When the Pacific Warms, India Must Learn from the Desert
The question is no longer whether India needs these lessons, but whether it is prepared to adopt them at the scale and speed that climate change demands.
India’s Real Estate Investment Trust (REIT) market is projected to reach Rs 19.7 trillion by 2030, from Rs 10.4 trillion in 2025, driven by high occupancy, favourable taxation, and broader sectoral inclusion.
Knight Frank India, in collaboration with the Confederation of Indian Industry (CII), in its latest report titled ‘Commercial Real Estate: Potential is Built, Opportunity is Now’, highlighted that India’s commercial real estate (CRE) sector at a defining juncture, where its built potential is set to translate into tangible growth.
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The report mentioned that the retail consumption across the organised formats is estimated at a value of Rs 8.8 trillion for FY 2025. Led by shopping centres (Rs 4.9 trillion), high streets ( Rs 3.8 trillion), and other new-age formats such as airport and transit retail.
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This expansion reflects a clear shift toward experience-driven, consumer-centric destinations where shopping intersects with lifestyle and leisure.
The report further mentioned that the 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.
Notably, 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 Rs 2.3 trillion with over 290,000 unitholders.
India is the 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 per cent, underscoring structural resilience and sustained investor appetite.
Between 2008 and 2024, gross leasing activity grew 5 per cent CAGR, while new completions rose just 1 per cent, 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.
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