India’s REIT and InvIT market could exceed ₹20 trillion AUM by 2030: Avendus Capital

India’s Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT) market is poised for significant expansion over the next five years, with total assets under management (AUM) expected to surpass ₹20 trillion by 2030, according to a report released by Avendus Capital.

The report highlights that India’s REIT and InvIT ecosystem could unlock an additional investment opportunity of ₹11.6 trillion, supported by growing participation from domestic institutional investors, expanding infrastructure assets, and increasing demand for stable income-generating investment instruments.

Currently, India has 32 listed REITs and InvITs with a combined AUM of approximately ₹10 trillion and a market capitalisation of nearly ₹5 trillion. Industry experts believe the sector remains at an early stage compared to developed markets such as the United States, Australia, Singapore and Japan, where business trusts contribute between 5% and 12% of GDP. In contrast, India’s REIT and InvIT market currently represents only about 1.5% of the country’s GDP.

The report estimates that domestic mutual funds could invest around ₹4.6 trillion in REITs and InvITs by 2030, while insurance companies may contribute ₹3.2 trillion and pension funds approximately ₹2.2 trillion. Analysts also point out that institutional investors have utilised only a small portion of their existing regulatory investment limits, creating substantial room for future capital deployment.

Several sectors are expected to drive the next phase of growth, including highways, office parks, retail assets, power transmission networks, renewable energy projects, telecom infrastructure and logistics facilities. The total addressable market across these segments is projected to double by the end of the decade.

Avendus Capital noted that REITs and InvITs are increasingly attracting investors seeking predictable cash flows, inflation-linked returns and long-term portfolio diversification. The report also expects additional investments from exchange-traded funds (ETFs), foreign institutional investors, high-net-worth individuals and family offices.

With India continuing to invest heavily in infrastructure and commercial real estate, REITs and InvITs are expected to play an increasingly important role in recycling capital, funding new projects and strengthening the country’s investment ecosystem over the coming decade.