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Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have gained significant traction in India, with their combined assets under management surpassing INR 9 lakh crore over the past nine years. Industry bodies, the Indian REITs Association (IRA) and the Bharat InvITs Association (BIA), projected that this figure may rise to INR 25 lakh crore by 2030. The associations emphasised the strong investor confidence in these instruments, supported by robust returns and transparent structures, making them integral to India's capital and infrastructure financing landscape.
REITs and InvITs have been steadily growing as investment instruments in India, with their combined assets under management crossing INR 9 lakh crore in the past nine years, according to estimates shared by the Indian REITs Association (IRA) and the Bharat InvITs Association (BIA). The associations projected that the combined AUM could touch INR 25 lakh crore by 2030, reflecting their rising importance in the country's financial system. Advertisement
Currently, there are five listed REITs in India - Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and Knowledge Realty Trust. The first REIT in the country was listed in 2019. On the infrastructure side, there are 27 Sebi-registered InvITs, of which five are publicly listed and 23 are privately placed. The first InvIT was registered in 2016.
Industry representatives highlighted that the present AUM of InvITs is around INR 7 lakh crore, while REITs hold approximately INR 2.25 lakh crore. The IRA noted that the combined market capitalisation of the five listed REITs stands at around INR 1.5 lakh crore, underlining growing investor faith in these instruments and their ability to provide stable and predictable cash flows to both institutional and retail investors.
Alok Aggarwal, Chairman of the IRA and Managing Director and Chief Executive Officer of Brookfield India Real Estate Trust, remarked that REITs had become firmly established as a mainstream product, linking physical real estate with financial markets in a transparent and regulated manner. He pointed out that their success also makes them globally competitive.
On the infrastructure front, NS Venkatesh, CEO of the BIA, explained that InvITs had emerged as a structured and transparent investment platform, well-aligned with India's infrastructure financing requirements. With steady growth in sectors such as roads, energy, pipelines, telecom, fibre optics and warehousing, he stated that InvITs could achieve an AUM of INR 21 lakh crore by 2030, while REITs could account for around INR 4 lakh crore of the projected total.
Data released by the associations showed that REITs had distributed over INR 24,300 crore to unitholders until the first quarter of FY26, while InvITs cumulatively distributed more than INR 68,000 crore until March 2025. By regulation, REITs are mandated to distribute at least 90 per cent of their net distributable cash flows to unitholders, reinforcing their investor-friendly nature.
With increasing participation from both institutional and retail investors, these instruments have become recognised for their transparency, predictability, and capacity to generate stable returns. Projections from industry bodies suggest that their collective assets under management could rise significantly by 2030, establishing them as a cornerstone in bridging the gap between capital markets and large-scale physical assets, while also strengthening India's long-term financing ecosystem.
Source - PTI
5th Jun, 2025
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