REITs market projected to reach Rs 19.7 tn by 2030, powered by retail, warehousing: Knight Frank India
Knight Frank India, in collaboration with the Confederation of Indian Industry (CII), today unveiled its latest report, Commercial Real Estate: Potential is Built, Opportunity is Now, at the CII Conference on Evolving Landscape of Indian Real Estate – CRE: Unlocking Investments, Opportunities & Economic Growth. The report positions India’s commercial real estate (CRE) sector at a defining juncture, where its built potential is set to translate into tangible growth. Among its key highlights, India’s REIT market is projected to reach INR 19.7 tn by 2030 (from INR 10.4 tn in 2025), driven by high occupancy, favourable taxation, and broader sectoral inclusion. Private equity participation, rising from USD 500 mn in 2011 to multi-billion-dollar highs by 2019, has enhanced transparency, deepened institutional confidence, and paved the way for REIT expansion across India’s thriving CRE landscape. As urbanisation, technology, and progressive policy reforms continue to reshape the sector, India’s CRE stands poised to unlock the next wave of opportunity across asset classes. Retail consumption across the organised formats is estimated at a value of INR 8.8 Tn for FY 2025. Led by shopping centres (INR 4.9 tn), high streets (INR 3.8 tn), and other new-age formats such as airport and transit retail. This expansion reflects a clear shift toward experience-driven, consumer-centric destinations where shopping intersects with lifestyle and leisure. Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “India’s CRE transformation is being led by businesses that are more global, technology-driven and experience-focused than ever before. Consolidation in office demand, resilient retail growth and the rapid expansion of digital infrastructure have fundamentally reshaped occupier behaviour. Today, companies want efficient, green, future-ready spaces, and capital markets are rewarding that shift. As India heads toward a USD 7 tn economy, CRE will play an essential role in powering productivity, attracting investment and building next-generation urban centres.” REITs: Deepening Market Participation India’s REITs have a potential to diversify beyond traditional asset classes like office, retail, and warehousing, to industrial parks, data centres, and hospitality. Listed REITs have delivered stable average annual dividend yield of about 5.5%, making them attractive income-generating vehicles. By 2030, India’s REIT market (including office, retail and warehousing sectors) is projected to reach INR 19.7 tn. India currently has five listed REITs covering about 177 mn sq ft of commercial and retail space spanning operational, under-construction, and upcoming assets worth approximately INR 2.3 tn with over 290,000 unitholders. Office REITs India’s office REITs account for just 15.3% of the total office stock across the top eight cities[1], signalling strong potential for institutional growth. Demand from Global Capability Centres (GCCs) and India-facing businesses continues to strengthen, supported by a steady leasing pipeline and occupier preference for premium, sustainable workspaces. The value of REIT-able office assets is expected to rise from INR 8.2 tn in 2025 to INR 16.0 tn by 2030, nearly doubling in five years. With substantial prime office assets yet to enter REIT structures, broader participation from developers and investors will define the next growth phase for India’s office REIT market. Retail REITs Retail REITs are emerging as a new frontier for India’s real estate market amid a strong revival in organized retail. With only 7.3 mn sq ft of Grade A stock currently under REITs, out of a total of 66 mn sq ft of Grade A stock, there is significant headroom for institutional expansion. The value of REIT-able retail assets is projected to grow from INR 1.5 tn in 2025 to INR 2.4 tn by 2030, driven by rising consumer demand and the shift toward formal retail formats. As malls, lifestyle hubs, and mixed-use developments proliferate, retail REITs offer a structured, transparent way for investors to participate in India’s consumption-led growth story. Warehousing and Industrial REITs Warehousing has emerged as one of the most promising future avenues for REITs in India. Fuelled by e-commerce and third-party logistics (3PL) growth, leasing activity reached 32.1 mn sq ft in H1 2025. The top eight warehousing markets collectively hold 220.9 mn sq ft of Grade A stock, offering vast institutional potential. As technology-enabled, high-quality logistics facilities gain traction among occupiers, industrial and warehousing REITs or InvITs are expected to be launched in the next few years. Value of REIT/InvIT can potentially grow from INR 0.7 tn to INR 1.3 tn by 2030. Neel Raheja, Chair, CII National Committee on Real Estate & Housing, and Group President, K Raheja Corp, said, “The partnership between CII and Knight Frank underscores a shared commitment to advancing India’s built environment. As commercial real estate matures, it will play a pivotal role in shaping investment flows, employment, and urban transformation. The sector’s progress mirrors India’s broader economic journey—where potential is abundant, and the time to seize opportunity is now.” Office: Navigating