India First has introduced a new index fund tracking the Nifty REITs & Realty Index, providing investors with diversified exposure to listed REITs and real estate companies. Backed by regulatory reforms and a projected $25 billion REIT market by 2030, the fund expands access to India’s income-generating commercial real estate sector.
India’s commercial real estate investment landscape is set to evolve with the launch of the India First Index Fund, a new investment product designed to track the Nifty REITs & Realty Index. The fund offers investors a simplified way to participate in the country’s growing Real Estate Investment Trust (REIT) market while also gaining exposure to leading real estate companies. As India’s institutional property market continues to mature, the launch reflects increasing investor interest in professionally managed commercial real estate assets that generate stable rental income and long-term capital growth.
A Diversified Gateway to Commercial Real Estate
The India First Index Fund is structured to mirror the Nifty REITs & Realty Index, which currently allocates 60% to five listed REITs and 40% to major real estate companies. This balanced composition allows investors to benefit from both the recurring income generated by commercial properties and the growth potential of listed real estate developers.
The report states that the fund is “designed to track the Nifty REITs & Realty Index, providing investors with a structured way to access the commercial real estate sector.” By combining REITs with real estate stocks, the fund provides diversified exposure across multiple segments of India’s property market without requiring investors to purchase commercial assets directly.
REITs own and manage income-producing properties such as premium office buildings and data centres, distributing a significant portion of rental income to investors through regular dividends. This model has become increasingly attractive for those seeking predictable income from commercial real estate.
Strong Market Fundamentals Support Growth
India’s listed REIT market currently has an estimated market capitalisation of around $19 billion, with industry projections suggesting it could grow to $25 billion by 2030. The expansion is being supported by rising institutional participation, increasing demand for Grade A commercial offices, and continued growth in sectors such as Global Capability Centres (GCCs), technology, banking, and flexible workspaces.
The report notes that “current listed REITs in India report weighted average lease expiries between 6 and 8 years.” Longer lease tenures generally indicate stable occupancy and predictable rental cash flows, making REITs an attractive option for investors seeking steady returns from commercial property portfolios.
Regulatory Reforms Strengthen Investor Confidence
The outlook for India’s REIT market has also improved following recent regulatory developments. On January 1, 2026, REITs were officially reclassified as “Equity Related Instruments” in India, aligning the domestic framework more closely with international investment standards.
This regulatory change is expected to improve transparency and strengthen investor confidence while making REIT investments easier to understand for a broader investor base. Additionally, the pass-through tax structure remains a key advantage, allowing income to be taxed primarily at the investor level rather than the trust level.
Opportunities Balanced by Market Risks
While REITs have historically delivered distribution yields of around 5% to 7% annually, investors should recognise that returns depend on several market factors, including rental growth, occupancy levels, tenant performance, and property valuations. Since the index also allocates 40% to listed real estate companies, the fund’s performance will partly reflect broader property market cycles, residential demand, and developer fundamentals.
As more REITs enter the Indian market, the fund manager plans to adjust allocations accordingly, creating a more diversified portfolio over time. With regulatory support, growing institutional participation, and increasing demand for commercial office assets, the India First Index Fund marks another important milestone in the evolution of India’s commercial real estate investment ecosystem.
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