India’s REIT Market Gains Strong Momentum, Outpaces Asian Peers on Returns and Growth Potential: ANAROCK Report

Mumbai, April 2, 2026: India’s Real Estate Investment Trust (REIT) market is witnessing robust growth, emerging as a compelling investment alternative not only domestically; but also, against its Asian peers.
According to the latest report titled ‘India REITs: Taking a Stride - Building Momentum with Scale & Performance’ released by ANAROCK on the sidelines of EXCELERATE 2026, a finclave organized by NAREDCO Maharashtra NextGen, the sector is rapidly evolving into a mature and high-performing asset class driven by strong fundamentals, regulatory support and increasing investor confidence. The report has further stated that the introduction of Small and Medium REITs (SM REITs) in 2025 further enabled real estate investment, facilitating retail participation through fractional ownership model and expected to unlock a monetisation opportunity of Rs 67,000 to Rs 71,000 crore.
The report stresses on India’s growing competitiveness against the Asian markets, as it has already achieved scale comparable to mature hubs like Hong Kong. Further, as per the report, Indian REITs have delivered superior five-year price returns of nearly 9%, outperforming several regional counterparts and also distribution yields remaining competitive at 5 - 6%.
Operational performance continues to be a highlight of India’s REIT success story, observes the report. Portfolio occupancy levels across Indian REITs have remained consistently above 90%, comprising global corporates from sectors such as technology, BFSI, consulting, and telecommunications.  Remaining upbeat about the leasing momentum, the report highlights that REITs capturing over 20% of pan-India office leasing activity in Q2 FY26 showed healthy re-leasing spreads and mark-to-market rental moving upside further signalling sustained income growth potential. Since their respective listings, REITs have delivered capital gains ranging from approximately 12% to over 60%, alongside consistent distribution yields, observes the report.
Tax efficiency is another significant advantage enhancing the attractiveness of REITs in India. Also, the REITS are appealing to income - focused investors, as regulatory mandates require them to distribute at least 90% of their net distributable cash flows and coupled with more than 65% of REIT distributions are tax-exempt in the hands of investors, significantly boosting post-tax returns.  
The report anticipates a promising growth trajectory for India’s REIT market with the fact that currently, only about 32% of India’s REIT-worthy assets are listed leaving opportunities for expansion.  Furthermore, diversification into emerging asset classes such as logistics parks, data centres, healthcare infrastructure and residential real estate is set to broaden the REIT investment landscape for growth and yield generation. The report positions Indian REITs as a rapidly maturing asset class based on strong operational fundamentals, financial stability, tax efficiency, and sustainability leadership offering both domestic and international investors a compelling value proposition.
Introduced by Securities and Exchange Board of India (SEBI) in 2014, REITs were designed to formalise and democratise real estate investments in India offering liquidity, diversification and stable income streams. India currently has five listed REITs spanning premium commercial office and retail assets, collectively managing over 176 million square feet of leasable area. Since the first REIT listing in 2019, the sector has expanded steadily, supported by strong institutional participation and progressive regulatory reforms. 
NAREDCO Maharashtra NextGen, an arm of NAREDCO Maharashtra organised EXCELERATE 2026, a one-day international conclave aimed at bringing together global and domestic stakeholders to deliberate on the future of real estate investment and financing in India. 
Talking about this Finclave, Vikas Jain, President, NAREDCO Maharashtra NextGen said, “India’s real estate sector has undergone a remarkable transformation over the past decade. Investor confidence, both domestic and international, is at an all-time high. Platforms like EXCELERATE 2026 will play a critical role in bringing together global and domestic stakeholders to exchange ideas, explore capital partnerships and accelerate the next phase of growth for Indian real estate.”
Dr Niranjan Hiranandani, Chairman Emeritus, NAREDCO Maharashtra, said, “India’s real estate sector is at an inflection point, with urbanization set to rise from 35% to nearly 50% by 2047, fundamentally reshaping demand and development patterns. The industry has already transitioned from reliance on family funding to more institutionalized capital through private equity and REITs and is steadily evolving into a global asset class.”
EXCELERATE 2026 featured a series of high-level panel discussions focusing on emerging capital sources, investment strategies and future asset classes in real estate. Key sessions will include Family Offices – The Emerging Capital Pool for Indian Real Estate, Private Equity in Real Estate – Deals, Distress and Deployment, Sustainability in Real Estate – Finance, Incentives & ROI, Data Centres in India – Finance, Policy & Infrastructure Readiness, Branded Residences – The Next Frontier in Indian Real Estate and REITs & InvITs – Unlocking Institutional & Retail Capital.