Investor Confidence Boosts Growth in REITs and InvITs
A recent study reveals a significant surge in the trading volumes of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) over the past two years, driven by growing investor confidence in yield-generating assets.
ReitsInvitsReal EstateInfrastructureInvestment TrustsReal EstateJul 08, 2025
The total volumes of public InvITs traded increased by 128.23 per cent in the last two years, while that of public REITs surged by a whopping 399.54 per cent since FY2023. This surge highlights the increasing popularity of these investment vehicles among both individual and institutional investors.
Real Estate Investment Trusts and Infrastructure Investment Trusts are investment vehicles that allow investors to participate in the real estate and infrastructure sectors, respectively, without directly owning properties or infrastructure assets. These trusts provide a way for investors to diversify their portfolios and benefit from rental income and capital appreciation in the real estate and infrastructure markets.
In terms of traded value, public InvITs grew by 115.53 per cent in the last two years, while public REITs increased by 177.78 per cent since FY2023. The volumes of public InvITs traded, which stood at 2735 lakh units in FY23, increased to 6242 lakh units in FY25. On a year-on-year basis, volumes traded increased by 20.52 per cent from 5179 lakh units in FY24.
The volumes of public REITs traded increased from a mere 3273 lakh units in FY23 to 16,350 lakh units in FY25. On a year-on-year basis, it grew by 230.10 per cent from 4953 lakh units in FY24. The public InvITs' traded value stood at Rs 6121 crore in FY25 as against Rs 2840 crore in FY23, while REITs was at Rs 31,206 crore in FY25 as compared with Rs 11,234 crore in FY23.
On a year-on-year basis, InvITs' traded value grew by 14.41 per cent from Rs 5350 crore in FY24, while that of REITs increased by 157.47 per cent from Rs 12,120 crore in FY24. The total number of unitholders in both these instruments put together increased by 8.23 per cent to 67.23 crore in FY25, as against 62.12 crore in FY24.
Currently, there are five InvITs and four REITs that are publicly traded. This growth in trading volumes and traded values underscores the increasing attractiveness of these investment vehicles, which offer a stable and consistent income stream to investors. As the real estate and infrastructure sectors continue to evolve, the demand for REITs and InvITs is expected to remain strong, providing investors with a valuable addition to their investment portfolios.
Frequently Asked Questions
What are REITs and InvITs?
REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) are investment vehicles that allow investors to participate in the real estate and infrastructure sectors, respectively, without directly owning properties or infrastructure assets. They provide a way to diversify portfolios and benefit from rental income and capital appreciation.
What is the growth rate of public InvITs and REITs in the last two years?
The total volumes of public InvITs traded increased by 128.23 per cent, while public REITs surged by 399.54 per cent since FY2023. In terms of traded value, public InvITs grew by 115.53 per cent, and public REITs increased by 177.78 per cent in the last two years.
How many InvITs and REITs are currently publicly traded?
Currently, there are five InvITs and four REITs that are publicly traded.
What factors are driving the growth in REITs and InvITs?
The growth in REITs and InvITs is driven by rising investor interest and growing confidence in yield-generating assets. These investment vehicles offer a stable and consistent income stream, making them attractive to both individual and institutional investors.
What is the total number of unitholders in REITs and InvITs?
The total number of unitholders in both REITs and InvITs increased by 8.23 per cent to 67.23 crore in FY25, as compared to 62.12 crore in FY24.
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