New Delhi, Nov 27 (IANS) India’s Real Estate Investment Trust market could expand by Rs 10.8 trillion in gross asset value by 2029, with the office market accounting for about 65.3 per cent of it, a report said on Thursday.

India’s REIT market has achieved a landmark milestone in FY 2025, crossing the Rs 1 trillion market capitalization threshold, the report from consultancy JLL said.

The report said that REIT market capitalisation rose from Rs 264 billion in fiscal 2020 to Rs 1.6 trillion of September 30, 2025.

The sector has evolved from a single REIT managing 33 million sq ft in 2019 to five listed REITs collectively controlling 174 million sq ft of leasable office and retail space.

“India’s REIT sector has evolved from an emerging concept to a compelling investment vehicle. This remarkable 40 per cent CAGR trajectory across 6 years reflects increasing investor confidence in commercial real estate as an institutional asset class,” said Lata Pillai, Senior Managing Director & Head of Capital Markets, India, JLL.

The unit holding pattern reveals substantial increase in institutional holdings by mutual funds, insurance companies, pension funds, sovereign wealth fund, NBFCs etc. reflecting the market’s increasing maturity.

REITs’ share of Grade A office stock in India’s top seven cities grew to 15 per cent by June 2025 from 4.2 per cent in 2019.

Strong leasing fundamentals were evident with combined occupancy rates of office REITs reaching 91 per cent as of September 2025 of all four office REITs.

The convergence of institutional capital, regulatory support and substantial asset pipeline positions India’s REIT market for exponential growth over the next 5-7 years, making strategic positioning critical for market leadership, the report noted.

SEBI Chairman Tuhin Kanta Pandey earlier this month said that the markets regulator is actively studying whether Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) should be included in major market indices.

–IANS

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