The report, titled “Commercial Real Estate: Potential is Built, Opportunity is Now,” highlights that India’s commercial real estate (CRE) sector stands at a transformative juncture — where high occupancy, policy reforms, and diversification across asset classes are unlocking massive institutional opportunities.

India’s CRE Sector: From Promise to Performance

India’s CRE market is maturing into a globally competitive investment destination, driven by:

• Expansion of office, retail, and warehousing sectors
• Increasing participation of private equity and REIT investors
• Favourable policy reforms and a surge in foreign capital inflows

India’s total office market stock has surpassed one billion sq. ft. in 2025, making it the fourth largest globally, with a total market value estimated at ₹16.4 trillion. The office sector has maintained a long-term compound annual growth rate (CAGR) of 8.6%, reflecting resilience and sustained investor appetite.

REIT Market Outlook: ₹19.7 Trillion by 2030

• India currently has five listed REITs, covering around 177 million sq. ft. of office and retail space worth approximately ₹2.3 trillion.
• The market is supported by over 290,000 unitholders, with an average annual dividend yield of 5.5%, positioning REITs as reliable income-generating investments.
• By 2030, the total REIT-able market — including office, retail, and warehousing sectors — is projected to touch ₹19.7 trillion, underscoring the expanding institutional depth of Indian real estate.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said:
“India’s CRE transformation is led by businesses that are more global, technology-driven, and experience-focused. As India heads toward a USD 7 trillion economy, commercial real estate will play a critical role in powering productivity and attracting global investment.”

Office REITs: The Growth Engine

• Only 15.3% of total office stock across India’s top eight cities — including Mumbai, NCR, Bengaluru, and Hyderabad — is currently under REITs.
• The value of REIT-able office assets is expected to double from ₹8.2 trillion in 2025 to ₹16 trillion by 2030.
• The Global Capability Centres (GCCs) segment and sustainable workspace demand are the key occupier drivers for this growth phase.

Retail REITs: Organized Retail Gains Institutional Traction

India’s retail sector is witnessing a revival backed by strong consumer spending:

• Organized retail consumption is estimated at ₹8.8 trillion in FY2025, led by:
  • Shopping Centres – ₹4.9 trillion
  • High Streets – ₹3.8 trillion
  • Airport Retail – ₹0.1 trillion
• Retail REIT-able assets are expected to rise from ₹1.5 trillion in 2025 to ₹2.4 trillion in 2030.
• The shift toward experience-driven, lifestyle-based retail formats is attracting institutional capital, particularly as malls and mixed-use spaces evolve into lifestyle hubs.

Private equity inflows into retail real estate have touched USD 500 million year-to-date (2025), signalling renewed investor confidence.

Warehousing and Industrial REITs: Logistics Drives Next-Gen Growth

• Warehousing and logistics leasing reached 32.1 million sq. ft. in H1 2025, driven by e-commerce and 3PL expansion.
• India’s top eight warehousing markets now hold 220.9 million sq. ft. of Grade A stock.
• The REIT/InvIT potential value of warehousing assets could grow from ₹0.7 trillion in 2025 to ₹1.3 trillion by 2030.

Viral Desai, Senior Executive Director, Knight Frank India, noted:
“With office stock crossing 1 bn sq. ft. and retail consumption nearing ₹9 trillion, we are witnessing a maturing CRE cycle driven by sustainability, foreign capital, and investor confidence.”

Data Centres: India’s Fastest-Growing CRE Asset Class

• India’s total data centre capacity has now exceeded 10 GW, including 1.4 GW operational and 8.8 GW in pipeline.
• Growth is fuelled by AI adoption, 5G rollout, cloud infrastructure, and data localisation requirements.
• The report calls for a national policy framework to address power reliability, renewable sourcing, and workforce development to sustain growth.

Industry Perspective: CRE as the Economic Backbone

Neel Raheja, Chair, CII National Committee on Real Estate & Housing, and Group President, K Raheja Corp, said:
“India’s commercial real estate is no longer a promise — it’s performance. As the sector matures, it will anchor investment flows, employment, and urban transformation across the country.”

Conclusion

India’s commercial real estate sector stands at an inflection point — evolving from a growth story into one of enduring institutional depth, global relevance, and sustainability.
With REITs scaling up, retail formalizing, and digital infrastructure expanding, the sector is set to become a core driver of India’s $7 trillion economic ambition by the end of the decade.

Also Read: Data Benchmarking Institutions Launched to Empower Indian REIT Investors

The post India’s REIT Market to Touch ₹19.7 Trillion by 2030, Driven by Office, Retail and Warehousing Growth appeared first on Square Feat India.