India’s Retail REIT Market Set to Hit ₹80,000 Crore by 2030, Driven by Tier-II City Boom
India’s retail Real Estate Investment Trust (REIT) segment is on track to become a ₹60,000–80,000 crore market by 2030, according to a new report by ANAROCK. This would represent around 30–40% of India’s total REIT market, which is projected to touch ₹2 lakh crore ($25 billion) by the end of the decade. The report highlights a growing investor appetite for income-yielding retail assets as Grade-A malls across India mature into stable, revenue-generating properties.
Currently, India has five listed REITs—four office-focused and one retail-centric, Nexus Select Trust. ANAROCK predicts that with improving mall performance and consumer spending, 2–3 new retail REITs could launch within the next five years. These upcoming REITs are expected to unlock value for developers and offer investors a structured route to participate in India’s rapidly expanding consumption-driven economy.
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Beyond the metros, Tier-II cities such as Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh are emerging as the next growth hotspots. Developers like Phoenix Mills, Prestige Estates, and Nexus Malls are leading this expansion, launching large-scale projects averaging 1–1.2 million sq. ft. New-age malls increasingly focus on experience- driven formats—entertainment, F&B, and lifestyle retail—now accounting for nearly half of all new retail developments.
India’s organised retail market is currently dominated by a few major developers. Nexus Malls (Blackstone) leads with 19 malls across 14 cities, followed by Phoenix Mills, DLF, K Raheja Corp, and Pacific Group, collectively holding a significant share of the country’s leasable retail stock. ANAROCK forecasts that these top five developers will control nearly 60% of India’s organised retail space within the next five years, supported by retail REIT listings and asset recycling.
According to ANAROCK’s RELEAP H1 2025 report, the first half of 2025 saw 2.8 million sq. ft. of new mall supply, up 155% year-on-year, with net absorption of 2 million sq. ft. Apparel and F&B brands led leasing activity, contributing 55% of total demand. These robust absorption trends signal strong consumer sentiment and underscore the transformation of Indian retail real estate into a resilient, high-yield investment class ready for institutional capital and public market participation.
