NEW DELHI: The market capitalization of India’s listed real estate investment trusts (REITs) has surged over six times to approximately ₹1.73 lakh crore in the first nine months of FY26, up from ₹27,100 crore in FY20, as reported by CBRE.
This growth follows the introduction of India’s first REIT in 2019, driven by new listings and an increase in unit prices of existing REITs.
Currently, five REITs are listed on Indian stock exchanges, including Knowledge Realty Trust REIT, which launched in August 2025. The report indicates that the other four REITs experienced over 20% year-on-year unit price growth between Q3 FY25 and Q3 FY26.
The report emphasized that regulatory changes and policy initiatives could further boost the REIT market in the upcoming years.
Significant developments include SEBI’s decision to classify REITs as equity-related instruments starting January 1, 2026. This change may encourage more participation from mutual funds and specialized investment funds previously limited by hybrid investment restrictions.
Moreover, REITs are anticipated to be integrated into larger equity indices by July 2026, potentially increasing passive investment inflows into these instruments.
Another influential policy proposal is the Reserve Bank of India’s plan to allow commercial banks to provide direct loans to REITs, similar to the framework for infrastructure investment trusts (InvITs). This shift could lower borrowing costs for REITs, which currently depend on bond markets for funding.
The Union Budget for 2026-27 has also suggested establishing dedicated REIT structures for monetizing commercial real estate assets owned by central public sector enterprises (CPSEs). This initiative is expected to introduce additional institutional-grade assets into the REIT ecosystem.
Industry experts believe that these developments may broaden the investor base and enhance market liquidity.
According to CBRE’s estimates, the small and medium REIT (SM REIT) sector could significantly contribute to future growth. The consultancy projects that the SM REIT opportunity in India may exceed $75 billion, supported by over 500 million square feet of suitable office, logistics, and retail assets.
