Reits and the promise of big money

For real estate investment trusts, the India story is just beginning

- GULVEEN AULAKH

The popularity of real estate investment trusts (Reits) is on the rise in India, according to industry watchers and players even as the instrument vies for a spot as a mainstream investment option.

India was a late entrant in the Reits space. Currently, India has five publicly listed Reits — Brookfield India Real Estate Trust, Embassy Office Parks Reit, Mindspace Business Parks Reit Nexus Select Trust, and Knowledge Realty Trust. Together, they manage assets under management (AUM) of ₹2.25 trillion and have a combined market capitalisation of more than ₹1.5 trillion as of August 2025, according to the Indian Reits Association (IRA).

Having allowed the investment instrument only in 2014, India is relatively behind other major global markets. The first Reit was issued in 2019. But according to some senior executives, at least one new Reit is expected to be launched annually over the coming three to five years.

Upcoming Reits include Blackstone-backed Bengaluru developer Bagmane, which is planning a ₹4,000 crore Reit initial public offering, as per Moneycontrol. Another is DLF-GIC joint venture firm DCCDL, which houses all of DLF rental assets of office space and malls, according to the company. However, the company said it has no immediate plans. Another is reported to be a Blackstone, Sattva Group and Panchshil Realty-backed Reit. On the purely retail side there is Phoenix Mills, which recently acquired Canadian investor CPPIB’s shares in its subsidiary Island Star Mall Developers Private Ltd. It said in an investor presentation that the move opened up the way for monetisation through a possible Reit.

Globally, Reits have been used as an investment instrument since 1960, and major markets like the US, Australia, Japan, UK, and Singapore have the larger share of funds raised through Reits. In all, there are over 1,000 listed Reits across 40 countries with a market cap of $1.9 trillion.