Why Have Public REITs and InvITs Captivated Investors in India Over the Last Two Years?
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Synopsis
The remarkable growth of public REITs and InvITs in India has captured investor attention over the past two years, showcasing an increase in volumes and market capitalization that reflects a thriving real estate and infrastructure landscape.
Key Takeaways
- Public REITs trading volumes increased by 399.54 percent.
- Public InvITs trading volumes surged by 128.23 percent.
- Market capitalization of public REITs grew by 10 percent.
- Five InvITs and four REITs are currently publicly traded.
- Overall unitholders increased by 8.23 percent.
Mumbai, July 7 (NationPress) The trading volumes of public InvITs (Infrastructure Investment Trusts) have seen a remarkable increase of 128.23 percent over the past two years, while public REITs (Real Estate Investment Trusts) skyrocketed by an astonishing 399.54 percent since FY23, according to a report released by ICRA Analytics on Monday.
The surge in investor enthusiasm, driven by a growing confidence in yield-generating assets, has significantly boosted the trading volumes of publicly traded REITs and InvITs during this period.
REITs and InvITs serve as investment vehicles that enable both individual and institutional investors to engage in the real estate and infrastructure sectors without the need to directly own properties or infrastructure assets.
“The market capitalization of public REITs has experienced a robust growth of 10 percent throughout FY2024. This impressive growth highlights a renewed appetite among institutional and retail investors for securities backed by commercial real estate, bolstered by an uptick in office demand and stable rental yields,” stated Madhubani Sengupta, Head-Knowledge Services at ICRA Analytics.
In terms of trading value, public InvITs expanded by 115.53 percent over the last two years, while public REITs increased by 177.78 percent since FY2023.
The trading volumes for public InvITs rose from 2,735 lakh units in FY23 to 6,242 lakh units in FY25.
Year-over-year, trading volumes increased by 20.52 percent from 5,179 lakh units in FY24. The trading volumes of public REITs surged from just 3,273 lakh units in FY23 to 16,350 lakh units in FY25, reflecting a remarkable year-on-year growth of 230.10 percent from 4,953 lakh units in FY24, as detailed in the report.
The traded value for public InvITs reached Rs 6,121 crore in FY25, compared to Rs 2,840 crore in FY23; while REITs amounted to Rs 31,206 crore in FY25, up from Rs 11,234 crore in FY23.
On a year-over-year basis, the traded value of InvITs grew by 14.41 percent from Rs 5,350 crore in FY24, and the traded value of REITs rose by 157.47 percent from Rs 12,120 crore in FY24.
The total number of unitholders for both instruments combined experienced an increase of 8.23 percent, reaching 67.23 crore in FY25, up from 62.12 crore in FY24. Currently, there are five InvITs and four REITs publicly traded, according to the report.
Point of View
It's evident that the growth in these sectors signifies a robust shift in investor confidence. The substantial increases in trading volumes and market capitalization suggest a healthy appetite for yield-generating assets, which could shape India's economic landscape for years to come.
NationPress
25/07/2025
Frequently Asked Questions
What are InvITs and REITs?
InvITs (Infrastructure Investment Trusts) and REITs (Real Estate Investment Trusts) are investment vehicles that allow individuals and institutions to invest in infrastructure and real estate sectors without directly owning physical assets.
How much have public REITs and InvITs grown recently?
Public REITs have surged by 399.54 percent and InvITs have increased by 128.23 percent in trading volumes over the last two years.
What factors are driving the growth of REITs and InvITs?
The growth is primarily driven by rising investor interest and confidence in yield-generating assets, supported by increases in office demand and resilient rental yields.