Supply Constraints and Unlocking Growth India is world’s fourth largest office market (valued at INR 16.4 tn (USD 186 bn) and now it has crossed the 1 bn sq ft milestone in 2025. Over two decades, office stock expanded at a CAGR of 8.6%, underscoring structural resilience and sustained investor appetite. Between 2008 and 2024, gross leasing activity grew 5% CAGR, while new completions rose just 1%, tightening the supply-to-demand ratio from 1.40 in 2008 to 0.49 in 2025. The report notes that several top developers have shifted focus to residential projects for higher margins and quicker returns, deepening supply constraints. To achieve the next milestone of 2 bn sq ft, India’s office sector must blend expansion with optimisation through policy incentives, public-private partnerships/JVs and institutional capital. Integrating green certifications early in the planning process is increasingly seen as best practice, enhancing ESG alignment and unlocking additional FSI. Notably, 31% of existing office stock offers retrofitting potential, while 12% of SEZ assets can be adaptively reused, creating scope for sustainable growth. Retail: Experience, Scale, and Renewed Investor Confidence Across organised formats, retail consumption is estimated at a value of INR 8.8 tn for FY 2025, driven by the expansion of shopping centres, high streets, and emerging formats such as airport and transit retail. Since
What’s next for India’s malls?
India’s shopping centres are no longer just destinations to buy—they’re destinations to belong. As spaces evolve, so must our imagination India’s shopping centres are evolving at a dramatic pace. No longer just spaces to transact, malls are now experience engines, cultural arenas, social hubs, and data-driven consumption ecosystems. And that’s the story the industry is coming together to explore and co-author at Shopping Centres Next (SCN) 2025, on July 23–24 in Goa. Organised by the IMAGES Group, SCN is India’s most influential forum for modern retail real estate stakeholders. This year’s theme, infused throughout the agenda, is a directional question: What’s next for India’s malls? The answers are emerging from a confluence of trends: rising Tier 2/3 aspirations, the institutionalisation of retail assets, AI-driven retail planning, and a radical redefinition of what it means to be a “mall” in the age of connected commerce. Let’s explore these shifts through a layered narrative inspired by the SCN 2025 agenda. Recode the Mall: Purpose, People, Possibility In this new era, malls must mean more. The old formula of footfalls and floorplates is giving way to climate-conscious architecture, hyperlocal tenant curation, and human-first design. Success Story: DLF Avenue Saket redesigned itself from a retail property into a curated social and cultural space, with art installations, pet-friendly zones, open-air courtyards, and a strong emphasis on F&B. Global Cue: Coal Drops Yard in London redefined mall culture by converting an old industrial warehouse into a high-design retail precinct, where shopping meets storytelling. Next: India’s future malls will need to prioritise ESG metrics, urban integration, and cultural programming to remain relevant. Shared Growth: From Landlords to Partners The landlord-tenant equation is being rewritten. Malls and retailers are increasingly entering co-risk, co-reward agreements driven by mutual performance and shopper-centricity. Case Study: LuLu Mall Lucknow partnered with 40+ tenants on a unified mall-wide festival, which increased weekend footfall by 27% and dwell time by 3x. Case Study: Pacific Malls created a major industry moment by launching the Pacific Festival of Shopping—a multi-city campaign across its properties in Delhi-NCR, Dehradun, and Jaipur. With over ₹2 crore in prize giveaways, curated weekend carnivals, and gamified app integrations for brand discovery, the campaign delivered 30% growth in weekend footfall and heightened brand visibility for over 100 participating retailers. Innovative Trend: Revenue-share leasing models, combined marketing campaigns, and shared customer data platforms. What’s Next: Co-created loyalty programs, unified digital wallets, and deeper brand-mall collaborations on experiential retail. III. Retail as an Asset Class: The Rise of REITs India’s shopping centres are becoming institutional-grade assets. REITs like Nexus Select Trust are proving that malls can be stable, income-generating platforms. Nexus Snapshot: 19 consumption centres 6 million sq ft retail GLA 130 million footfalls 2% occupancy INR 124 Bn tenant sales (FY24–25) Next: Expect consolidation of Grade A malls under REITs, more foreign institutional interest, and capital-backed innovation in mall operations. Beyond Brick & Mortar: Format to Ecosystem Today’s shopping centres aren’t just places to buy—they’re ecosystems that blend retail, dining, co-working, health, and culture. Case Study: Taurus Zentrum, Thiruvananthapuram is India’s first integrated retail destination located inside a tech park. The larger Taurus Downtown development offers over 700,000 sq ft of gross leasable area with retail, potential hospitality space, convention venues, and SEZ/non-SEZ parcels. This pioneering model brings lifestyle and commerce directly into Kerala’s IT corridor, with built-in customer flows