New Delhi, December 22 (IANS). India’s Real Estate Investment Trust (REIT) sector is now growing rapidly. The total asset value of India’s REITs has reached nearly Rs 2.3 lakh crore, a report on Monday said. With this, India has also left behind the REIT market of Hong Kong.
According to a report by Anarock Capital, the market cap of REITs in India is expected to reach around Rs 1.66 lakh crore by September 30, 2025, which is more than that of Hong Kong, while only 32 per cent of eligible assets in India are currently listed as REITs.
Indian REITs have given an average return of more than 8.9 percent every year over the last 5 years. This return has been better than countries like Singapore, Japan and Hong Kong, whereas in many developed countries the returns during this period were low or negative.
Shobhit Agarwal, CEO, Anarock Capital, said, “REITs performed well in Q2FY26 and remained strong despite interest rate rises and market volatility. The prices of the four REITs listed so far have gained 25-61 per cent, while the recently listed Knowledge REIT has already gained about 12 per cent.”
According to the report, due to increase in per unit price and regular income, investors have earned good earnings of 5.1 to 6 percent in the last one year. India’s five REITs together distributed Rs 2,331 crore in the second quarter of FY 2026, which is 70 percent more than last year.
Vishal Singh, MD, Investment Banking, Anarock Capital, said that due to the participation of more investors and the expectation of inclusion in big indices, the sector may soon cross the market cap of $ 20 billion.
According to the rules, REITs have to give at least 90 percent of their earnings to investors, due to which common people and big investors are easily able to invest in big office buildings.
The report also said that REIT offices are approximately 90 to 96 percent filled. REITs accounted for more than 20 percent of the total office rents across India in the second quarter of the financial year 2025-26, which shows that this sector is rapidly strengthening.
–IANS
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