India REIT Market Overtakes Hong Kong at Rs 1.66 Trillion
Real Estate

India REIT Market Overtakes Hong Kong at Rs 1.66 Trillion

India’s Real Estate Investment Trust (REIT) sector has rapidly transformed into a mainstream capital markets powerhouse, with gross asset value touching around Rs 2.3 trillion within six years of its inception. According to a report by ANAROCK Capital, the equity market capitalisation of listed Indian REITs reached approximately Rs 1.66 trillion as of 30 September 2025, surpassing the scale of the Hong Kong REIT market despite only about 32 per cent of India’s REIT-eligible stock being listed.

Following the August 2025 listing of Knowledge Realty Trust, India now has five listed REITs collectively controlling nearly 176 million sq ft of Grade A office and retail assets, along with a hospitality portfolio of over 2,000 keys across major metro and select Tier II markets.

Since the first REIT listing in 2019, the sector has expanded across Bengaluru, NCR, Mumbai Metropolitan Region, Hyderabad, Pune and Chennai, providing diversified exposure to technology, BFSI, consulting and retail-led office corridors. Mandatory distribution of at least 90 per cent of net distributable cash flows has positioned REITs as efficient yield vehicles, offering investors access to institutional-grade commercial real estate without the constraints of direct ownership.

Performance metrics underline the sector’s resilience. Indian REIT indices have delivered a five-year annualised price return of about 8.9 per cent, outperforming peers in Singapore, Japan and Hong Kong. In Q2 FY26 alone, distributions rose nearly 70 per cent year-on-year to around Rs 2,331 crore, while trailing yields remained stable in the 5.1–6.0 per cent range.

Portfolio fundamentals remain strong, with committed occupancies between 90 and 96 per cent and re-leasing spreads of 20–36 per cent. All five REITs maintain AAA credit ratings, conservative leverage levels of 18–31 per cent, and long debt maturities, supporting stable cash flows and visible net operating income growth.

A major regulatory catalyst is set to further broaden the investor base. The reclassification of REIT units as equity-related instruments by Securities and Exchange Board of India, effective 1 January 2026, is expected to enable index inclusion and higher mutual fund participation. This shift is widely seen as a turning point that could propel India’s REIT market into its next phase of growth, strengthening its position within global real estate capital markets.

India’s Real Estate Investment Trust (REIT) sector has rapidly transformed into a mainstream capital markets powerhouse, with gross asset value touching around Rs 2.3 trillion within six years of its inception. According to a report by ANAROCK Capital, the equity market capitalisation of listed Indian REITs reached approximately Rs 1.66 trillion as of 30 September 2025, surpassing the scale of the Hong Kong REIT market despite only about 32 per cent of India’s REIT-eligible stock being listed. Following the August 2025 listing of Knowledge Realty Trust, India now has five listed REITs collectively controlling nearly 176 million sq ft of Grade A office and retail assets, along with a hospitality portfolio of over 2,000 keys across major metro and select Tier II markets. Since the first REIT listing in 2019, the sector has expanded across Bengaluru, NCR, Mumbai Metropolitan Region, Hyderabad, Pune and Chennai, providing diversified exposure to technology, BFSI, consulting and retail-led office corridors. Mandatory distribution of at least 90 per cent of net distributable cash flows has positioned REITs as efficient yield vehicles, offering investors access to institutional-grade commercial real estate without the constraints of direct ownership. Performance metrics underline the sector’s resilience. Indian REIT indices have delivered a five-year annualised price return of about 8.9 per cent, outperforming peers in Singapore, Japan and Hong Kong. In Q2 FY26 alone, distributions rose nearly 70 per cent year-on-year to around Rs 2,331 crore, while trailing yields remained stable in the 5.1–6.0 per cent range. Portfolio fundamentals remain strong, with committed occupancies between 90 and 96 per cent and re-leasing spreads of 20–36 per cent. All five REITs maintain AAA credit ratings, conservative leverage levels of 18–31 per cent, and long debt maturities, supporting stable cash flows and visible net operating income growth. A major regulatory catalyst is set to further broaden the investor base. The reclassification of REIT units as equity-related instruments by Securities and Exchange Board of India, effective 1 January 2026, is expected to enable index inclusion and higher mutual fund participation. This shift is widely seen as a turning point that could propel India’s REIT market into its next phase of growth, strengthening its position within global real estate capital markets.

Next Story
Real Estate

Modon, Related, Panepinto form JV for Harborside 4 in Jersey City

Abu Dhabi-based Modon Holding PSC has formed a joint venture with US real estate major Related Companies and Jersey City-based Panepinto Properties to develop Harborside 4, a 54-storey luxury residential tower on a prime waterfront site in downtown Jersey City, New Jersey.Under the partnership, Modon will hold a majority equity stake alongside Related and Panepinto, marking another step in the group’s strategy to scale and diversify its global real estate portfolio. The project will be developed on one of the last remaining premium waterfront parcels in the city.Designed by Handel Architects..

Next Story
Infrastructure Urban

P+Ex and Post-Tensioning Institute partner to drive sustainability

P+Ex, the Center of Excellence for Concrete Preservation and Service Life Extension, has announced a strategic partnership with the Post-Tensioning Institute (PTI) aimed at advancing sustainability, durability, and resilience in the built environment.The collaboration brings together P+Ex’s expertise in concrete preservation, repair, and service life extension with PTI’s global leadership in post-tensioning technology. Through this alliance, the two organisations will work to advance best practices in durability-focused design for new structures, while also promoting effective repair, reha..

Next Story
Infrastructure Energy

India’s Largest 2,000 MW Subansiri Hydro Project Turns Operational

India’s largest hydropower project, the 2,000 MW Subansiri Lower Hydroelectric Project, has finally become operational with the commissioning of its first unit, marking a major milestone after nearly 20 years of development marked by delays, protests and cost escalation.The 250 MW Unit-2 of the project, located on the Subansiri River at Gerukamukh on the Assam–Arunachal Pradesh border, was virtually inaugurated from New Delhi by Union Minister of Power Manohar Lal Khattar. The event was attended by Pankaj Agarwal, Secretary (Power), and Bhupender Gupta, Chairman and Managing Director, Nati..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App