from nearby tech campuses and government offices. Case Study: Avenue Mall @ Texvalley, Erode stands out as South India’s first and largest outlet mall, spanning over 500,000 sq ft within the 2 million sq ft Texvalley textile hub. Developed by Beyond Squarefeet, it fuses wholesale strength with aspirational retail, offering factory outlets, regional fashion brands, local artisans, F&B, and entertainment. Its curated Independence Day launch is set to mark a cultural milestone for Tamil Nadu’s Kongu belt and a new benchmark in Tier 3 retail transformation. Case Study: Phoenix Malls activated a mall-wide digital-first experience at Phoenix Mall of Asia in Bengaluru with QR-based rewards, influencer-led soft launches, and a cultural calendar featuring car rallies, stand-up comedy shows, and art installations. The launch phase saw over 20 million digital impressions and a 40% spike in weekday footfall compared to projections. Global Benchmark: Westfield Century City, LA offers valet parking, rooftop lounges, digital concierge, and event programming to enhance lifestyle relevance. Next: Mixed-use destinations will dominate; malls will function like mini-cities. Connected Commerce: From Browsers to Buyers Digital and physical are no longer distinct spheres. Today’s consumer expects to browse online, touch offline, pay anywhere, and receive products everywhere. Example: Inorbit’s e-Shop initiative lets consumers shop from their favourite mall brands online and pick up in store or opt for delivery. Global Trend: Malls offering smart parking, AR navigation, mobile POS, and in-mall app integrations. Next: Shopping centres as omnichannel fulfillment hubs; QR-led discovery in physical aisles; embedded online-to-offline triggers. Reviving the Empty: Activating Underperforming Zones Vacant zones hurt more than just revenue; they impact shopper perception. Leading malls are responding with creative reuse and short-format experimentation. Example: DLF Promenade’s Pop Box model cycles through emerging D2C brands every 30 days, bringing freshness to underused spaces. Next: Expect test zones, pop-up culture, influencer collaborations, and rotating themes to bring vibrancy back to quieter pockets. VII. Move the Market: Shared Consumer Strategy Malls and brands are no longer separate storytellers. Together, they must script narratives that connect emotionally and culturally. Example: Quest Mall Kolkata curates regional food festivals, Bengali indie cinema screenings, and local art to build deep cultural resonance. Trend: Brands creating mall-exclusive SKUs, storytelling-led visual merchandising, and mall-wide thematic events. Next: Mall as cultural platform—one that inspires, not just sells. VIII. The AI Advantage: Precision-Led Planning AI is transforming how shopping centres are built, leased, and managed. From catchment analysis to predictive leasing and tenant rotation, data is now the key tenant. Use Case: Inorbit Malls, in partnership with Waysahead Global, uses AI to predict catchment trends, plan tenant mix, and adjust lease durations. Next: Expect AI-driven mall layouts, heatmaps for dwell zone optimisation, and even tenant scoring models. Retail Architecture as Urban Catalyst Malls are increasingly shaping not just consumption but the very fabric of cities. Architecture, urban design, and
Pinkwalk: Rajasthan’s Largest Retail & Lifestyle Destination
Manglam Pinkwalk is Rajasthan’s largest mall featuring a unique mix of retail stores, premium office spaces, and modern studio units, making it a prime destination for shoppers and professionals. One of its standout attractions is the tallest aquarium in the city, adding to its charm and exclusivity. Differentiating From Peers Strategically located at Jagatpura, Jaipur for easy access, Pinkwalk—which is slated for launch in October 2025—is not just a shopping hub, but also a promising investment opportunity. Rajasthan’s Largest Mall: Pinkwalk is designed to be the biggest retail and lifestyle destination in the state. Mixed-Use Development: Unlike conventional malls, Pinkwalk integrates premium offices, retail and studio spaces, offering workspaces within a commercial hub. Strategic Location & Investment Potential: Designed for higher footfall and business opportunities, Pinkwalk offers a more attractive investment option as compared to other malls in Jaipur. Luxury & High-Street Experience: The mall combines high-end shopping with a well-planned high-street zone for different retail categories, setting it apart from standard mall layouts. Pinkwalk is also differentiating itself in the kind of consumer experience it is looking to create with consumers. It aims to achieve this by: Grand Shopping Destination: Shoppers can explore a mix of luxury brands, high-street fashion, and exclusive designer stores. Immersive Entertainment & Leisure: With a multiplex, gaming zones, retail zones, cafés and the tallest aquarium, visitors can enjoy a dynamic and visually engaging experience beyond just shopping. Spacious & Aesthetic Ambience: Designed with modern architecture, open spaces, and high-end interiors, the mall provides a sophisticated, comfortable, and Instagram-worthy environment. Seamless Work & Freedom: Integrated premium office spaces and studios for professionals for a work environment that combines