India surpasses Hong Kong to become Asia's 4th-Largest REIT Market: China’s Fatal Fall, Gain for Indian Real Estate in 2026?

Indian real estate surpassed Hong Kong for the first time in history. India's REIT market secured Asia’s fourth-largest REIT market by value, leaving behind the Chinese market based on deeper institutional participation. Also, the new product issuance and diversified portfolios played a pivot for this massive jump. According to Cushman & Wakefield's Asia REIT Market Insight 2025–2026, India's REIT market value rose 62% between the end of 2024 and March 2026, making it a milestone moment for India.

India’s REIT market crossed US $17.7 billion by March 2026, positioning just ahead of Hong Kong’s US$17.4 billion.

During the same tenure, the Indian REIT market climbed the ladder, as India had seven small and large REITs with a combined market value of $17.7 billion and a 6% share of the Asian market by then.

India drives one step ahead of the Chinese territory mainly because of the new listings like Knowledge Realty Trust. Also, the major shift in demand for office accommodations from MNCs and global Capability Centers (GCCs) signals that Indian commercial real estate has entered institutional-grade platforms on the international stage.

 Hong Kong remains a significant player in Asia’s REIT market, as it accounts for 11% of the market with 79 REITs. At a combined market value of $32.1 billion. The Chinese territory was also a major contributor to Asia’s REIT growth, with 21 out of 27 listings from December 2024 to March 2026.

Where Does Hong Kong Stand in the Global Real Estate Map Today?

China’s Hong Kong city is a landmark for Asia's financial and real estate operations. It is a market based on rich, high-value office and retail towers and decades of institutional capital. However, its dominance has been declining over the past some time.

 Seasoned markets such as Japan and Singapore stabilised and recovered only moderately through 2025–2026, even as the broader region expanded.

The figure speaks volumes here. Japan continues to remain Asia's largest REIT market, with 58 REITs worth roughly US$101.4 billion. Followed by Singapore at US$76.7 billion and the Chinese mainland at US$32.1 billion.

The Knowledge Realty Trust and Bagmane Prime Office REIT added a combined 53.7 million sq ft to Indian REIT portfolios between June 2025 and June 2026. It’s about three-quarters of all new space added across the six Indian REITs in that tenure. As of June 2026, six Indian REITs held 178 million sq ft, with another 36.7 million sq ft under construction or planned.

However, Hong Kong, once comfortably ahead of India, had 11 REITs with a combined market value of US$17.4 billion, securing fifth position in the regional ranking as of March 2026. That's a fatal fall in relative standing for a market that once symbolised Asian real estate capital.

 “India’s REIT market has reached an important inflection point, with larger listed portfolios, strong occupancies and a healthy development pipeline reinforcing its institutional depth. Demand from multinational companies and GCCs continues to favour high-quality, professionally managed office assets, while recent regulatory measures are widening the investor base and improving access to financing. Together, these developments create a stronger foundation for continuous REIT portfolio growth and market liquidity,” said Somy Thomas, Executive Managing Director, Capital Markets, India, Cushman & Wakefield.

Reasons Foreign Investors Prefer Indian REITs in 2026

• Global Push for Office Space: Multinational companies and Global Capability Centres continue to lease large blocks of Grade-A office space, keeping occupancy high even as global capital markets stay cautious.

• New Grade-A supply in the Market: Fresh listings like Knowledge Realty Trust have expanded the investable universe well beyond the original four REITs.

• Regulatory Maturity: SEBI's REIT framework, mandatory high-distribution norms, and rising SM REIT participation have made the asset class easier for both institutional and retail investors to trust.

• Growth Possibility: A large share of India's REIT-eligible commercial stock still isn't listed, meaning today's numbers likely understate the market's real ceiling.

• Risk-Adjusted ROI: Steady rental yields combined with capital appreciation are outperforming several developed Asian REIT markets that posted flat or negative returns.

How does lead against China Strengthen Indian Real Estate Globally?

This shift does three things for India’s strong position.

• First, it signals to global institutional capital like pension funds, sovereign wealth funds, and insurance money that Indian commercial real estate is no longer a frontier bet; it operates like an established, liquid asset class.

• Second, it deepens the pipeline for future listings, since developers and asset owners now have a proven, well-priced exit route through REITs rather than relying solely on private equity.

• Third, it reinforces India's broader “most attractive emerging market” narrative at a time when China mainly Hong Kong continue to lose ground on foreign capital flows.

What's Next for India's REIT and Commercial Real Estate?

The next 12–24 months are likely to bring more REIT listings as developers monetise unlisted Grade-A stock. Mainly with continued GCC-driven leasing in Bengaluru, NCR, the Mumbai Metropolitan Region, Hyderabad, and Pune. Also, growing retail investor participation as REITs get folded further into mainstream portfolios under SEBI's evolving framework.

 If things continue to go this way, then India surely has the possibility to challenge China's real estate position in the global market within a few years.