India’s REITs Hit ₹2.3 Lakh Crore GAV, Surpass Hong Kong In Market Cap

New Delhi: India’s real estate investment trust sector has evolved from a policy experiment into a mainstream asset class with a gross asset value of about Rs 2.3 lakh crore eclipsing Hong Kong’s REIT market in market capitalisation, a report said on Monday. The report from Anarock Capital said that the sector’s equity market capitalisation reached about Rs 1.66 lakh crore as of September 30, 2025, exceeding Hong Kong’s REIT market even though only about 32 per cent of REIT‑worthy stock is listed.

The five‑year annualised price return for Indian REIT indices was over 8.9 per cent, outperforming peers in Singapore, Japan and Hong Kong, the report said. Many of developed economies delivered negative or low-single-digit returns during the same period. “The Q2 FY26 scorecard underscores a powerful total‑return proposition that has proven remarkably resilient to rate hikes and market volatility,” Shobhit Agarwal, CEO - Anarock Capital said.

"Since listing, unit prices for the initial four REITs have surged between 25 per cent and 61 per cent, while the newly listed Knowledge REIT has already gained approximately 12 per cent, he added. The report noted that unit price growth coupled with steady income generation took the trailing 12‑month distribution yields to an attractive 5.1–6 per cent band. The five REITs in India distributed over Rs 2,331 crore in Q2 FY26, recording a massive 70 per cent year‑on‑year growth, the report noted.

"Fuelled by impending index inclusion and deepening domestic participation, the sector is on track to breach a $20 billion market cap in the near term," said Vishal Singh, MD - Investment Banking, ANAROCK Capital. The mandatory distribution of at least 90 per cent of net distributable cash flows has transformed these trusts into efficient yield vehicles, democratizing access to Grade-A commercial real estate for HNIs and retail investors. Portfolios are running near optimal capacity with committed occupancies ranging from 90–96 per cent, with the sector accounting for over 20 per cent of all pan-India gross office leasing in Q2 FY26.

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