productivity with easy access to leisure and retail. Location Strategy Manglam Pinkwalk, located in Akshaypatra, Jagatpura in Jaipur, presents a significant market potential for retail and commercial ventures. The area boasts a dense residential population with relatively high per capita incomes, creating a robust customer base for businesses. Additionally, its proximity to key establishments and excellent connectivity across Jaipur enhance its appeal as a prime destination for retail and lifestyle enterprises. The location serves well since nearby marketplaces only consist of traditional and budget-friendly retail options. Pinkwalk, meanwhile, has positioned itself as a premium lifestyle destination with high-end brands, gourmet dining, and exclusive experiences. To cater the current market, retail has been segmented into 6 different zones which consist of kiosks, small shops and large showrooms. To assist local markets in getting organised and thrive in their businesses, Pinkwalk will also boast the largest flea-market zone in Jaipur and specifically in the Jagatpura area. “We are expecting majority of footfall from nearby areas like Jagatpura, Malviya Nagar and Mansarovar. It expects a weekly footfall of approximately 70,000 – 90,000 people, which is likely to increase during events and in festival season,” said Ajay Gupta, Director, Manglam Group. Balancing Aesthetic Appeal with Functionality, Convenience To attract diverse demographics Pinkwalk will implement tailored strategies that appeal to various groups, ensuring a mix of retail, entertainment, offices, studios, café and experiences that cater to their needs. Towards this, the mall has worked towards the following: Building the Tallest Aquarium in Rajasthan: making Pinkwalk a family-friendly, Instagrammable Rooftop Dining & Experience Zone: The rooftop dining area provides a premium ambiance with a city view, enhancing the dining experience. Multi-Level Shopping & Entertainment Zone: Offers a well-structured layout for shopping, offices, dining, and entertainment, catering to diverse customer needs. Walkable Shopping Street Concept: Provides an open-air retail experience with dedicated pedestrian walkways, enhancing shopper engagement. Grand Façade with Modern Aesthetics: The glass-and-art façade makes the mall visually striking, attracting high-end retailers and brands. Curating the Right Tenant Mix A successful mall curates its tenant mix by balancing anchor brands, high-footfall categories, and niche offerings that reflect local consumer preferences. This involves analysing demographics, shopping behavior, and market gaps to ensure a diverse yet complementary mix that drives traffic, dwell time, and repeat visits. This is exactly what Pinkwalk has done. Visitors can access and enjoy the following types of brands and stores: National and international apparel and accessory brands Dedicated gaming zone for entertainment Food joints including food chains and local brands on rooftop and food zone 6-screen multiplex operated by cinepolis Specified flea market zone (kiosks) for local manufacturers including mix variety of products Embracing Technology Integrating technology helps malls enhance customer experience through smart navigation, personalised offers, and real-time engagement. It also enables data-driven decision-making for operations, tenant performance, and marketing, making the mall more efficient and future-ready. Pinkwalk is embracing the tech-age by: Smart parking systems using Fastag for entry and exit with easy car tracking Directional touchscreen kiosks and mobile based navigation system 3D screens for promotional activities Sensors for real time hygiene levels & automated cleaning schedules App based & offline loyalty reward points using AI for customer engagement AI-powered CCTV monitoring, facial recognition for access control, and emergency response systems. “The mall will also leverage data analytics to understand consumer behaviour and enhance shopping experience. This will help them improve customer experience through personalised engagement with visitors, optimise retail space utilisation and pricing, enhance marketing effectiveness with targeted promotions, organise mall events and promotional campaigns for customers, drive loyalty programs based and data and identify popular product categories and spending patterns by captured POS data,” explained Gupta. Aside from this, the mall is also embracing sustainability by using automated temperature regulation to prevent energy wastage; supporting electric vehicle adoption with dedicated EV charging stations; encouraging responsible waste disposal with clearly labeled, segregated waste bins for recycling; planting terrace plantations and green zones within the mall to enhance air quality; using energy-efficient lighting systems to reduce electricity consumption and having automated controls for lighting, temperature, and ventilation to optimise energy use; maximising the use of natural light and daylight through skylights and glass ; and finally by collecting and reusing rainwater for landscaping and non-potable purposes. The mall aims to achieve a Platinum Green Certification. Pinkwalk plans to build dedicated business and co-working spaces within the
Japanese companies are turning to India for GCCs: Here’s Why!
