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

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

The Compact Conquest: How neighbourhood malls are reimagining urban retail

For years, Indian retail was measured in size; the bigger the mall, the bigger the bragging rights. But walk through Delhi-NCR today and you’ll notice something changing. Compact neighbourhood malls are emerging in areas such as Noida Extension, Dwarka, and Gurugram’s new sectors and high-density areas, designed to seamlessly integrate into daily life. The idea is simple. People no longer want to drive an hour, hunt for parking, and spend half a day in a mall just to pick up groceries and catch a film. Post-pandemic habits have reinforced this. Shoppers prefer retail that sits closer to home, within a 10–15-minute drive. Knight Frank’s latest study highlights that dense micro-markets are now the primary drivers of retail growth. These malls usually range between 50,000 and 200,000 sq ft with a high-quality supermarket at the centre, surrounded by a few F&B brands, salons, wellness clinics, a play zone or a small multiplex, plus essential services like banks and pharmacies. It’s enough to keep footfalls steady throughout the week. CBRE data shows retail leasing in India shot up nearly 50% in 2023, and a significant chunk was driven by new malls of this scale. According to a recent report by Cushman & Wakefield, retail leasing in high streets across Delhi-NCR jumped a massive 57% year-on-year in Q1 2025, accounting for 61% of the region’s total leasing activity. Gurugram led the way, followed by Noida and Delhi. Much of it was driven by neighbourhood malls. Pankaj Jain, Founder & CMD, SPJ Group, says, “Neighbourhood malls are redefining the urban retail landscape by combining convenience with community. He notes that design and layout play an integral role in a retail project’s success: “Developers are realising that the format must look and feel different from the boxy malls of the 2000s. Curated is the keyword. People don’t want 200 stores. They want a clean, walkable space where the mix of tenants feels right. With evolving lifestyles and a growing preference for hyperlocal experiences, we are seeing increasing fondness for these formats as they deliver both footfall consistency and a sense of belonging for residents. For developers, this is not just about building retail spaces, but about creating vibrant social hubs that enhance liveability. In our project design, we are particular in designing them for everyday use, but with enough character to become the go-to social spot. That’s how you build loyalty.” Arjun Gehlot, Director, Ambience Malls, says, “The ability to tailor tenant mix is another edge. As cities like Gurugram continue to evolve, malls here are shaping up as cultural and social hubs that define urban living. The city’s purchasing power now rivals that of Delhi, which makes it an attractive destination for both consumers and brands. This has created a natural pull for top international retailers who now see Indian malls as the most strategic entry point to connect with an aspirational and diverse consumer base. Global fashion and lifestyle names coexisting alongside national brands and even familiar neighbourhood favourites offer a holistic experience that feels both world-class and rooted in community.” Ajendra Singh, VP, Sales & Marketing, Spectrum@Metro, says, “For developers, the case is practical as much as it is strategic. Smaller malls don’t tie up capital for years, and leasing cycles are quicker. More importantly, they tap into a ready-made catchment of residents. Post-pandemic behaviour has made this model stronger. People want F&B and essential retail right next door. For us, it creates value on both sides, our housing projects get a retail anchor, while the mall itself finds tenants faster and delivers steady yields.” Across India, from Bengaluru’s Whitefield to Mumbai’s suburbs, similar stories are playing out. But NCR’s density and township-led growth may make it the testing ground for the model. Analysts point out that as the region sprawls further outward, compact retail will be the backbone of these self-contained ecosystems. So while the big malls will always have their place on the weekends, it’s the compact neighbourhood centre that is fast becoming the workhorse of urban retail. In NCR, especially, that shift is visible every time a new township opens, and almost immediately, a neighbourhood mall rises to complete it.