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India REITs Post 6–7% Yields as New Report Projects Market to Exceed $25 Billion by 2030

The study highlights a still office-heavy market with low penetration relative to global peers.

Overview

  • India’s REIT market is about $18 billion in size as of August 2025, according to the CREDAI–ANAROCK report unveiled at CREDAI NATCON in Singapore.
  • Average distribution yields of 6–7% outpace many mature markets such as the US and Singapore, with returns described as competitive with fixed-income instruments.
  • Penetration stands near 20% of institutional real estate versus 96% in the US, 55% in Singapore, and 51% in Japan, underscoring significant headroom for growth.
  • More than 60% of market value is tied to Grade A offices, and only about 166 million sq ft of roughly 520 million sq ft of REIT-quality office stock is currently listed.
  • Industrial, logistics and data-centre activity is accelerating—H1 2025 leasing rose 60% year on year, warehousing absorption increased 30%, and 2024 institutional investment tripled to $2.5 billion—amid regulatory tweaks that have reduced lot sizes, simplified capital gains, and adjusted dividend taxation.