REITs and InvITs Surge: AUM Crosses Rs 9 Lakh Crore, Eyeing Rs 25 Lakh Crore by 2030
Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in India have achieved a combined Assets Under Management (AUM) of over Rs 9 lakh crore in nine years. InvITs manage Rs 7 lakh crore, while REITs manage Rs 2.25 lakh crore. Industry bodies project growth to Rs 25 lakh crore by 2030. Currently, there are five listed REITs with a market cap of Rs 1.5 lakh crore and 27 SEBI-registered InvITs, of which five are publicly listed. REITs have distributed over Rs 24,300 crore to unitholders, while InvITs have distributed over Rs 68,000 crore.
*this image is generated using AI for illustrative purposes only.
Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have emerged as significant players in India's investment landscape, achieving a combined Assets Under Management (AUM) of over Rs 9 lakh crore in just nine years. This milestone underscores the growing investor confidence in these alternative investment vehicles.
Current AUM Breakdown
The current AUM is distributed as follows:
| Investment Trust | AUM (in Rs crore) |
|---|---|
| InvITs | 7,00,000 |
| REITs | 2,25,000 |
| Total | 9,25,000 |
Projected Growth
Industry bodies IRA and BIA have projected ambitious growth for these investment trusts:
- Combined AUM by 2030: Rs 25 lakh crore
- InvITs expected to reach: Rs 21 lakh crore
- REITs expected to reach: Rs 4 lakh crore
Market Presence
REITs
- Five listed REITs in India
- Combined market capitalization: Rs 1.5 lakh crore
- Distribution to unitholders: Over Rs 24,300 crore
InvITs
- 27 SEBI-registered InvITs
- Five publicly listed
- Distribution to unitholders: Over Rs 68,000 crore
Key Highlights
Rapid Growth: The combined AUM of REITs and InvITs has surpassed Rs 9 lakh crore in just nine years, indicating strong market acceptance and investor interest.
InvITs Leading: Infrastructure Investment Trusts are currently managing a larger portion of assets, with Rs 7 lakh crore under management compared to Rs 2.25 lakh crore for REITs.
Promising Future: Industry projections suggest a nearly threefold increase in combined AUM by 2030, reaching Rs 25 lakh crore.
Substantial Distributions: Both REITs and InvITs have been generating significant returns for unitholders, with distributions totaling over Rs 92,300 crore.
Regulatory Compliance: REITs are mandated to distribute at least 90% of their net distributable cash flows to unitholders, ensuring a steady income stream for investors.
The remarkable growth of REITs and InvITs in India reflects the increasing maturity of the country's real estate and infrastructure investment markets. These investment vehicles offer investors the opportunity to participate in large-scale, income-generating real estate and infrastructure projects, which were previously accessible primarily to institutional investors.
As these trusts continue to expand and evolve, they are likely to play an increasingly important role in channeling investments into India's real estate and infrastructure sectors, potentially contributing to the country's economic growth and development.
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