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A recent report from ANAROCK Research found that India's retail-focused real-estate investment trusts (REITs) could grow to between INR 60,000 crore and INR 80,000 crore by 2030, accounting for roughly 30-40 % of the total national REIT market. Currently dominated by office-space trusts, the retail segment is gaining ground thanks to maturing Grade-A malls, robust consumption and changing geography of retail demand. Tier-II cities like Indore, Coimbatore, Surat, Bhubaneswar and Chandigarh are emerging as key growth hubs.
India's retail REIT landscape is preparing for a significant shift. The ANAROCK report projects that retail REITs in India may reach the INR 60,000-80,000 crore range by 2030, which would represent about 30-40 % of the overall REIT market, anticipated to hit around USD 25 billion (approximately INR 2 lakh crore) by then. Advertisement
At present, India has a handful of listed REITs and among them only one Nexus Select Trust is retail-centric; the others focus on office assets. ANAROCK's CEO & MD, Anuj Kejriwal, indicated that with Grade-A malls now maturing into stable income-generating assets, two to three new retail REITs are likely to be launched over the next three to five years.
Several factors are driving this shift. Firstly, there is a consolidation of high-quality retail assets that are becoming more suitable for institutional investment. Secondly, rising urban incomes and steady consumer spending are strengthening the retail real estate story. Thirdly, the consumption geography is expanding beyond metros: cities such as Indore, Coimbatore, Surat, Bhubaneswar and Chandigarh are now attracting institutional developers like Phoenix Mills, Prestige Estates Projects and Nexus Malls.
In terms of supply and absorption trends, during the first half of 2025, 2.8 million sq ft of new mall space was completed across India's top seven cities marking about a 155 % rise compared to the same period in 2024. Net absorption was around 2.0 million sq ft, up 31 % year-on-year, with apparel and F&B segments accounting for about 55 % of total leasing.
Comparing rental trends: high-street locations in major cities have seen steady rental growth, but mall rentals have mostly remained flat, reflecting cautious posture by retailers in a shifting marketplace, according to Kejriwal.
For context: the Indian REIT journey began with office-centric assets, boosted by regulatory reforms and institutional interest. Retail REITs have been slower to gain traction because of leasing complexity, higher fit-out costs and cash-flow unpredictability. However, as malls stabilise, and consumption patterns evolve, retail is now becoming a viable institutional grade asset class.
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