India’s Retail REIT Market May Hit ₹80,000 Crore by 2030

India’s retail real estate sector is preparing for a major transformation, evolving from a consumption-driven model to a listed, institutional asset class.

According to ANAROCK Research, the Indian retail REIT market could reach ₹60,000–₹80,000 crore by 2030, accounting for 30–40% of the country’s total REIT market, which is projected to cross ₹2 lakh crore. This shift reflects growing investor confidence in malls as stable, income-generating assets. The trend mirrors the earlier evolution of office parks into mainstream investment vehicles.

From Office to Retail: A Shift in REIT Composition

Since the launch of India’s first REIT in 2019, the market has been dominated by office assets. Four of the five listed REITs, Embassy, Mindspace, Brookfield, and DLF’s Nexus Select Trust, are focused on commercial real estate.

Nexus Select Trust, the only retail-focused REIT, has shown steady performance, validating investor interest in organised retail. Globally, retail REITs represent 15–25% of total REIT market capitalisation in mature markets like the US, Singapore, and Australia. Analysts believe India is now entering a similar phase.

Consolidation and Institutional Ownership on the Rise

The sector’s momentum is supported by the consolidation of high-quality mall portfolios. Major developers such as Phoenix Mills, Nexus Malls (Blackstone), DLF, K Raheja, and Pacific collectively manage over 45 million sq. ft. of retail space across key cities.

Phoenix Mills leads with 11 million sq. ft., followed by Nexus Malls with 10 million sq. ft. across 14 cities. Both have attracted institutional investors and are expanding into new consumption hubs. The growing presence of global private equity players underscores the increasing institutionalisation of India’s retail real estate.

Tier-II Cities: The New Consumption Frontier

Growth is increasingly shifting to Tier-II cities like Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh. These cities are witnessing rising urban consumption, higher disposable incomes, and the entry of national and global retail brands.

Developers such as Phoenix Mills, Prestige Estates, and Nexus Malls are building large-format malls averaging 1–1.2 million sq. ft. Nearly half of this new space is dedicated to entertainment, food and beverage, and lifestyle retail, segments that drive repeat visits and longer dwell times, making them attractive for REIT inclusion.

Demand-Supply Dynamics: A Post-Pandemic Rebound

In the first half of 2025, India’s top seven cities saw 2.8 million sq. ft. of new mall supply, a 155% increase over 2024. Net absorption reached 2 million sq. ft., up 31% year-on-year, led by apparel and food and beverage, which together accounted for 55% of total leasing.

This rebound signals a shift from volume-driven development to experience-led curation. Malls are evolving into mixed-use destinations with entertainment zones, co-working spaces, and leisure areas, making them attractive long-term assets for REIT investors.

Read More: Sebi Reclassifies REITs as Equity

Conclusion

India’s retail real estate sector is entering a new phase of institutionalisation, with REITs poised to play a central role. The projected ₹80,000 crore market by 2030 reflects growing investor confidence and structural maturity.

With strong demand, expanding portfolios, and rising interest in Tier-II cities, retail REITs are set to become a key pillar of India’s real estate investment landscape. The coming years will likely witness more listings, higher participation, and deeper capital market integration for India’s retail property sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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