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Avendus Capital, at its REITs and InvITs Conclave 2026 in Mumbai on 16 June 2026, projected that India's combined REIT and InvIT market could attract INR 11.6 trillion in fresh capital by 2030, with total assets under management doubling from roughly INR 9.25 trillion to INR 20 trillion. The forecast rests on an anticipated wave of new listings in FY2026–27, sustained government infrastructure spending, and SEBI's reclassification of REITs as equity instruments. India currently ranks fourth in Asia by combined REIT and InvIT market capitalisation, with five listed REITs and 17 listed InvITs.
Avendus Capital on Tuesday released a forward projection for India's REIT and InvIT sector at its annual REITs and InvITs Conclave 2026 in Mumbai, estimating that the market could attract INR 11.6 trillion in new investments and nearly double its assets under management to INR 20 trillion by 2030.As of October 2025, the sector's aggregate AUM stood at approximately INR 9.25 trillion — with InvITs accounting for INR 7 trillion and REITs along with small and medium REITs contributing the remaining INR 2.25 trillion.
India's four listed REITs have collectively distributed INR 22,818 crore to unitholders since their respective listings. Payouts in FY2024–25 grew 13 per cent year-on-year to INR 6,070 crore, while quarterly net operating income advanced 16 per cent to approximately INR 89,100 crore. The unitholder base has expanded from roughly 55,000 at inception to over 2.6 lakh today.
The InvIT segment has tracked the government's infrastructure push closely. Central government capital expenditure on infrastructure climbed from USD 12 billion in FY2015 to USD 75 billion in FY2025 — a more than six-fold increase — with infrastructure's share of GDP tripling from 0.6 per cent to 2.0 per cent. The five publicly listed InvITs manage over INR 2.4 trillion in market value and paid out INR 24,267 crore to unitholders in FY2024–25. Roads account for approximately 40 per cent of total InvIT AUM, followed by power transmission, renewable energy, telecom, and warehousing.
A cluster of new listings in FY2026–27 is expected to be the primary near-term growth driver. Two large office REITs, one logistics REIT, and three power transmission InvIT IPOs are anticipated, with the combined float estimated at INR 75,000–85,000 crore. Capital Infra Trust, whose investment manager attended the conclave, separately reported a 42 per cent year-on-year rise in AUM to INR 66,114 million for FY26, with total distributions of INR 11.60 per unit and a cash yield of 13.1 per cent.
On the regulatory front, SEBI's reclassification of REITs as equity instruments for mutual fund purposes has widened the pool of eligible domestic schemes. The regulator has also signalled its intent to facilitate REIT inclusion in broad market indices, which would open the asset class to passive fund flows. SEBI is separately in dialogue with IRDAI, PFRDA, and EPFO to enable greater institutional participation.
The National Monetisation Pipeline's next tranche, confirmed by SEBI's chairman in November 2025, is targeted at INR 10 trillion over five years higher than the INR 6 trillion in the preceding tranche with a significant share expected to route through InvIT structures. The Bharat InvITs Association projects InvIT AUM alone reaching INR 21 trillion by FY30, drawing on a pipeline of INR 16 trillion from planned infrastructure spending, INR 2.7 trillion from existing assets not yet in trusts, and INR 2.1 trillion from near-term government monetisation targets.
Despite the sector's trajectory, mutual fund exposure remains thin. Total MF investment in REITs and InvITs rose from INR 734 crore in March 2020 to nearly INR 20,000 crore in March 2025, yet this represents only 0.3 per cent of the industry's INR 65.7 trillion AUM. Only 22 of approximately 45 fund houses carry any exposure at present. The SEBI reclassification and anticipated index inclusion are widely regarded as the most direct catalysts for closing that gap.
India ranks fourth in Asia by combined market capitalisation at USD 33.2 billion, behind Japan, Singapore, and Hong Kong. The density of regulatory activity, the breadth of the infrastructure pipeline, and the scale of listings anticipated over the next two fiscal years suggest the sector is entering a more mature phase one that will test whether institutional depth and retail participation can grow in step with AUM.
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