Indian REIT Market Surges Past ₹1.5 Lakh Crore Milestone
The Indian Real Estate Investment Trusts (REITs) market has achieved a significant milestone, with the total market capitalisation of all five listed REITs crossing ₹1.5 lakh crore, marking a robust growth in the sector.
ReitsMarket CapitalisationReal EstateInvestmentInfrastructureReal Estate NewsSep 05, 2025
The five listed REITs are Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and the newly listed Knowledge Realty Trust. These REITs have demonstrated steady cash generation and disciplined governance, making them attractive investment options.
Since their inception, the first four REITs have distributed more than ₹24,300 crore to unitholders till Q1 FY26, highlighting their consistent performance and reliability. As per the Indian REITs Association report, total distributions by these four REITs were ₹1,559 crore to over 2.7 lakh unitholders during the first quarter of the current financial year (Q1 FY26), marking a year-on-year increase of over 13% compared to ₹1,371 crore distributed in Q1 FY25.
The data shows that the Indian real estate and infrastructure investment landscape has gained strong traction with REITs and Infrastructure Investment Trusts (InvITs) emerging as attractive avenues for investors. REITs are tax-efficient investment vehicles and distribute at least 90% of their net distributable cash flows on a semi-annual basis. Investors can purchase units for as low as ₹100-500 per unit.
As of Q4 FY25, the Indian REIT market had an AUM of ₹2.25 lakh crore, while the combined market capitalisation of the five listed REITs crossed ₹1.5 lakh crore on August 18, 2025. Together, these REITs manage a portfolio of over 175 million square feet of Grade A office and retail space as of Q1 FY26.
On the other hand, InvITs provide exposure to a wider set of infrastructure assets, including roads, power transmission and generation, pipelines, telecom, optical fibre, and warehousing. They are also tax-efficient and, like REITs, must distribute at least 90% of their net distributable cash flows semi-annually. As of March 2025, InvITs manage gross assets worth over ₹7 lakh crore, with a market capitalisation exceeding ₹2.4 lakh crore. Since inception, InvITs have cumulatively distributed over ₹68,000 crore to unitholders till March 2025.
InvITs distributed a total of ₹24,267 crore to unitholders in FY25, reaffirming their ability to generate regular, predictable cash flows for investors. With the Government of India’s ambitious national infrastructure pipeline and visionary national monetisation pipeline, InvITs have the potential to achieve an AUM of ₹21 lakh crore by 2030, as per the Indian REITs Association report.
Frequently Asked Questions
What are REITs?
REITs, or Real Estate Investment Trusts, are investment vehicles that allow individuals to invest in large-scale, income-producing real estate. REITs are publicly traded, and investors can buy and sell shares on stock exchanges.
How many REITs are listed in India?
As of the latest data, there are five REITs listed in India: Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and the newly listed Knowledge Realty Trust.
What is the current market capitalisation of listed REITs in India?
The total market capitalisation of all five listed REITs in India has crossed ₹1.5 lakh crore, marking a significant milestone in the sector.
What are the benefits of investing in REITs?
REITs offer several benefits, including regular income through dividends, tax efficiency, and the ability to invest in large-scale real estate projects with relatively low capital. They also provide diversification and liquidity to investors.
What is the future outlook for REITs in India?
The future outlook for REITs in India is positive, with the potential for significant growth driven by the government's infrastructure and monetisation pipelines. The Indian REITs Association predicts that InvITs could achieve an AUM of ₹21 lakh crore by 2030.
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