India's Commercial Real Estate Market Poised for Significant Growth, REITs to Reach ₹19.7 Trillion by 2030

Real Estate

31st October 2025, 9:57 AM

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Short Description :

A new report by Knight Frank India and the Confederation of Indian Industry (CII) highlights the immense potential in India's commercial real estate (CRE) sector. The report forecasts the Indian REIT market to nearly double to ₹19.7 trillion by 2030, driven by strong occupancy rates and favorable policies. It also predicts robust growth in retail consumption, particularly in organized formats, with a shift towards experience-centric destinations.

Detailed Coverage :

The report titled "Commercial Real Estate: Potential is Built, Opportunity is Now," launched by Knight Frank India in collaboration with the Confederation of Indian Industry (CII), signifies a pivotal moment for India's commercial real estate sector. Key findings indicate that India's Real Estate Investment Trust (REIT) market is projected to grow from ₹10.4 trillion in 2025 to ₹19.7 trillion by 2030. This expansion is attributed to high occupancy rates, favorable taxation, and increasing sector inclusion within REITs.

Retail consumption in organized formats is expected to reach ₹8.8 trillion for FY 2025, led by shopping centers and high streets, reflecting a consumer shift towards lifestyle and leisure destinations. Shishir Baijal, Chairman and Managing Director of Knight Frank India, noted that businesses are increasingly global, tech-driven, and experience-focused, leading to demand for efficient, green, future-ready spaces.

Impact: This news is highly relevant for investors as it signals significant growth potential in the Indian real estate sector, particularly in REITs, which are becoming attractive income-generating assets. The projected growth in CRE will likely attract capital investment, boost economic activity, and create opportunities for related businesses and investors. Rating: 8/10

Difficult Terms: Commercial Real Estate (CRE): Refers to properties used solely for business purposes, such as office buildings, retail spaces, hotels, and industrial sites. REIT (Real Estate Investment Trust): A company that owns, operates, or finances income-generating real estate. REITs allow individuals to invest in large-scale, income-producing real estate without directly owning the property themselves. Occupancy: The rate at which available space in a property is rented or utilized. High Streets: Main commercial streets in a town or city, typically lined with shops, businesses, and services. Unitholders: Individuals or entities who own units in a REIT, similar to shareholders owning stock in a company.