Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) continue to grow steadily in India, offering strong distributions and expanding portfolios, though retail investor participation remains low compared to global standards. Industry bodies emphasize that awareness programs and investor education are key to improving retail engagement.
REITs Show Robust Growth
According to the Indian REITs Association (IRA), five listed REITs in India now have a combined market capitalisation of around ₹1.5 lakh crore and an AUM of ₹2.25 lakh crore as of Q4 FY25. Their portfolios cover over 175 million sq. ft. of Grade A office and retail space.
Since their inception, these REITs have distributed more than ₹24,300 crore to unitholders, with Q1 FY26 alone seeing ₹1,559 crore in distributions across 2.7 lakh investors, marking a 13% year-on-year increase.
Despite these achievements, retail penetration in India lags behind global benchmarks, where REITs account for over 50% of the listed real estate market capitalisation.
InvITs Follow a Similar Trend
The Bharat InvITs Association (BIA) reported that out of 27 SEBI-registered InvITs, five are publicly listed with a market capitalisation exceeding ₹2.4 lakh crore and AUM of over ₹7 lakh crore as of March 2025.
Since inception, InvITs have distributed over ₹68,000 crore, including ₹24,267 crore in FY25 alone. However, retail investors continue to hold a marginal share, with institutional investors dominating the segment.
Industry Perspective
Alok Aggarwal, Chairman of the Indian REITs Association, noted that REITs have matured into a reliable investment avenue for both institutional and retail investors, offering steady income, transparency, and exposure to commercial real estate.
Industry bodies emphasized that enhancing investor awareness and targeted education programs could help increase retail participation, bringing India closer to global standards in REIT and InvIT investments.
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