Housing Demand to Surge as REIT Market Targets Rs 10.8 Trillion

The​‍​‌‍​‍‌​‍​‌‍​‍‌ Indian Real Estate Investment Trust (REIT) market is expected to grow exponentially with a staggering expansion of Rs 10.8 trillion by 2029, as per a report released by JLL. The office and retail sectors will primarily be responsible for such an upsurge in the market.

At the same time, this trend is likely to have a considerable impact on the housing and urban infrastructure sectors that will benefit from institutional capital inflows, which are reshaping the real estate markets of major cities.

Key Highlights

• REIT market poised for a Rs 10.8 trillion expansion by 2029.
• Growth in offices and retail expected to boost housing demand in major cities.
• SEBI reforms and strong investor confidence set up a five-fold market surge.

As India’s REIT market is anticipated to surpass Rs 1 trillion in market capitalisation in FY25 and grow exponentially from Rs 26,400 crore in FY20 to Rs 1.6 trillion by September 2025, the sector’s swift institutionalisation is creating new opportunities for residential absorption in the key metros.

Currently, the listed REITs have control over 174 million sq ft spread over five portfolios, thus stimulating the demand for quality housing in areas of high employment. The high occupancy levels at 91%, are, therefore, playing a major role in strengthening the residential sectors around the office clusters of prime locations.

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Investor confidence is still very much alive and robust, as evidenced by the 40% CAGR over six years, continuous NOI growth, and stable distribution yields of 6–7%, among others.

The rise in REIT involvement in commercial assets from 4.2% to almost 15% of Grade A stock has had a positive effect on developers who are now more engaged in the residential, retail, and hospitality segments of the master-planned communities, apart from the core commercial segment.