India’s REITs account for 19% of listed RE vs 57% globally
India’s REITs account for 19% of listed RE vs 57% globally
India’s Real Estate Investment Trust (REIT) market remains at a nascent stage, with REITs accounting for only 19 per cent of the country’s listed real estate value, compared to a global average of 57 per cent. While this gap highlights India’s relative under-penetration, it also signals substantial headroom for long-term growth as the market matures and diversifies, according to Vestian Research.
India currently has five listed REITs—four focused on office assets and one in the retail segment. The dominance of office REITs reflects the early stage of the ecosystem, as most other real estate asset classes are yet to achieve the scale, maturity, and institutional structure required for public REIT listings.
Talking to Bizz Buzz, Dr Prashant Das, Associate Professor (Finance & Accounting/Real Estate), IIMA, says, “REITs account for well under one per cent of India’s equity market, compared with about 3 per cent in the US, highlighting significant room for growth.”
But REITs are only part of the opportunity. SM-REITs could further broaden access to listed commercial real estate, deepening the market on both the supply and demand sides, he said.
Globally, REIT ecosystems are far more diversified. Markets such as the United States, Australia, Singapore, Japan, and the UK host multiple REIT categories spanning residential, healthcare, logistics, self-storage, data centres, and mortgage-backed platforms. In countries like the US and Australia, over 95 per cent of listed real estate value is held within REITs, underscoring the maturity and depth of these markets.
In comparison, India’s REIT market cap represents just 0.4 per cent of the total stock market, reinforcing its early-stage position but also highlighting the scale of untapped opportunity.
