India's REIT and InvIT market set to cross ₹20 lakh crore AUM by 2030
Synopsis
India's REIT and InvIT market — currently at just 1.5 per cent of GDP and nine years into its growth cycle — could more than double its AUM to ₹20 lakh crore by 2030. With domestic institutions having used only 7.5 per cent of their regulatory headroom, the untapped opportunity runs to ₹7 lakh crore before a single new rule is written.
Key Takeaways
India's REIT and InvIT market is projected to add ₹11.6 lakh crore in investments over the next five years, per an Avendus Capital report dated 16 June .
Combined AUM is expected to surpass ₹20 lakh crore by 2030 , up from ₹10 lakh crore currently across 32 listed trusts .
Domestic mutual funds ( ₹4.6 lakh crore ), insurers ( ₹3.2 lakh crore ), and pension funds ( ₹2.2 lakh crore ) are the primary projected contributors.
Domestic institutions have used only 7.5 per cent of regulatory limits, leaving an incremental opportunity of ₹7 lakh crore .
India's market at 1.5 per cent of GDP compares to 5–12 per cent in mature markets like the US, Australia, Singapore, and Japan.
Passive ETF products could add over ₹24,000 crore with just a 2 per cent incremental allocation.
India's real estate investment trust (REIT) and infrastructure investment trust (InvIT) market is poised to unlock an additional ₹11.6 lakh crore in investments over the next five years and surpass ₹20 lakh crore in assets under management (AUM) by 2030, according to a report released on Tuesday, 16 June by investment bank Avendus Capital. The findings signal a structural shift in how India's institutional capital is being deployed into income-generating assets.
Where the Capital Will Come From
Domestic mutual funds are projected to deploy approximately ₹4.6 lakh crore into REITs and InvITs by 2030, while insurance companies are expected to contribute around ₹3.2 lakh crore. Domestic pension funds are anticipated to add a further ₹2.2 lakh crore to the pool.
Notably, domestic institutional investors have collectively utilised only 7.5 per cent of their existing regulatory limits for investing in REITs and InvITs — implying an incremental untapped opportunity of roughly ₹7 lakh crore within current frameworks alone.
Supply-Side Growth Across Sectors
On the supply side, the total addressable market (TAM) for infrastructure categories including roads, office space, retail, power transmission, renewables, telecom, and logistics is expected to double by 2030 — from ₹10 lakh crore in 2026 to an estimated ₹20 lakh crore. This broad-based sectoral expansion is expected to generate a steady pipeline of listable assets for new and existing trusts.
India's Market Remains Underpenetrated
Despite the growth trajectory, India's REIT and InvIT market currently stands at just 1.5 per cent of GDP — well below mature markets such as the United States, Australia, Singapore, and Japan, where business trusts account for 5 per cent to 12 per cent of GDP. The gap underscores the scale of potential headroom as regulatory and market conditions evolve.
Gaurav Sood, Managing Director and Head of Equity Capital Markets at Avendus Capital, noted that India's REIT and InvIT market is in the ninth year of its multi-decadal growth journey, with 32 listed trusts currently representing an AUM of ₹10 lakh crore and a combined market capitalisation of ₹5 lakh crore. 'As investors globally are reassessing portfolio construction amid structurally higher interest rates, income-generating structures such as REITs and InvITs are emerging as one of the most significant long-term opportunities in India's capital markets,' he said.
Role of Passive Products and New Avenues
Gaurav Arora, Managing Director and Head of Infrastructure and Real Assets Investment Banking at Avendus Capital, said REITs and InvITs are 'uniquely positioned to financialise cash-generating core assets and recycle capital to develop the next generation of projects.' The report also highlighted that passive ETF products could channel over ₹24,000 crore (approximately ₹240 billion) into the asset class with just a 2 per cent incremental allocation — broadening retail and institutional participation alike.
With regulatory limits largely underutilised and supply pipelines expanding across critical infrastructure sectors, the coming five years are shaping up as a defining window for India's trust-based investment market.
Point of View
But the most revealing number is the one that gets least attention: domestic institutions have deployed just 7.5 per cent of their permitted REIT and InvIT limits. That is not a market constraint — it is a behavioural and structural one, rooted in familiarity gaps and yield benchmarking against fixed-income alternatives. The ₹20 lakh crore AUM target by 2030 is achievable on paper, but it requires insurance and pension regulators to actively encourage allocation shifts, not merely permit them. India's 1.5 per cent of GDP penetration versus 5–12 per cent in comparable markets is less a gap and more an indictment of how slowly institutional capital has warmed to listed infrastructure trusts despite nearly a decade of track record.
NationPress
13 Aug 2026
Frequently Asked Questions
What is the projected size of India's REIT and InvIT market by 2030?
India's REIT and InvIT market is projected to surpass ₹20 lakh crore in assets under management by 2030, adding ₹11.6 lakh crore in new investments over the next five years, according to an Avendus Capital report released on 16 June.
Who are the major domestic investors expected to drive REIT and InvIT growth?
Domestic mutual funds are projected to deploy ₹4.6 lakh crore, insurance companies ₹3.2 lakh crore, and pension funds ₹2.2 lakh crore into REITs and InvITs by 2030, according to the Avendus Capital report.
How underpenetrated is India's REIT and InvIT market compared to global peers?
India's REIT and InvIT market stands at 1.5 per cent of GDP, significantly below mature markets such as the United States, Australia, Singapore, and Japan, where business trusts account for 5 to 12 per cent of GDP.
What is the untapped opportunity within existing regulatory limits?
Domestic institutional investors have utilised only 7.5 per cent of their existing regulatory limits for REIT and InvIT investments, implying an incremental opportunity of approximately ₹7 lakh crore without any change in rules.
Which sectors are expected to supply new REIT and InvIT assets by 2030?
Roads, office space, retail, power transmission, renewables, telecom, and logistics infrastructure are expected to double their combined total addressable market from ₹10 lakh crore in 2026 to an estimated ₹20 lakh crore by 2030, providing a robust pipeline of listable assets.
