REITs Market Projected To Reach Rs. 19.7 Tn By 2030: Report

India’s commercial real estate sector is standing at one of its most defining moments. What was once an industry built on potential is now moving decisively into performance. From offices and retail spaces to data centres and logistics hubs, the country’s built environment is evolving rapidly, mirroring India’s own economic transformation.

A new report by Knight Frank India, in collaboration with the Confederation of Indian Industry (CII), titled Commercial Real Estate: Potential is Built, Opportunity is Now, captures this shift in tone and tempo. Unveiled at the CII Conference on the Evolving Landscape of Indian Real Estate, the report presents a sector poised to power the next chapter of India’s growth story.

A Market Coming of Age

The numbers tell a clear story of maturity and momentum. India’s Real Estate Investment Trust (REIT) market, still relatively young is expected to nearly double in size from INR 10.4 trillion in 2025 to INR 19.7 trillion by 2030. That expansion, Knight Frank notes, will be driven by stable occupancy levels, transparent governance, and broader inclusion of new asset classes beyond traditional office and retail segments.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, says the change is structural. “India’s CRE transformation is being led by businesses that are more global, technology-driven and experience-focused than ever before,” he explains. “As India heads toward a USD 7 trillion economy, commercial real estate will play an essential role in powering productivity, attracting investment and building next-generation urban centres.”

Over the last decade, private equity inflows have turned from cautious experiments into sustained participation. Investments that stood at about USD 500 million in 2011 had swelled to multi-billion-dollar levels by 2019, improving transparency and deepening institutional confidence. This shift laid the foundation for India’s growing REIT market—turning high-quality assets into liquid, income-generating instruments accessible to a wider pool of investors.

Office REITs: The Institutional Push

India is now the world’s fourth-largest office market, valued at around INR 16.4 trillion (USD 186 billion). It recently crossed the symbolic milestone of one billion square feet of office space in 2025. Yet, only 15 percent of this stock currently sits within REIT structures, leaving significant room for institutional growth.

Demand from Global Capability Centres (GCCs) and India-facing businesses continues to be a key driver. The report notes that the value of REIT-able office assets could grow from INR 8.2 trillion in 2025 to INR 16 trillion by 2030, almost doubling within five years. Developers and investors alike are focusing on premium, green-certified workspaces that align with evolving ESG (environmental, social, and governance) standards and offer operational efficiency.

However, the path forward is not without challenges. Several top developers have shifted focus to residential projects for higher margins, creating a supply crunch in the office segment. To reach the next milestone (two billion square feet) the sector will need policy incentives, joint ventures, and greater public-private collaboration. Retrofitting older assets and repurposing SEZ (Special Economic Zone) spaces could unlock new capacity while promoting sustainability.

Retail: Experience at the Core

The revival of India’s retail real estate is another pillar of this transformation. Organised retail consumption is expected to reach INR 8.8 trillion in FY 2025, led by shopping centres (INR 4.9 trillion) and high streets (INR 3.8 trillion), with newer segments like airport and transit retail adding another layer of opportunity.

Even though 90 percent of India’s retail market remains unorganised, the growth trajectory is shifting toward formal, experience-led spaces. Shoppers are no longer seeking just products—they’re seeking experiences that combine leisure, community, and culture. As malls evolve into lifestyle destinations and high streets retain local loyalty, investors are finding new ways to participate in India’s consumption boom.

Retail REITs, still in their infancy, are seen as the next frontier. Currently, just 7.3 million sq ft of Grade A retail stock is under REITs—barely a fraction of the total 66 million sq ft available. But as consumption rises, this gap offers vast institutional headroom. The total value of REIT-able retail assets is expected to grow from INR 1.5 trillion in 2025 to INR 2.4 trillion by 2030.

Private equity inflows into retail real estate have already touched USD 500 million in 2025, after two cautious years. Developers are expanding into Tier 2 and Tier 3 cities with smaller, more agile shopping centre formats. Smart mall management systems, digital engagement tools, and energy-efficient operations are increasingly becoming standard practice.

India’s retail story, the report notes, is no longer about square footage—it’s about evolution. “As consumers seek more immersive, meaningful, and value-driven experiences, the sector is redefining how space, experience, and community come together,” the report observes.

Warehousing and Industrial: Building the Backbone

Behind the scenes of India’s consumption story lies another engine of growth, warehousing and industrial real estate. Fuelled by e-commerce, third-party logistics (3PL), and a rapidly digitising supply chain, India’s warehousing sector leased over 32 million sq ft in the first half of 2025 alone.

The top eight warehousing markets now hold over 220 million sq. ft of Grade A stock. As these facilities become more technology-driven and ESG-aligned, they are attracting serious institutional interest. Knight Frank estimates that warehousing and industrial REITs (or InvITs, Infrastructure Investment Trusts) could expand from INR 0.7 trillion to INR 1.3 trillion by 2030.

These assets not only represent physical storage but the logistical arteries of India’s new economy, where efficiency, speed, and sustainability are as valuable as location.

Data Centres: The Digital Frontier

If there’s one asset class growing faster than the rest, it’s data centres. As India embraces 5G, artificial intelligence, and cloud computing, demand for digital infrastructure is soaring. The country’s total data centre capacity has now crossed 10 GW, with 1.4 GW operational and another 8.8 GW in the pipeline, a sevenfold rise in the making.

But growth will depend on managing power availability, energy efficiency, and sustainability. The report calls for coordinated policy frameworks, renewable energy adoption, and skill development to sustain the momentum. In essence, data centres represent India’s chance to leapfrog traditional models and adopt a cleaner, smarter energy footprint—positioning the country as a major digital hub for Asia.

The Road Ahead

Neel Raheja, Chair of the CII National Committee on Real Estate & Housing, describes this period as “a defining chapter in India’s economic journey.” As he puts it, “Commercial real estate will play a pivotal role in shaping investment flows, employment, and urban transformation. The time to seize this opportunity is now.”

Indeed, with structural reforms, global capital, and technological adaptation aligning in its favour, India’s commercial real estate sector appears ready to move from a growth story to a story of institutional depth and resilience.

Viral Desai, Senior Executive Director at Knight Frank India, sums it up neatly, “India’s commercial real estate has moved from promise to performance. The real opportunity now lies in converting this built momentum into long-term, inclusive economic value.”

In other words, the foundations are laid, the structures are built, and the future, quite literally, is under construction.