The REIT sector gained traction following its fifth listing in 2025, driving total market capitalization to approximately $18 billion. Vinod Rohira, MD & CEO of K Raheja Corp, stated that investors are becoming aware of the inherent value represented by annuity-generating commercial assets. “These assets focus on intrinsic value, prioritizing dividends and overall growth,” he explained, emphasizing that REITs should be viewed as equity instruments rather than alternatives to debt.
Zia emphasized the disparity between the available office supply and REIT penetration. With over one billion square feet of office space in India, only a fraction is included in REIT portfolios. “Now is the time to broaden our portfolios,” he remarked, indicating that the limited coverage suggests significant potential for future listings.
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He mentioned that the introduction of three to four additional REITs in the market would enhance investor choices and depth. Zia anticipates several new REIT listings over the next three to four years, not only in office spaces but also in retail, hospitality, and warehousing sectors.
Rohira indicated that demand for Grade A commercial real estate remains strong, especially from large institutions looking for income-generating assets. This demand has resulted in rising asset prices and lower yields for prime properties, while supply remains constrained in key locations.
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On the residential front, Rohira noted a shift in buyer preferences towards timely deliveries and lifestyle-oriented housing. “Clients are willing to invest and seek a lifestyle,” he remarked, adding that younger buyers will shape future demand trends.
Beyond offices and residences, Rohira pointed out that sectors like hospitality, healthcare, and education could see increased institutional participation in the next five years as investors explore new real estate asset classes.
For the full interview, watch the accompanying video
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