ANAROCK identifies India REITs as emerging alternative investment backed by policy support

Vikas Jain, President, NAREDCO Maharashtra NextGen, and Niranjan Hiranandani, Chairman Emeritus, NAREDCO Maharashtra, highlight investor confidence, regulatory support, and expansion opportunities in REIT sector

Mumbai, April 2, 2026: India’s Real Estate Investment Trust market is witnessing strong growth and emerging as a competitive investment avenue compared to Asian peers, according to a report by ANAROCK .
Titled “India REITs: Taking a Stride Building Momentum with Scale and Performance,” the report highlights how the sector is evolving into a mature asset class supported by regulatory reforms, operational performance, and increasing investor participation.

Indian REITs have delivered nearly 9 percent five year price returns, outperforming several regional markets, while maintaining distribution yields in the range of 5 to 6 percent. Portfolio occupancy levels have remained above 90 percent, supported by demand from global corporates across sectors such as technology, BFSI, and consulting.
The report notes that REITs accounted for over 20 percent of office leasing activity in the second quarter of FY26, reflecting continued demand for commercial real estate assets. Since listing, REITs have delivered capital gains ranging from approximately 12 percent to over 60 percent.

The introduction of Small and Medium REITs in 2025 has further expanded access to real estate investments, enabling retail participation through fractional ownership models and unlocking a potential monetisation opportunity of Rs 67,000 to Rs 71,000 crore.
Tax efficiency remains a key advantage, with regulatory requirements mandating distribution of at least 90 percent of net distributable cash flows. More than 65 percent of distributions are tax exempt, enhancing returns for investors.

Despite the progress, only about 32 percent of India’s REIT ready assets are currently listed, indicating significant room for expansion. The report also highlights diversification into emerging asset classes such as logistics parks, data centres, healthcare infrastructure, and residential real estate.
Vikas Jain, President, NAREDCO Maharashtra NextGen, said the sector is witnessing rising investor confidence, supported by platforms that bring together domestic and global stakeholders to explore investment opportunities.

Niranjan Hiranandani, Chairman Emeritus, NAREDCO Maharashtra, said India’s real estate sector is transitioning toward institutional capital structures, with REITs playing an important role in its evolution into a global asset class.
Introduced by SEBI in 2014, REITs have grown steadily in India, with five listed trusts currently managing over 176 million square feet of leasable area.

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