Indian Retail REIT Market to Touch INR 80,000 Crore by 2030: ANAROCK

Indian Retail REIT could become the next major growth engine in India’s real estate investment ecosystem, according to ANAROCK Research.

The consultancy estimates that the Indian Retail REIT market could expand to between ₹60,000 crore and ₹80,000 crore by 2030, forming nearly 30–40% of the overall REIT market projected at USD 25 billion (₹2 lakh crore).

Indian Retail REIT Market Set for Strong Institutional Growth

The country’s REIT landscape, currently dominated by office assets, is now seeing a strategic shift toward retail. Of the five REITs listed in India, only Nexus Select Trust is retail-focused, while the remaining four cater to commercial office spaces.

Also Read: ANAROCK Capital Flux Report: Private Equity in Indian Real Estate Falls 15 Per Cent in H1 FY26

With Grade A malls maturing into steady, income-generating assets, ANAROCK expects 2–3 new retail REITs to debut over the next three to five years.

Anuj Kejriwal, CEO and MD of ANAROCK Retail, said, “Our estimate of the Indian Retail REIT market’s potential assumes only partial listings of institutional portfolios. The sector is entering a new growth phase aligned with global trends, where retail REITs account for 15–25% of the total REIT capitalization.”

Tier-II Cities Driving the Indian Retail REIT Opportunity

Beyond the major metros, Tier-II cities such as Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh are emerging as strong consumption hubs.

Developers like Phoenix Mills, Prestige Estates, and Nexus Malls are expanding aggressively in these high-income markets, supported by institutional interest in long-term retail assets.

New projects are averaging 1–1.2 million sq. ft., with entertainment, food & beverage (F&B), and lifestyle retail now making up nearly 50% of total new mall space.

Mall Development and Absorption on the Rise

According to ANAROCK Retail’s RELEAP H1 2025 report, 2.8 million sq. ft. of mall space was added across India’s top seven cities during the first half of 2025 – an increase of 155% from 2024. Net absorption stood at approximately 2.0 million sq. ft., up 31% year-on-year.

The growth was driven primarily by the apparel and F&B sectors, which together accounted for 55% of total leasing activity.

“These absorption trends underline a shift in Indian consumer preferences,” said Kejriwal. “High-value consumption categories are now gaining traction, influencing both tenant mix and developer strategy.”

Also Read: ANAROCK Consumer Sentiment Survey H1 2025: 81 Per Cent Homebuyers Struggle with Rising Prices

High Streets Outperform Malls in Rental Growth

While high streets across major cities are witnessing steady rental appreciation due to sustained demand for high-footfall locations, mall rentals have largely remained stable.

ANAROCK notes that this trend reflects cautious expansion from retailers amid evolving market dynamics.

Outlook for Indian Retail REIT Market

The organized retail real estate sector in India is shifting from a focus on square footage to building vibrant urban destinations. According to ANAROCK’s projections for the next five years:

• The top five mall owners will control 60% of organized retail stock.
• New retail REITs will further institutionalize the market.
• Older malls will be redeveloped into mixed-use lifestyle districts.

“Retail is no longer a secondary component of real estate portfolios,” said Kejriwal. “The Indian Retail REIT market is emerging as a resilient, high-yield asset class that is now ready for institutional scale and public market participation.”

Source: ANAROCK Research & Advisory