InvITs and REITs Combined AUM Seen Doubling to Rs 20 Trillion by 2030-31

The combined assets under management of InvITs and REITs are projected to reach nearly Rs 20 trillion by 2030-31, according to ICRA's assessment. The projection indicates a doubling from the anticipated Rs 10 trillion base expected in 2025-26. This growth trajectory reflects increasing investor appetite and structural tailwinds in India's infrastructure and real estate sectors.

The expansion is anticipated to be supported by several key drivers across diverse asset categories. Infrastructure monetisation initiatives are expected to contribute significantly, alongside growth in renewable energy projects and fibre platform deployments. Additionally, commercial real estate expansion, warehousing facilities, and data centre development are positioned as major growth vectors in the projection period.

For market participants, this forecast reflects the structural transformation of India's capital markets and the maturation of alternative asset classes. InvITs and REITs represent critical vehicles for infrastructure financing and real estate investment, channeling capital toward long-duration, yield-generating assets. The projected doubling of AUM signals growing institutional participation and retail investor interest in these instruments. Traders and portfolio managers should monitor regulatory developments, interest rate trajectories, and sectoral performance metrics across infrastructure, energy, and commercial real estate domains, as these factors directly influence InvIT and REIT valuations and investor flows.

Source: Markets-Economic Times