NEW DELHI: India’s listed real estate investment trust (REIT) market capitalisation has grown more than six-fold to about ₹1.73 lakh crore in the first nine months of FY26, from ₹27,100 crore in FY20, according to a report by CBRE.
The growth comes after the listing of the first REIT in India in 2019 and reflects a combination of new listings and rising unit prices of existing REITs.
Currently, five REITs are listed on Indian stock exchanges, including Knowledge Realty Trust REIT, which debuted in August 2025. The report noted that the other four listed REITs recorded more than 20% year-on-year unit price growth between the third quarter of FY25 and the third quarter of FY26.
The report highlighted that regulatory changes and policy initiatives could further accelerate the growth of the REIT market in the coming years.
Among the key developments is the Securities and Exchange Board of India’s (SEBI) decision to reclassify REITs as equity-related instruments from January 1, 2026, which could allow greater participation from mutual funds and specialised investment funds that were earlier constrained by hybrid investment limits.
In addition, REITs are expected to be included in broader equity indices in July 2026, which may lead to higher passive investment flows into these instruments.
Another policy proposal likely to influence the sector is the Reserve Bank of India’s plan to allow commercial banks to lend directly to REITs, aligning them with the existing framework for infrastructure investment trusts (InvITs). The move could reduce borrowing costs for REIT platforms that currently rely largely on bond markets for funding.
The Union Budget 2026–27 has also proposed the creation of dedicated REIT structures for monetising commercial real estate assets owned by central public sector enterprises (CPSEs). The initiative is expected to bring additional institutional-grade assets into the REIT ecosystem.
Industry experts said these developments could expand the investor base and improve liquidity in the market.
According to CBRE estimates, the small and medium REIT (SM REIT) segment could also play a significant role in the next phase of growth. The consultancy estimates that the SM REIT opportunity in India could exceed $75 billion, supported by more than 500 million square feet of potential office, logistics and retail assets suitable for such structures.
