Curation Team
NEW DELHI: Retail Real Estate Investment Trusts (REITs) are poised to become a ₹60,000–80,000 crore opportunity by 2030, according to a new report by Anarock Research.
The report projects that retail REITs could account for 30–40% of India’s overall REIT market, which is expected to touch USD 25 billion (₹2 lakh crore) by the end of the decade. The trend, the company said, mirrors global markets where retail REITs form 15–25% of total REIT capitalization.
“Currently, out of the five listed REITs in India, four are office-focused and only one — Nexus Select Trust — is retail-centric,” said Anuj Kejriwal, CEO & MD, Anarock Retail. “With Grade A malls now maturing into stable, income-generating assets, two to three new retail REITs are expected to launch over the next three to five years. Our estimate assumes only partial listings of various institutional portfolios.”
Retail REITs to drive next phase of real estate institutionalisation
Anarock’s analysis suggests that the retail REIT segment could account for up to 40% of India’s total REIT market by 2030, powered by consolidation of high-quality assets, rising urban incomes, and steady consumption growth.
The report notes that India’s listed REIT space—currently dominated by commercial offices—is gradually diversifying, with developers and investors eyeing shopping centres, mixed-use districts, and entertainment-led retail hubs as viable, yield-generating asset classes.
Tier-II cities emerge as next retail growth hotspots
Beyond the metros, tier-II cities such as Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh are now attracting institutional developers like Phoenix Mills, Prestige Estates, and Nexus Malls, marking a shift in India’s consumption geography.
New mall projects averaging 1–1.2 million sq ft are being planned across these cities, with entertainment, F&B, and lifestyle retail accounting for nearly half of new space under development.
Retail absorption and supply trends
According to the report, 2.8 million sq ft of new mall space was completed across the top seven cities in the first half of 2025 — 155% higher than in 2024. Net absorption stood at 2.0 million sq ft, up 31% year-on-year, led by the apparel and F&B segments, which together contributed 55% of total leasing.
“These absorption trends reflect a clear evolution in Indian consumer behaviour,” said Kejriwal. “High-value consumption categories are gaining traction — a key signal for mall developers to recalibrate their tenant mix strategies.”
High streets vs malls: contrasting rent trends
Kejriwal noted that high streets across major cities are seeing steady rental appreciation, supported by sustained footfall and strong brand visibility. In contrast, mall rentals have remained largely stable, reflecting a more cautious approach from retailers amid evolving market dynamics.
