India’s Real Estate Investment Trust (REIT) market has entered a new phase of maturity, highlighted by a strong second quarter in FY26. The country’s five listed REITs together distributed more than Rs. 2,331 crore to over 3.3 lakh unitholders between July and September, reinforcing the asset class’s reputation for steady income and financial transparency.
At a time when global real estate markets are wrestling with volatility, the performance of Indian REITs stands out for its consistency. The total gross Assets Under Management for the sector now stands at an estimated Rs 2.35 lakh crore, a scale that reflects both investor confidence and the sector’s rapid expansion over the past five years.
India’s REIT landscape today comprises Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust and the newly listed Knowledge Realty Trust, which entered the public markets on 18 August 2025. The addition of this fifth player marks an important milestone for the segment, signalling broader sectoral participation and deepening capital-market interest.
Industry leaders see this momentum as a sign of structural strength rather than a temporary spike. According to Alok Aggarwal, Managing Director and CEO of Brookfield India Real Estate Trust and Chairperson of the Indian REITs Association, the quarter’s performance demonstrates the transparency and resilience that REITs bring to India’s capital markets. He said the arrival of the fifth listed REIT underlines the growing faith of both investors and sponsors in the model. With consistent distributions, expanding portfolios and rising market capitalisation, REITs are emerging as key vehicles for democratising real estate investment in the country.
Since their inception, India’s listed REITs have distributed more than Rs 26,700 crore to unitholders. This cumulative payout reflects an important change in India’s financial culture: everyday investors now have a liquid, regulated way to participate in institutional-grade real estate—an option previously limited to large developers, global funds or high-net-worth individuals.
The portfolios managed by these five REITs span over 176 million square feet of Grade A office and retail developments across major cities. These assets include business parks that house global capability centres, IT firms, financial services players and domestic corporates—anchoring the country’s expanding services economy. For Nexus Select Trust, the only retail-focused REIT in India, the portfolio includes some of the country’s top-performing shopping centres.
Beyond the steady rental income these assets generate, the underlying quality and occupancy rates have played a major role in sustaining investor trust. India’s office market, particularly in cities like Bengaluru, Hyderabad and Pune, continues to experience healthy absorption from technology companies, GCCs and new-age firms. This provides a stable foundation for REIT cash flows even in uneven macroeconomic cycles.
An equally telling indicator of growth is the combined market capitalisation of all five listed REITs, which crossed Rs 1.6 lakh crore as of 14 November 2025. This rise in value shows how REITs have evolved from a niche instrument into a recognised alternative investment category. Their growing weight on Indian exchanges is expanding the depth of the country’s capital markets and offering investors a more diversified basket of long-term assets.
The growth of the sector has been supported by the Indian REITs Association (IRA), a non-profit body backed by SEBI and the Ministry of Finance. The organisation works with regulators, industry participants and global investors to strengthen governance, improve market standards and expand awareness around the asset class. All five listed REITs are members of the Association.
The rise of REITs is also reshaping how real estate developers think about their portfolios. For large commercial landlords, the REIT route provides an organised, transparent way to unlock value from income-generating assets while continuing to manage and expand them. It also brings global institutional norms—on disclosure, ESG, asset quality and operational standards—more firmly into the Indian market.
For investors, the appeal lies in stable distributions, lower entry barriers, liquidity and the chance to own a share in premium office or retail assets. For policymakers, REITs offer a way to deepen financial participation and channel global capital into infrastructure-adjacent, employment-generating sectors.
With the latest quarter delivering strong numbers, India’s REIT ecosystem appears well-positioned for its next phase of growth. More listings, larger portfolios and deeper investor participation are likely to define the road ahead, turning REITs into a central pillar of the country’s commercial real estate landscape and a growing force in its capital markets.
