Mumbai. India’s Real Estate Investment Trust (REITs) market is witnessing tremendous growth, rapidly emerging as an attractive investment option not only domestically but also compared to its Asian counterparts.
According to ANAROCK’s latest report released during the Finclave ‘Accelerate 2026’ organized by NAREDCO Maharashtra NextGen in Mumbai, the sector is rapidly evolving into a mature and high-performing asset class due to strong infrastructure, regulatory support and growing investor confidence. The report also said that the introduction of Small and Medium Rights in 2025 has further enabled real estate investment, facilitating retail participation through the ‘Fractional Ownership’ model. This makes Rs. 67,000 to Rs. It is expected to open up monetization opportunities worth Rs 71,000 crore.
The report highlights India’s growing competitiveness vis-à-vis Asian markets, as it has achieved scale comparable to mature centers such as Hong Kong. Additionally, Indian Rets have delivered strong 5-year value returns of around 9%, which is better than many regional countries, with their distribution yields remaining competitive between 5-6%.
According to the report, operational performance remains the highlight of the success story of India’s RITS. Portfolio occupancy levels in Indian REITs have consistently been above 90%, with global companies from sectors such as technology, banking and financial services, consulting and telecom. While being positive about the leasing pace, the report shows that the share of RITS in all-India office leasing activity in Q2FY26 was more than 20%.
Tax exemption is another major reason increasing the attractiveness of RITS. As per regulatory rules, it is mandatory for REITs to distribute at least 90% of their net distributable cash flows. Additionally, more than 65% of distributions grow tax-free in the hands of investors, significantly enhancing after-tax returns.
The report forecasts a bright future for India’s RITS market as only 32% of India’s ‘RETS-eligible’ properties are currently listed, leaving huge scope for expansion. Expansion into emerging sectors such as logistics parks, data centres, healthcare and residential real estate will further broaden the investment landscape.
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