India REIT InvIT market eyes major expansion

India’s market for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) could expand two to three times by 2030, according to an assessment cited by wealth management analysts. The projected growth reflects rising institutional participation, expanding commercial real estate and infrastructure assets, and regulatory changes that are making these vehicles more relevant to mainstream capital markets.

The India REIT InvIT market has moved well beyond its early niche. As of September 2025, the Securities and Exchange Board of India (SEBI) said India had 23 listed InvITs and five listed REITs, with combined assets under management exceeding ₹9 lakh crore. The trusts span offices, warehouses, roads, power transmission, renewable energy and other infrastructure assets.Fund mobilisation has continued to demonstrate the scale of investor appetite. SEBI data shows that REITs raised ₹9,300 crore and InvITs ₹21,025.66 crore during April 2025-March 2026. By June 2026, cumulative fund mobilisation recorded for the financial year had already reached ₹9,831.78 crore across the two categories, although the figures cover only funds raised through specified market mechanisms and should not be treated as total AUM.

A separate industry assessment has estimated that the combined REIT and InvIT market could attract another ₹11.6 lakh crore by 2030, potentially taking AUM beyond ₹20 lakh crore. That projection assumes stronger allocations from mutual funds, insurers, pension funds and other long-duration investors.Regulation is also reshaping the market. SEBI’s decision to classify REITs as equity while retaining InvITs as hybrid instruments is intended to improve the fit between these products and institutional investment frameworks. For REITs, the change could make listed commercial property more visible to equity-oriented funds and broaden the pool of capital available for income-producing real estate.The significance extends beyond investors. REITs can help owners recycle capital from operational offices, retail assets and other income-generating properties into new development. InvITs can perform a similar function for roads, transmission networks and renewable infrastructure. SEBI has specifically identified asset monetisation as a mechanism that can release capital for additional infrastructure investment.

For cities, however, larger capital flows are not automatically a measure of better urban development. More investment in commercial districts, transport networks and energy infrastructure can support employment and productivity, but projects still need efficient land use, public transport access, resilient utilities and lower-carbon construction.The India REIT InvIT market is therefore entering a potentially important phase. Its success by 2030 will depend not only on how quickly AUM grows, but on whether the capital reaches productive assets that improve urban services, strengthen infrastructure resilience and generate durable economic value without transferring excessive costs to communities or public systems.

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India REIT InvIT market eyes major expansion