Japanese companies are increasingly looking to India as a strategic hub for establishing Global Capability Centers (GCCs). Traditionally conservative in offshoring, these firms are now compelled by global competition, digital transformation, and talent shortages at home to explore new frontiers. India, with its proven track record as the world’s leading GCC destination, offers the right mix of scale, skill, and cost efficiency. The most critical driver is access to talent. Japan is grappling with an ageing workforce and limited availability of digital skills, while India produces a vast pool of engineers and IT professionals annually. This talent base is not just large but also highly skilled in emerging technologies like AI, data analytics, cloud computing, and cybersecurity—capabilities Japanese companies urgently need to accelerate digital transformation. India produces ~1.5 million STEM graduates every year; Japanese firms rate “access to India’s skilled talent pool” very highly (4.8/5 in a recent survey). Japan is facing a severe labour shortage and population aging: as of 2025, ~30% of Japan’s population is over 65; projections estimate workforce shrinkage of ~11 million by 2040. Cost competitiveness is another factor. Setting up a GCC in India allows Japanese firms to optimize operational expenses while gaining access to high-quality innovation. Moreover, India’s mature ecosystem of service providers, technology parks, and regulatory support makes it easier to establish and scale centers quickly. Companies report potential operational cost savings of up to 40% by shifting GCC functions or scale to India. Japanese labour and real estate costs are several times higher than equivalent costs in Indian cities, making India particularly attractive for functions that do not require local presence or local market exposure. Japanese corporates are also realizing that GCCs are no longer just back offices—they are innovation engines. Many are using India-based GCCs to drive R&D, product development, and global operations, positioning them closer to key growth markets in Asia and beyond. The presence of multinational GCCs in India further reassures Japanese firms that they can replicate proven models successfully. Japanese firms are lagging in certain digital technologies and facing rising pressure to modernize. GCCs are now being used not only for cost or support-functions but increasingly for R&D, AI/ML projects, automation, and advanced analytics. Example: Dai-ichi Life’s new GCC in Hyderabad (in partnership with Capgemini) will focus on AI, data analytics, cybersecurity to accelerate its global digital transformation. Finally, cultural adaptability and the growing India–Japan economic partnership make the move more attractive. With strong government-to-government ties, trade agreements, and joint initiatives in technology and infrastructure, India is emerging as a trusted partner. India’s GCC ecosystem is mature: good infrastructure, multiple preferred hubs (Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR), regulatory support, and policies favoring innovation and R&D. Bilateral trade and investment ties between India and Japan are strengthening; Japan is a major source of FDI in India. Japanese firms are no longer viewing India merely as a cost arbitrage location; instead, they are treating GCCs in India as strategic innovation hubs. The combination of an abundant tech talent pool, favorable cost differentials, governmental support, and pressing domestic constraints in Japan (aging, labour shortages, rising costs) create a strong case. As India continues to strengthen its infrastructure, policy framework, and ecosystem, more Japanese multinationals are expected to deepen investment, move upstream in value (towards R&D/engineering), and measure GCCs by performance and innovation metrics, not just cost savings.