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.