Mumbai (Maharashtra) [India] November 27 (ANI): India's Real Estate Investment Trust (REIT) market is on the brink of a massive expansion, with a potential Rs 10.8 trillion growth opportunity emerging across office and retail segments over the next four years, noted a report by real estate and investment management company JLL.

'The REIT sector positioned for an additional Rs 10.8 trillion (USD 122-125 billion) expansion opportunity across office and retail sectors in just India's top seven cities by 2029,' the report says.

The report adds that the office segment alone is expected to account for more than 65 per cent of this projected expansion, underscoring the sector's accelerating institutionalisation.

JLL noted that India's REIT market has crossed a major milestone in FY25, breaching Rs 1 trillion in market capitalisation, within just six years of the first REIT listing. Market cap has grown from Rs 26,400 crore in FY20 to Rs 1.6 trillion as of September 2025, marking a six-fold rise.

Since 2019, the total space managed by listed REITs has shot up from 33 million sq ft to 174 million sq ft across five REITs, reflecting the growing depth of India's commercial real estate market. Current occupancy across office REITs stands at an impressive 91 per cent.

JLL's Senior Managing Director & Head of Capital Markets, Lata Pillai, said the sector's 'remarkable 40 per cent CAGR trajectory over six years' demonstrates rising investor confidence. She added that the five REITs collectively have Rs 23,000 crore in untapped borrowing capacity, giving them the ability to acquire premium assets and expand portfolios significantly.

The report highlights consistent Net Operating Income (NOI) growth across all listed REITs, even as global markets navigated post-pandemic challenges. India REITs can eye an addition...

Distribution yields remained in the 6-7 per cent range through FY25, continuing steadily into the first half of FY26.

The share of REITs in Grade A office stock across India's top seven cities has surged from 4.2 per cent in 2019 to roughly 15 per cent by June 2025, reflecting rapid institutionalisation.

A major boost came with SEBI reclassifying REITs as equity instruments in September 2025, enabling index inclusion and wider mutual fund participation.

JLL's Chief Economist Dr. Samantak Das, noted that the Indian REIT ecosystem could see a five-fold expansion over the next four years, backed by investment-grade office assets worth USD 66-68 billion and retail opportunities of USD 32-33 billion across the top seven cities.

'Looking forward, we anticipate a potential 5-fold market expansion in the next 4 years from the current GAV of INR 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 Das.

With the combined Gross Asset Value (GAV) of REITs at Rs 2.1 trillion, the report suggests the market is only at the beginning of a 'multi-year growth cycle' fuelled by institutional capital, regulatory reforms and an expanding asset pipeline. (ANI)