India’s real estate market is gearing up for a major retail revolution. For years, the Real Estate Investment Trust (REIT) ecosystem has been dominated by commercial office spaces — but the next big wave is set to come from shopping malls, mixed-use developments, and retail destinations.
According to new estimates by ANAROCK Research, India’s retail REIT market could grow to ₹60,000–80,000 crore by 2030, accounting for nearly 30–40% of the country’s total REIT market, projected to touch USD 25 billion (₹2 lakh crore) in the same period.
🧭 Why This Matters
For investors, developers, and retail enthusiasts, this marks the start of a significant transformation. REITs offer a structured way to invest in income-generating real estate, and with malls now maturing into stable assets, the retail REIT story is about to unfold at scale.
🏗 India’s Retail REIT Landscape: Key Highlights
- Current REIT mix: Out of five listed REITs in India, four are office-focused. Only Nexus Select Trust focuses on retail.
- Market share projection: Retail REITs could account for 30–40% of India’s REIT market by 2030.
- Global comparison: In mature markets, retail REITs form 15–25% of total REIT market capitalization.
- Upcoming launches: 2–3 retail REITs expected over the next 3–5 years, driven by Grade A malls becoming stable income-generating assets.
- Institutional expansion: Developers like Phoenix Mills, Prestige Estates, and Nexus Malls are moving aggressively into Tier-II cities.
“Our estimate of the Indian retail REITs’ potential assumes only partial listings of various institutional portfolios. This is just the beginning,” said Anuj Kejriwal, CEO & MD – ANAROCK Retail.
🏙 Who’s Leading the Mall Game
Here’s a snapshot of some of India’s top retail real estate players:
- Nexus Malls (Blackstone) – Owns 19 malls with ~10 million sq. ft. leasable area across 14 cities, including Mumbai, Pune, and Bengaluru.
- Phoenix Mills – 12 malls, ~11 million sq. ft. across 8 cities.
- DLF (including DCCDL) – 8 malls, ~4 million sq. ft. in NCR.
- K Raheja – 5 malls, ~3 million sq. ft. in the MMR region.
- Pacific & Lakeshore – 14 malls combined, ~6 million sq. ft. across NCR and MMR.
🌆 Tier-II Cities: The New Hotspots
India’s retail story is no longer limited to metros. Cities like Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh are witnessing their first wave of institutional mall development, backed by rising urban incomes and consumption power.
New projects averaging 1–1.2 million sq. ft. are in the pipeline, with entertainment, food & beverage, and lifestyle retail making up nearly half of new spaces.
📈 Strong Demand-Supply Momentum
The first half of 2025 saw 2.8 million sq. ft. of mall space deployed across the top 7 cities — a massive 155% jump over 2024.
- Net absorption: 2 million sq. ft. (↑31% YoY)
- Key drivers: Apparel and F&B segments (55% of total absorption)
“High-value consumption categories are gaining traction, which is shaping how developers plan their tenant mix,” added Kejriwal.
🛍 High Streets vs Malls: A Changing Rental Landscape
- High streets in major cities are seeing steady rental appreciation, reflecting strong demand for visible, high-footfall spaces.
- Malls, on the other hand, have largely seen stagnant rentals, with retailers being selective and cautious about enclosed formats amid evolving consumer behavior.
🔮 The Next 5 Years: What to Expect
ANAROCK predicts a transformative half-decade ahead for retail REITs:
- Top 5 mall owners will control 60% of organized retail stock.
- New retail REITs will institutionalize the sector, bringing more investors in.
- Older malls will be repurposed into mixed-use lifestyle districts, merging retail with work, entertainment, and leisure.
“Retail is no longer an afterthought in Indian real estate portfolios. It’s now edging closer to centre-stage as a resilient, high-yield asset class ready for public markets,” summarised Kejriwal.
Also Read: Data Benchmarking Institutions Launched to Empower Indian REIT Investors
