India's Retail REIT Market Set to Surge to ₹80,000 Crore by 2030 as Institutional Interest Grows

Property consultancy firm Anarock has projected that India's retail real estate investment trusts could emerge as a ₹60,000 to ₹80,000 crore market segment by the end of this decade, marking a significant transformation in the country's investment landscape.

According to the consultancy's latest research, the retail REIT segment is anticipated to account for 30 to 40 percent of India's overall projected REIT market, which is expected to touch $25 billion—approximately ₹2 lakh crore—by 2030.

Shift in REIT Composition on the Horizon

At present, four of the five listed REITs in India focus on office assets, with Nexus Select Trust being the sole retail-focused entity in the public markets. The firm anticipates this dynamic will evolve as premium Grade A shopping centres mature into stable, income-generating properties that draw institutional capital.

Anarock's analysis suggests that two to three new retail REITs could enter the market within the next three to five years, mirroring trends observed in developed global markets where retail REITs represent 15 to 25 percent of total REIT market capitalisation.

Anuj Kejriwal, CEO and MD of Anarock Retail, noted that retail real estate is positioning itself as a resilient, high-yield asset class prepared for institutional scale and participation in public markets.

Market Performance Indicators

Tier-2 Cities Emerge as Growth Catalysts

Institutional investors are increasingly targeting Tier-2 urban centres including Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh, driving expansion in consumption-led markets with higher income demographics. Major developers such as Phoenix Mills, Prestige Estates, and Nexus Malls are planning large-format retail projects averaging 1 to 1.2 million square feet per development.

The report indicates that entertainment, food and beverage, and lifestyle categories are projected to comprise nearly 50 percent of new mall space, reflecting changing consumer preferences and heightened emphasis on experiential retail offerings.

Strategic Trends Reshaping Retail Real Estate

Mixed-Use Development

Older shopping centres are undergoing transformation into integrated lifestyle districts, signalling a transition toward next-generation retail environments that combine multiple use cases.

Premium Retail Expansion

Growth in high-value consumption categories is influencing tenant composition and mall positioning strategies across major markets. This trend aligns with India's accelerating mall expansion in metropolitan areas.

Institutionalisation of Retail Assets

With rising mall supply and absorption rates, retail is evolving into a core real estate asset class suitable for public market participation. The growing REIT sector in India demonstrates increasing institutional confidence in commercial real estate investments.

The elevation of retail real estate's prominence marks a significant departure from its historical position in India's property market. From being considered a secondary asset class, it is now emerging as a frontline, high-yield investment avenue positioned to attract institutional capital and participate in public markets through REIT structures. This transformation echoes broader shifts in the commercial real estate landscape, where REITs are gaining traction among retail investors seeking stable returns.

Disclaimer: This news article is based on information from property consultancy Anarock and is intended for informational purposes only. The projections and estimates mentioned are subject to market conditions and various economic factors. Readers are advised to conduct their own research and consult with financial advisors before making any investment decisions. The views expressed by quoted individuals are their own and do not necessarily reflect the opinion of this publication.