New Delhi, Aug 17: India’s market for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) is expected to grow significantly by 2030, with the potential to attract around ₹11.6 lakh crore in new investments, according to a recent report.
The report estimates that the combined assets under management of REITs and InvITs could increase from around ₹10 lakh crore currently to more than ₹20 lakh crore by 2030. The projected growth reflects rising opportunities in India’s real estate and infrastructure sectors.
REITs allow investors to participate in income-generating properties, particularly commercial real estate, without directly purchasing or managing those assets. InvITs follow a similar model for infrastructure projects, allowing investors to participate in assets such as roads and other large-scale infrastructure.
Several factors could support the expansion of the sector, including continued infrastructure development, growth in commercial real estate and increasing demand for long-term investment options. Greater participation from institutional investors such as mutual funds, insurance companies and pension funds could further deepen the market.
Commercial office properties are expected to remain an important part of the REIT segment, while roads and other infrastructure assets could provide significant opportunities for InvITs. As more mature and revenue-generating assets become available, the market could attract additional capital.
For investors, REITs and InvITs provide another way to gain exposure to India’s property and infrastructure growth. However, returns can vary depending on market conditions, interest rates, rental income, occupancy levels and the performance of underlying assets.
The growth of these investment structures could also benefit developers and infrastructure companies. By transferring completed assets into REITs or InvITs, companies can unlock capital and redirect funds towards new projects and expansion.
For India’s economy, the model could create a stronger connection between private investment and infrastructure development. Capital raised through these platforms can help put existing assets to productive use while supporting future projects.
If the projected expansion takes place, REITs and InvITs could become an increasingly important part of India’s financial market, giving investors greater access to large-scale assets while helping channel long-term capital into real estate and infrastructure development.
