Blackstone Expects Rapid Growth in India’s REIT Market

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Global investment firm Blackstone has projected exponential growth for India’s Real Estate Investment Trust (REIT) market, citing its current share of less than one percent in Indian equity markets. In comparison, REITs account for over 14 percent of equity markets in the United States.

Asheesh Mohta, Senior Managing Director of Blackstone Real Estate, said the REIT segment in India is still at a nascent stage but holds strong potential. According to Mohta, IPOs are now becoming the preferred route for growth-focused real estate assets to unlock capital and achieve scale.

Blackstone is currently backing Knowledge Realty Trust (KRT), a joint venture with the Sattva Group, which recently launched India’s largest office REIT public offering. The ₹4,800 crore issue aims to further institutionalize commercial real estate investments through publicly listed structures. The KRT IPO marks a significant milestone for the sector, signaling greater acceptance of REITs among Indian investors.

The investment giant has played a key role in shaping the REIT ecosystem in India. In December 2023, Blackstone exited its stake in Embassy Office Parks REIT, India’s first listed REIT, selling its shares for approximately $833 million. This move was part of its broader strategy to reallocate capital and support new ventures like KRT.

REITs are considered an effective way for investors to access income-generating commercial real estate without direct ownership. In India, the REIT space remains underpenetrated, offering significant upside as regulatory frameworks improve and investor interest grows.

Blackstone’s leadership believes that with sustained policy support and market education, REITs in India could expand their presence significantly. The firm expects more high-quality commercial assets to be brought under REIT structures in the near future, offering stable returns and long-term value to investors.