Knight Frank India, in collaboration with the Confederation of Indian Industry (CII), unveiled its latest report, “Commercial Real Estate: Potential is Built, Opportunity is Now”, at the CII conference on the evolving landscape of Indian real estate. The report highlights India’s commercial real estate (CRE) sector at a pivotal stage, poised for significant institutional growth and investment opportunities.
According to the report, India’s REIT market, covering office, retail, and warehousing segments, is projected to grow from ₹10.4 trillion in 2025 to ₹19.7 trillion by 2030. The growth is driven by high occupancy rates, favorable taxation, urbanization, and technological advancements. Private equity participation, which rose from USD 500 million in 2011 to multi-billion-dollar levels by 2019, has enhanced transparency and investor confidence, setting the stage for further REIT expansion.
The organized retail sector is expected to reach ₹8.8 trillion by FY25, led by shopping centers (₹4.9 trillion), high streets (₹3.8 trillion), and emerging formats such as airport and transit retail. Retail REITs are emerging as structured, transparent avenues for investors to participate in India’s growing consumption story.
India’s office market has crossed 1 billion sq. ft., making it the fourth-largest globally. REIT-eligible office assets are projected to increase from ₹8.2 trillion in 2025 to ₹16 trillion by 2030. Warehouse and industrial REITs are gaining traction with e-commerce and third-party logistics driving leasing activity, while data centers—India’s fastest-growing CRE asset class—have surpassed 10 GW capacity, supported by 5G, AI, cloud adoption, and data localization.
Shishir Baijal, Chairman & MD, Knight Frank India, stated, “India’s CRE transformation is led by globally-focused, tech-driven, and experience-centric businesses. As India moves toward a USD 7 trillion economy, CRE will play a crucial role in boosting productivity, attracting investment, and shaping next-generation urban centers.”
The report emphasizes sustainability, technology integration, and institutional participation as key drivers of future growth. With structural reforms and innovative capital routes, India’s CRE sector is transitioning from a growth story to a tale of sustainable, globally relevant institutional strength.
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