Indian REITs deliver 6-7% yields, surpassing global benchmarks: Report
Despite REIT guidelines being introduced in 2014 and the first listing only in 2019, Indian REIT market accounts for just 20% of institutional real estate, far below the USA (96%) or even Asian peers like Singapore (55%) and Japan (51%).
Indian REITs deliver about 6-7 per cent yields, surpassing global benchmarks, according to a joint report by ANAROCK-CREDAI. Since the 1st REIT listing in 2019, the sector has reached a market capitalisation of approximately $18 billion as of August 2025.
With three more REITs expected over the next four years, India is projected to cross $25 billion in market capitalisation, the joint report has asserted.
The report ‘Indian REITS: A Gateway to Institutional Real Estate’ by official knowledge partner ANAROCK Capital and CREDAI, unveiled today at the CREDAI NATCON in Singapore, examines the Indian REIT landscape in fine detail.
As per the definition, REITs, or real estate investment trusts, can be described as a company that owns and operates real estate to generate income. Shobhit Agarwal, CEO – ANAROCK Capital, said, “Indian REITs are late to the party, but now lead the dance. Despite its late entry compared to global peers, India has strong fundamentals. The distribution yields, currently averaging at 6-7 per cent, are well above many mature markets such as the US and Singapore, among others.”
Shekhar Patel, President, CREDAI, noted that over 60 per cent of India’s REIT market value today rests with very small set of players, with a strong base in Grade A offices linked to IT and BFSI.
“The future, however, holds far wider promise. As India’s cities grow, infrastructure strengthens, and the economy diversifies, REITs will expand into retail, logistics, housing, and new-age assets. This transformation will unlock unprecedented opportunities for investors and firmly place India among the most dynamic REIT markets in the world,” Patel added.
Despite REIT guidelines being introduced in 2014 and the first listing only in 2019, Indian REIT market accounts for just 20 per cent of institutional real estate, far below the USA (96 per cent) or even Asian peers like Singapore (55 per cent) and Japan (51 per cent). In developed markets like the USA and Singapore, dividends from REITs are generally taxed at lower rates, making them more attractive for retail investors compared to India, it opined.
This limited penetration is largely because Indian REITs are so far concentrated in Grade A commercial office assets, which offer scale, transparency and stable cash flows.
As the market matures, diversification is expected through data centres and logistics REITs, supported by rising digital demand and e-commerce growth, while retail mall REITs may follow with ongoing consolidation, the report noted.
With more asset classes becoming REITable, India’s penetration could potentially rise to 25-30 per cent of institutional real estate by 2030, positioning it as one of the fastest-growing REIT markets globally, it added.
Published on September 12, 2025
