Retail REITs in India could grow to ₹60,000–₹80,000 crore by 2030. What investors should know

Even as the Real Estate Investment Trust (REIT) ecosystem is currently dominated by commercial office assets, the next wave of growth can come from retail malls, shopping centres, and mixed-use developments, according to a report by ANAROCK Research.

The research estimates that the Indian retail REIT market can become a between ₹60,000- ₹80,000 crore market by 2030, comprising roughly 30-40% of India’s overall REIT market.

The overall REITs market is expected to touch USD 25 billion (₹2 lakh crore) by 2030.

Here are key points investors should know about the shift in REIT market as per the research.

What are REITs?

Like mutual funds, REITs pool money from many investors. REITs also trade on stock exchanges, offering liquidity and easy entry and exit for investors compared to physical real estate.

REITs are also regulated as per rules set by the Securities and Exchange Board of India (SEBI).

Who may invest?

Investors interested in income-generating real estate may explore investing in listed REITs. However, one should carefully examine the REIT and make investment decision only if it suits their financial goals and risk profile.

Driving factors behind retail REITs

The shift in REIT segment is driven by a consolidation of quality retail assets, steady consumer spending, and rising urban incomes.

At present, Nexus Select Trust is the only one retail-centric REIT in India out of the five listed REITs.

"However, with Grade A malls now maturing into stable, income-generating assets, 2-3 retail REITs are expected to launch over the next 3-5 years. Our estimate of the Indian retail REITs' potential to become a INR 60,000 – INR 80,000 crore market in the next five years assumes only partial listings of various institutional portfolios," said Anuj Kejriwal, CEO & MD, ANAROCK Retail.

The report says vital new entry of retail REITs into India's REIT universe will mirror the path of mature economies, where retail REITs form 15% to 25% of total REIT market capitalisation.

Tier-II cities such as Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh are witnessing the entry of institutional players for the first time, with mall developers like Phoenix Mills, Prestige Estates, and Nexus Malls expanding aggressively in these high-income, consumption-driven clusters.

The report says that new projects averaging 1-1.2 million sq. ft. are being planned, with entertainment, F&B, and lifestyle retail accounting for nearly half of new mall space.

As per ANAROCK Retail’s RELEAP H1 2025 report, the first half of the current year saw 2.8 million sq. ft. of mall space deployed across the top seven cities, which is 155% more than in 2024, when 1.1 million sq. ft. of supply was recorded.

The net absorption in malls was approximately 2 million Mn sq.ft, almost 31% more than that in the previous year. The absorption was predominantly driven by the apparel and F&B segments, which accounted for nearly 55% share of the total absorption.

Kejriwal said that across major cities, high streets are showing consistent rental appreciation, reflecting sustained demand for prime retail locations with high footfall and visibility characteristics.

"In contrast, mall rentals have largely remained stagnant in most cities, indicating a more cautious approach from retailers towards enclosed retail formats amid evolving market dynamics," he added.

ANAROCK Research has made following predictions about REITs for the next five years:

• Top 5 mall owners will control 60% of the overall organised stock

• New retail REITs will institutionalise the market further

• Wave of mixed-use redevelopment, with older malls repurposed into integrated lifestyle districts.

"Retail is no longer just an afterthought in Indian real estate portfolios. It is now edging closer to centre-stage, under the spotlight as a resilient, high-yield asset class which is finally ready for institutional scale and public markets," said Kejriwal.