Investment in Property and Infrastructure Trusts Surges Amid Rising Real Estate Demand
Public InvITs and REITs have seen significant growth in trading volumes and market capitalisation, reflecting increased investor confidence in these yield-generating assets.
ReitsInvitsReal EstateInfrastructureInvestmentReal Estate NewsJul 08, 2025
The data reveals a significant increase in market activity, with public InvITs recording a 128.23 percent rise in trading volumes, while public REITs saw an even more dramatic 399.54 percent surge since FY23. The growth in traded value has been equally impressive, with public InvITs expanding by 115.53 percent over the two-year period and public REITs increasing by 177.78 percent since FY23.
These figures reflect growing market confidence in these investment instruments as viable alternatives for income-seeking investors. The investor base for these instruments has also expanded, with the total number of unitholders in both REITs and InvITs combined growing by 8.23 percent in FY25, compared to 62.12 crore in FY24. Currently, five InvITs and four REITs are publicly traded in the market.
Market capitalisation figures further underscore the positive trajectory, with public REITs recording a 10 percent growth over 2023-24, while public InvITs witnessed a 4 percent increase in market capitalisation on a year-on-year basis.
Madhubani Sengupta, Head of Knowledge Services at ICRA Analytics, attributed the REIT growth to renewed institutional and retail investor appetite for commercial real estate-backed securities, supported by improved office demand and resilient rental yields. Sengupta noted that the consistent uptick in InvIT performance points to ongoing confidence in the infrastructure financing ecosystem and growing recognition of InvITs as long-term yield instruments.
The government's continued emphasis on infrastructure development and asset monetisation is expected to ensure a steady pipeline of assets for InvITs to expand their portfolios. The analyst also highlighted the potential impact of Global Capability Centres (GCCs) on the commercial real estate sector, suggesting that their rising presence is likely to boost demand for premium Grade A office spaces, thereby providing opportunities for additional commercial real estate assets to be incorporated into REITs.
Looking ahead, ICRA Analysts anticipate increased IPO activity for REITs and a trend toward private entities transitioning to public market structures, citing strong market momentum and growing interest from both institutional and retail investors. This development is viewed as indicative of increasing optimism and confidence in capital markets, as well as the growing maturity of the alternative investment space and its expanding appeal to both domestic and global investors.
Overall, the robust growth in the REIT and InvIT markets is a positive sign for the future of yield-generating investments in India, offering promising opportunities for investors seeking stable returns in a dynamic economic environment.
Frequently Asked Questions
What are REITs and InvITs?
REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) are investment vehicles that pool funds from multiple investors to invest in real estate and infrastructure projects, respectively. They provide investors with a way to earn returns from these sectors without directly owning the assets.
Why are REITs and InvITs becoming more popular?
REITs and InvITs are becoming more popular due to their ability to generate stable and predictable returns, the growing demand for commercial real estate and infrastructure, and increased investor confidence in these investment instruments.
What is the role of the government in the growth of REITs and InvITs?
The government plays a crucial role in the growth of REITs and InvITs by promoting infrastructure development, facilitating asset monetisation, and creating a favorable regulatory environment that encourages investment in these sectors.
How do Global Capability Centres (GCCs) impact the commercial real estate sector?
Global Capability Centres (GCCs) are expected to boost demand for premium Grade A office spaces, which can lead to the incorporation of additional commercial real estate assets into REITs, thereby enhancing their value and appeal to investors.
What does the future hold for REITs and InvITs?
The future of REITs and InvITs looks promising, with expectations of increased IPO activity, more private entities transitioning to public structures, and growing interest from both institutional and retail investors, driven by strong market momentum and a positive economic outlook.
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