New Delhi, 22 December. India’s Real Estate Investment Trust (REIT) sector is rapidly advancing. According to a report released on Monday, the total asset value of India’s REIT market has reached nearly ₹2.3 lakh crore. This growth has enabled India to surpass Hong Kong’s REIT market in terms of market capitalisation.
As per the Anarock Capital report, by 30 September 2025, India’s REIT market cap reached about ₹1.66 lakh crore, exceeding that of Hong Kong. Currently, only 32 percent of eligible assets in India are listed under REITs.
Over the past five years, Indian REITs have delivered an average annual return of more than 8.9 percent. This performance is better than that of Singapore, Japan, and Hong Kong, while many developed countries have seen lower or even negative returns during the same period.
Shobhit Agrawal, CEO of Anarock Capital, said, “In the second quarter of FY 2026, REITs performed well and remained resilient despite rising interest rates and market fluctuations. The prices of the four listed REITs have increased between 25 to 61 percent, while the recently listed Knowledge REIT has already gained nearly 12 percent.”
The report highlights that investors earned good returns of 5.1 to 6 percent in the last year, driven by an increase in per unit value and steady income. In the second quarter of FY 2026, five Indian REITs collectively distributed ₹2,331 crore, marking a 70 percent increase compared to the previous year.
Vishal Singh, Managing Director of Investment Banking at Anarock Capital, stated that with growing investor participation and prospects of inclusion in major indices, the sector could soon cross a market cap of $20 billion.
According to regulations, REITs must distribute at least 90 percent of their earnings to investors, enabling both retail and institutional investors to invest in large office properties easily.
The report also notes that office spaces under REITs have an occupancy rate of 90 to 96 percent. In the second quarter of FY 2025-26, REITs accounted for over 20 percent of total office leasing across India, indicating the sector’s strengthening position.
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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.
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