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India's InvITs, REITs double AUM in five years amid strong demand

#Taxation & Finance News#Commercial#India
Last Updated : 20th Aug, 2025
Synopsis

The total assets under management (AUM) of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) in India witnessed significant growth, nearly touching USD 94 billion in the past fiscal year, compared with USD 42.1 billion recorded in 2019-20, as highlighted in a recent report by Knight Frank. With five REITs and 17 InvITs now listed on Indian stock exchanges, the market capitalisation of these instruments stood at USD 33.2 billion by the end of July 2025.

According to a report released by real estate consultancy Knight Frank India earlier this week, the AUM of InvITs in the country has expanded to USD 73.3 billion during the 2024-25 fiscal year. Meanwhile, the AUM of REITs touched USD 20.6 billion. Together, these two investment vehicles brought the combined AUM to USD 93.9 billion, a substantial rise from USD 42.1 billion in the 2019-20 financial year.


The report highlighted that by the end of July 2025, the combined market capitalisation of REITs and InvITs stood at USD 33.2 billion. It was also emphasised that InvITs are increasingly expected to play a critical role in financing India's infrastructure goals over the coming years. Knight Frank projected that the AUM of InvITs could potentially reach USD 258 billion by 2030, underlining the growing significance of this sector.

The consultancy attributed this anticipated growth to several factors, including higher allocations from institutional investors, greater participation from domestic pension and insurance funds, expanding foreign investments, and increasing awareness among retail investors. Both REITs and InvITs remain crucial vehicles that provide opportunities for investors to gain exposure to real estate and infrastructure assets without the need to directly own physical property.

The sharp increase in AUM over the past five years illustrates both growing investor confidence and regulatory support for these instruments. With projections indicating that InvITs alone could reach USD 258 billion in AUM by 2030, the sector appears well-positioned to attract wider investor participation and strengthen its contribution to India's long-term growth.

Source - PTI

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