Mall boom ahead? India's retail REITs may become ₹80,000 cr market by 2030

India’s shopping malls are not just getting bigger — they’re getting listed. According to a new report by ANAROCK Research, “Indian Retail REITs: The Next Growth Frontier,” the country’s retail Real Estate Investment Trust (REIT) market could touch ₹60,000–₹80,000 crore by 2030, emerging as one of the biggest new investment themes in Indian real estate.

 

Currently, retail REITs account for only a fraction of India’s ₹1.3 lakh crore REIT market, which is dominated by office assets. But that’s set to change. ANAROCK projects that retail REITs could make up 30–40% of India’s total REIT market, expected to grow to $25 billion (₹2 lakh crore) by 2030.

 

“With Grade-A malls now maturing into stable, income-generating assets, we expect 2–3 new retail REITs to launch over the next 3–5 years,” said Anuj Kejriwal, CEO & MD, ANAROCK Retail. “Our estimate assumes only partial listings of various institutional portfolios.”

 

Retail REITs: From Concept to Opportunity

 

Of the five listed REITs in India, only Nexus Select Trust — backed by Blackstone — is retail-focused; the rest are office REITs such as Embassy, Mindspace, Brookfield, and DLF’s DCCDL. In mature markets like the US, Singapore, and Australia, retail REITs make up 15–25% of total REIT market capitalization, a benchmark India is now approaching.

 

Large mall developers such as Phoenix Mills, Prestige Estates, and Nexus Malls are consolidating assets and building scale for future listings.ANAROCK estimates that institutional portfolios across these developers collectively hold over 34 million sq. ft. of leasable retail space across more than 60 malls in India.

 

Tier-II Cities: The New Retail REIT Hotspots

 

The report highlights that India’s next wave of mall REITs may not come from Mumbai or Delhi but from fast-emerging Tier-II cities such as Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh.

 

These cities are now attracting institutional capital for the first time, driven by rising household incomes and expanding consumption. Developers like Phoenix Mills, Prestige Estates, and Nexus Malls are already planning new projects averaging 1–1.2 million sq. ft. each, where F&B, entertainment, and lifestyle retail account for nearly 50% of the space.

 

“The retail growth story is no longer metro-centric,” said Kejriwal. “Consumption-led cities with young, aspirational populations are becoming key targets for institutional investment.” 

Source: ANAROCK Research & Advisory

 

Demand-Supply Dynamics: Retail Real Estate Rebounds

 

According to ANAROCK’s RELEAP H1 2025 Report, the first half of 2025 saw 2.8 million sq. ft. of new mall supply across India’s top seven cities — up 155% year-on-year from 1.1 million sq. ft. in H1 2024.

Net absorption stood at 2.0 million sq. ft., a 31% increase from the previous year.

 

The apparel and F&B sectors drove this demand, together accounting for 55% of total leasing, while entertainment and wellness retail also saw strong traction.

 

Kejriwal noted that high-value consumption is now reshaping the tenant mix:

 

“Apparel, dining, and entertainment are leading demand. Consumers are spending more time and money on experiences — and that’s exactly where institutional developers are focusing.”

 

Demand-Supply Dynamics: Retail Real Estate Rebounds

 

According to ANAROCK’s RELEAP H1 2025 Report, the first half of 2025 saw 2.8 million sq. ft. of new mall supply across India’s top seven cities — up 155% year-on-year from 1.1 million sq. ft. in H1 2024.

Net absorption stood at 2.0 million sq. ft., a 31% increase from the previous year.

 

The apparel and F&B sectors drove this demand, together accounting for 55% of total leasing, while entertainment and wellness retail also saw strong traction.

 

Kejriwal noted that high-value consumption is now reshaping the tenant mix:

 

“Apparel, dining, and entertainment are leading demand. Consumers are spending more time and money on experiences — and that’s exactly where institutional developers are focusing.”

 

Why Retail REITs Matter for Investors

 

Retail REITs open access to India’s booming consumption story without directly owning or managing property.

Retail REITs typically offer:

 

Steady rental yields from long-term leases with anchor tenants (apparel, F&B, entertainment)

 

Inflation-linked returns, as rents often escalate annually

 

Portfolio diversification beyond office or residential REITs

 

Liquidity, since REIT units trade like shares

 

Analysts say the first few retail REITs — likely backed by Nexus, Phoenix Mills, or DLF — could become prime yield instruments for investors seeking consistent income and inflation hedging. 

Key takeaways: 

• Potentially 30-40% of India’s overall REIT market, which is projected to touch USD 25 Bn (INR 2 lakh crore) by 2030
• Retail REITs form approx. 15-25% of total REIT market capitalization in mature economies
• 2-3 retail REITs expected to launch over the next 3-5 years with Grade A malls maturing into stable, income-generating assets
• Of five currently listed REITs, only Nexus Select Trust is retail-focused; other 4 are office-focused
• Beyond the metros - tier-II cities such as Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh now seeing institutional entry, raising REIT opportunities, devs like Phoenix Mills, Prestige Estates, & Nexus Malls expanding aggressively there
• New projects averaging 1-1.2 Mn sq. ft. being planned - entertainment, F&B, & lifestyle retail now account for nearly half of new mall spaces