India’s Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) could attract an additional investment pool of approximately Rs 11.6 lakh crore by 2030, while assets under management (AUM) are expected to more than double to over Rs 20 lakh crore, according to a report by Avendus Capital.
Current State and Global Comparison
The report, titled “Trust the Structure: REITs, InvITs and the Real Return Imperative”, describes India’s listed real assets ecosystem as still at an early stage despite rapid growth. Current AUM stands at around Rs 10 lakh crore, comprising Rs 2.97 lakh crore in REIT assets and Rs 7.13 lakh crore in InvIT assets. Market capitalisation is approximately Rs 5 lakh crore.
India’s business trust market remains significantly underpenetrated globally. According to Avendus, India’s REIT and InvIT market capitalisation represents only 1.5 per cent of GDP, compared with 5 per cent to 12 per cent in several developed markets.
Growth Projections and Drivers
By 2030, the asset class could be supported by an additional investment pool of approximately Rs 11.6 lakh crore across mutual funds, insurance companies, pension funds, foreign investors, retail investors and corporate treasuries. The report also estimates that REITs and InvITs themselves could surpass Rs 20 lakh crore of AUM by 2030, driven by growth in existing real estate and infrastructure sectors.
Key growth drivers identified include:
- Infrastructure expansion
- Rising financialisation of household savings
- Regulatory reforms
- Increasing participation from institutional investors
| Segment | Current AUM (2026) | Projected AUM (2030) |
|---|---|---|
| Office REITs | Rs 2.9 lakh crore | Rs 6 lakh crore |
| Road InvITs | Rs 3.2 lakh crore | Rs 8.8 lakh crore |
The National Infrastructure Pipeline 2.0 envisages around Rs 17 lakh crore of projects between FY25 and FY28, creating a massive need for long-duration capital.
Institutional Capital and Primary Market
India’s domestic long-duration institutional capital pool has utilised only about 7.5 per cent of the available regulatory limits for investments in REITs and InvITs, according to the report. Full utilisation could redirect approximately Rs 7 lakh crore of additional flows, which is about 2.6 times the current free float market cap of all REITs and InvITs.
The sector also has the potential to create an annual primary market opportunity exceeding Rs 1 lakh crore, highlighting the scale of capital formation these structures can facilitate.
“In just 9 years, India’s REIT and InvIT market has scaled to nearly Rs 10 lakh crore of assets under management and approximately Rs 5 lakh crore of market capitalisation. Yet, based on our estimates, the next phase of growth could be substantially larger,” the report stated.
Implications for Finance Executives
For treasuries and institutional investors, the report signals a significant expansion in investable assets within India’s listed real asset space. The underutilisation of regulatory limits points to a large pipeline of potential capital flows. Infrastructure financing via InvITs is seen as critical, as “India needs infrastructure at a scale that government budgets alone cannot fund; the role of InvITs is critical in the proper recycling and allocation of capital,” the report said. As the ecosystem matures, REITs and InvITs are likely to become increasingly important in strategic asset allocation for long-duration portfolios.
