India's listed REIT market cap surges over six-fold to INR 1,726 billion between FY20 and 9MFY26

India's listed Real Estate Investment Trust (REIT) market has grown from INR 271 billion in 2019-20 (FY20), when the first REIT was listed on the stock exchanges, to INR 1,726 billion in the first nine months of FY26, underscored by the CBRE India Real Estate Investment Market Outlook 2026 report. This upward momentum represents a more than six-fold expansion in under six years, driven by new listings as well as consistent unit price growth among existing REITs.

Currently, five REITs are listed on Indian stock exchanges, including the most recent addition, Knowledge Realty Trust REIT, which listed in August 2025. The report highlights that the other four REITs delivered more than 20% Y-o-Y unit price growth between Q3FY25 and Q3FY26.

“India's REIT market has delivered consistent returns to investors through a volatile global cycle,” said Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE. “The listing of these instruments can provide flexible exit options for key investors, potentially driving a wave of institutional participation and deepening market liquidity. The structural reforms now taking shape are likely to significantly expand the segment’s investor base in the coming years.”

The report further identifies three regulatory changes that are expected to broaden the market adoption of REITs in 2026 and beyond:

SEBI’s reclassification of REITs as equity-related instruments (effective 1 January 2026) acts as a liquidity catalyst, enabling broader participation from mutual funds and SIFs previously constrained by hybrid limits; the instrument’s inclusion in wider equity indices this July is poised to further attract significant passive inflows.
The sector stands to benefit from the RBI’s proposal to permit commercial banks to lend directly to REITs. This harmonisation with the existing InvIT framework is expected to rationalise borrowing costs—previously reliant largely on bond markets—thereby enhancing balance sheet flexibility and fostering distributable cash flow growth.
The Union Budget 2026-27 has articulated a strategic intent to monetise Central Public Sector Enterprise (CPSE) assets through dedicated REIT structures. This initiative is expected to unlock value from state-owned commercial real estate, offering institutional investors access to high-quality, sovereign-backed assets.

Rami Kaushal, Managing Director, Consulting & Valuation Services, India, Middle East & Africa, CBRE, said, "As the regulatory framework evolves to enable broader equity market participation and lower the cost of capital for REIT platforms, we expect the pace of portfolio expansion and new listings to accelerate. Moreover, the SM REITs segment is adding another layer of maturity to the market.”

CBRE India Research estimates that India’s SM REIT market could exceed USD 75 billion, supported by over 500 million sq. ft. of eligible office, logistics, and retail assets.

According to CBRE's 2026 Asia Pacific Investor Intentions Survey, the office sector, the primary REIT asset class in India, is the most-preferred sector for capital allocation, with approximately 42% of India-based respondents indicating a willingness to invest. Value-add strategies are identified as the most favoured investment approach, followed closely by core-plus, reflecting a market that has matured from simple acquisition to active asset management.