growth began when the country’s first REIT was listed on the stock market in FY 2020. This was followed by new REIT listings and a consistent increase in the unit prices of existing REITs, contributing to the market’s rapid expansion.
The report indicates that four of the listed REITs recorded an annual growth of over 20% between Q3 FY 2025 and Q3 FY 2026. Anshuman Magazine, Chairman and CEO of CBRE (India, Southeast Asia, Middle East, and Africa), stated that despite global economic instability, India’s REIT market continues to provide investors with attractive returns.
Additionally, the report highlights three significant regulatory changes aimed at enhancing the use of REITs in 2026 and beyond.
The first change involves the Securities and Exchange Board of India (SEBI), which has decided to classify REITs as equity-linked investment instruments instead of hybrid instruments starting January. This is expected to increase participation from mutual funds and special investment funds, thereby improving market liquidity.
The proposal from the Reserve Bank of India (RBI) could also benefit the sector by allowing commercial banks to lend directly to REITs, aligning this framework with Infrastructure Investment Trusts (InvITs).
Furthermore, the central budget for 2026-27 includes plans to monetize the assets of Central Public Sector Enterprises (CPSEs) through REITs. This will reveal the value of government-owned commercial real estate assets and provide investors with opportunities to invest in government-backed assets.
According to CBRE India Research, India’s small and medium REIT market could exceed $75 billion, driven by over 500 million square feet of office, logistics, and retail properties.
The report also notes that the office sector is the most preferred segment for REIT investments, with nearly 42% of Indian investors expressing interest in this area.
Currently, five REITs are listed on India’s stock exchanges, BSE and NSE, offering investors a new avenue for real estate investment.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Leave a Comment