India’s retail Real Estate Investment Trust (REIT) market is expected to witness significant growth, reaching Rs 60,000-80,000 crore by 2030, accounting for 30-40% of the projected Rs 2 lakh crore REIT universe. This growth will be driven by consolidation of quality retail assets, steady consumer spending, and rising urban incomes. The expansion will be further fueled by the growing demand for retail space and increasing institutional investment in retail assets.
The industry is witnessing a shift, with Grade A malls maturing into stable, income-generating assets. Anuj Kejriwal, CEO and MD, ANAROCK Retail, notes that their estimate of the Indian retail REITs’ potential to become an Rs 60,000-80,000 crore market in the next five years assumes only partial listings of various institutional portfolios. This trend mirrors mature global markets, where retail REITs account for 15-25% of the total REIT market capitalisation.
Institutional developers are progressively focusing on high-income and consumption-oriented Tier-II cities such as Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh. The top five mall owners are expected to control 60% of the overall organised stock, and new retail REITs will institutionalise the market further. A wave of mixed-use redevelopment is anticipated, with older malls being repurposed into integrated lifestyle districts.
The market is also seeing a surge in new mall supply, with 2.8 million sq. ft. of new mall space added in H1 2025, a 155% increase over 2024. New projects now average 1-1.2 million sq. ft., with entertainment, food and beverage (F&B), and lifestyle retail together accounting for nearly half of the upcoming space.
