India's REIT and InvIT Market Set to Triple, Targeting ₹25 Lakh Crore AUM by 2030

Industry projections indicate that India's REIT sector growth alongside Infrastructure Investment Trusts (InvITs) will witness unprecedented expansion over the next six years. The combined Assets Under Management (AUM) of these investment vehicles is expected to reach ₹25 lakh crore by 2030, representing almost a three-fold increase from current levels.

Remarkable Growth Trajectory Established

According to data released by the Indian REITs Association (IRA) and Bharat InvITs Association (BIA), the combined AUM of REITs and InvITs has already surpassed ₹9 lakh crore within just nine years of their inception. This milestone reflects the rapid acceptance of both instruments as mainstream, regulated, and globally competitive products in India's capital markets.

The investment landscape currently features five listed REITs operating in India, while 27 SEBI-registered InvITs have been established, with five publicly listed and 23 privately listed. The first InvIT was launched in 2016, followed by the fastest-growing REIT market development when the first REIT was listed in 2019.

Current Market Performance Analysis

As of 2024, the total AUM distribution shows InvITs commanding approximately ₹7 lakh crore while REITs account for around ₹2.25 lakh crore, bringing the combined total to approximately ₹9.25 lakh crore. This performance demonstrates the robust foundation established by these investment mechanisms in channeling capital into critical infrastructure and commercial real estate sectors.

Listed REIT Portfolio Expansion

India's five listed REITs include Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and Knowledge Realty Trust. These entities have emerged as transparent mechanisms for channeling capital into commercial real estate while providing investors with regulated, income-generating products.

Recent developments show Brookfield India REIT's strategic expansion, highlighting the sector's continued evolution and investor confidence.

InvIT Market Diversification

The 27 SEBI-registered InvITs channel funds into roads, power, and infrastructure assets, making them critical components of India's growth agenda. With five publicly listed and 23 privately listed InvITs, these investment vehicles have established themselves as essential funding mechanisms for the nation's infrastructure development needs.

Industry Leadership Perspective

During a joint awareness program conducted by IRA and BIA in New Delhi, IRA Chairman Alok Aggarwal emphasized that REITs have become firmly established as mainstream products. He stated that these instruments successfully bridge physical real estate with financial markets in a manner that is transparent, regulated, and globally competitive.

Strategic Growth Projections Through 2030

The projected expansion from ₹9 lakh crore to ₹25 lakh crore by 2030 is supported by several key growth drivers. Rising participation from both domestic and global investors continues to strengthen market foundations, while sustained infrastructure spending under government initiatives provides robust pipeline opportunities.

Additionally, improved trust and transparency in regulated instruments have enhanced investor confidence, contributing to the sector's mainstream adoption. The growth trajectory aligns with retail investor education initiatives that have increased market participation.

Market Evolution and Investor Confidence

The transformation from niche investment instruments to mainstream, long-term investment avenues demonstrates the maturity achieved by India's REIT and InvIT markets. This evolution positions these vehicles to play pivotal roles in funding real estate and infrastructure growth across the country.

The projected ₹25 lakh crore AUM by 2030 represents not just numerical growth but also the establishment of these instruments as cornerstone elements of India's investment landscape, supporting both economic development and investor portfolio diversification strategies.