India’s retail REITs set to become ₹60,000–80,000 crore market by 2030

India’s retail real estate sector is quietly preparing for its next big leap — from being a consumption story to becoming a listed, institutional asset class. According to ANAROCK Research, the Indian retail REIT (Real Estate Investment Trust) market has the potential to touch between ₹60,000 crore and ₹80,000 crore by 2030, translating to about 30–40% of India’s overall REIT market, which is expected to cross $25 billion (₹2 lakh crore).

The numbers signal a structural transformation: malls are no longer just shopping venues but are being recognised as stable, income-generating investment assets—much like office parks were a decade ago.

From Office to Retail: A Shift in REIT Composition

Since India’s first REIT listing in 2019, the market has been dominated by office assets, with four of the five listed trusts — Embassy, Mindspace, Brookfield, and DLF’s Nexus Select Trust — focused on commercial real estate. The only retail-focused REIT so far, Nexus Select Trust, has already demonstrated steady performance metrics, validating investor appetite for organised retail exposure.

"Grade A malls are now maturing into stable, income-generating assets, supported by consistent tenant demand and rising footfalls," said Anuj Kejriwal, CEO & MD, ANAROCK Retail. "We expect 2–3 new retail REITs to launch over the next 3–5 years. Our estimate assumes only partial listings of institutional portfolios, which means the upside could be even higher."

Globally, retail REITs account for 15–25% of total REIT market capitalisation in mature economies such as the US, Singapore, and Australia. India, analysts say, is now entering that phase where consumption-backed real estate is robust enough for public markets.

Consolidation and Institutional Ownership on the Rise

The momentum is underpinned by a sharp consolidation of high-quality mall portfolios. Large developers such as Phoenix Mills, Nexus Malls (Blackstone), DLF, K Raheja, and Pacific collectively operate more than 45 million sq. ft. of retail space across major Indian cities.

Phoenix Mills, with a portfolio of around 11 million sq. ft., and Nexus Malls, with 10 million sq. ft. across 14 cities, are leading the charge. Both have attracted institutional investors and are expanding aggressively into new consumption hubs.

This growing concentration of institutional-grade assets marks a key shift — from fragmented ownership to portfolio-scale management, a necessary condition for REIT viability. “Institutional capital is now focused on curated, experience-led retail spaces rather than just square footage,” said a senior retail advisor at ANAROCK. “This aligns perfectly with how REIT investors view long-term, yield-generating assets.”

Tier-II Cities: The New Consumption Frontier

The next growth story may not come from Mumbai or Bengaluru, but from Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh. These Tier-II cities, long viewed as secondary markets, are now witnessing strong urban consumption growth, higher disposable incomes, and the entry of national and global retail chains.

Developers like Phoenix Mills, Prestige Estates, and Nexus Malls are expanding their footprints beyond metros, building new large-format malls averaging 1–1.2 million sq. ft. each. Nearly half of this new space is dedicated to entertainment, F&B, and lifestyle retail — categories that drive repeat visits and higher dwell time, making them attractive for long-term REIT inclusion.

"These cities are seeing a virtuous cycle — organised retail drives consumption, which in turn supports stable rental yields," said Kejriwal. "That makes them ideal for institutional capital participation."

Demand-Supply Dynamics: A Post-Pandemic Rebound

The first half of 2025 alone saw 2.8 million sq. ft. of new mall supply across India’s top seven cities — a 155% jump compared to 2024. Net absorption hit 2 million sq. ft., up 31% year-on-year, led primarily by apparel and F&B, which together accounted for 55% of total leasing.

These figures indicate not just demand recovery but also a qualitative evolution — from volume-driven development to experience-driven curation. As malls evolve into mixed-use destinations featuring entertainment zones, co-working areas, and leisure spaces, they are becoming steady, diversified revenue platforms attractive to REIT investors.

Rental Trends: High Streets Still Lead, but Malls Catching Up

Across India’s major metros, high streets continue to witness strong rental growth due to limited supply and visibility-driven demand. However, analysts point out that mall rentals, while stable, are beginning to rise selectively — particularly in locations with differentiated tenant mixes and strong brand anchors.

"High streets are leading on rentals, but the real play for REITs lies in structured, high-yielding mall portfolios,” said Kejriwal. “Institutional investors prefer predictable cash flows, and top-tier malls are now delivering just that."

Outlook: From Consumption to Capital Market Play

ANAROCK expects that over the next five years, the top five mall owners will control nearly 60% of India’s organised retail stock, paving the way for REIT-level transparency and governance standards. The market is also likely to see redevelopment of older malls into mixed-use lifestyle districts, blending retail, hospitality, and entertainment.

For investors, this could mark the beginning of a new REIT cycle, offering diversification beyond office assets and exposure to India’s consumption economy.

"Retail is no longer a peripheral play in real estate," Kejriwal summed up. "It is moving to centre stage — a resilient, high-yield asset class ready for institutional scale and public markets."

As Indian consumers spend more and developers consolidate quality assets, retail REITs are set to emerge as the next growth engine — turning India’s shopping malls into not just lifestyle destinations, but also powerful financial assets.Read about our editorial guidelines and ethics policy