India’s REIT ecosystem has expanded to 174 million sq ft across five listed REITs by 2025, while it managed 33 million sq ft in 2019. Their share of the Class A office stock has increased from 4.2% in 2019 to 15% in June 2025 and the combined occupancy rate is 91%.REIT market capitalization has grown at 40% CAGR in six years, from Rs 26,400 crore in FY 2020 to Rs 1.6 lakh crore by September 2025.
The five REITs also have Rs 23,000 crore of untapped debt capacity at a conservative GAV ratio of 35%.
“India’s REIT sector has evolved from an emerging concept to an attractive investment vehicle… India’s five REITs have approximately Rs 23,000 crore of available lending capacity, considering a conservative 35% of market value. This gives them significant firepower to acquire premium real estate and expand their portfolios,” said Lata Pillai, Senior MD & Head of Capital Markets, India, JLL. (NOI) across the sector, Indian REITs are proving their worth as stable, income-generating instruments that provide investors with direct access to India’s booming commercial real estate market. “The pipeline of emerging institutional-grade offerings in the office and retail segments provides ready-made brownfield assets for portfolio growth. Looking ahead, we expect a potential five-fold market expansion over the next four years from the current GAV of Rs 2.1 trillion, with emerging asset classes also likely to create an increasingly diversified and accessible REIT ecosystem that appeals to a broader spectrum of investors,” said Samantak Das, chief economist and head of research and REIS, India, JLL.
Net operating income (NOI) growth has remained positive for all listed REITs. Embassy REIT maintains the highest absolute NOI, while Brookfield has posted a 31% CAGR and expanded its portfolio from four to eleven properties by September 2025. Embassy and Mindspace have shown steady growth from larger initial portfolios. Nexus Select Trust has posted a CAGR of 6% in NOI since its listing in May 2023, JLL India said.
Distribution returns ranged between 6% and 7% in FY 2025, with stable payouts in the first half of FY 2026. Total GAV across the four office REITs has grown at 40% CAGR from Rs 33,000 crore to Rs 2.1 lakh crore. Nexus has registered a 10% CAGR in GAV since listing. The office occupancy of listed REITs is 91%.
Institutional investments have risen sharply. Embassy REIT’s sponsorship interest has been reduced from 70% to 8%, while institutional ownership has increased to 75%. Nexus Select Trust’s institutional holdings have increased from 17% to 36% within a year.
SEBI’s decision in September 2025 to classify REITs as equity instruments is expected to support inclusion of indices and widen participation in mutual funds.
JLL estimates that the office and retail markets together offer a potential value of Rs 10.8 lakh crore, supported by 70 million sq ft under construction and planned supply worth Rs 2.1 lakh crore. With Rs 23,000 crore of available debt space, India’s five REITs have room to scale up through acquisitions as the sector enters a multi-year growth phase.
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