Institutional investors are confident of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) as evidenced by robust fund-raising, growth in AUM and market capitalization, favorable ratings, and active regulatory support.
However, retail investor participation remains nascent due to low awareness, limited options, and concerns over returns and market maturity. To address these gaps, the Indian REITs Association (IRA) and Bharat InvITs Association (BIA) are aiming at enhancing investor understanding of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). They seek to educate investors, promote the adoption of REITs and InvITs, strengthen the operating and regulatory environment, deepen capital markets, and increase overall investor awareness.
Understanding REITs and InvITs
Real Estate Investment Trusts (REITs) are investment vehicles that own or operate income-generating real estate, enabling investors to earn a share of the income produced without directly purchasing the properties. The five publicly listed REITs in India are Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and Knowledge Realty Trust.
Similarly, Infrastructure Investment Trusts (InvITs) own, operate, and maintain revenue-generating assets in various infrastructure sectors such as roads, power transmission & generation, pipelines, telecoms, optical fibre and warehousing. InvITs promote democratic ownership of large infrastructure assets, providing investors with a safer avenue to participate in the country’s infrastructure growth. They also release capital for developers, enabling reinvestment into new projects. Currently, of the 27 SEBI-registered InvITs, 5 are publicly listed on the stock exchanges, while 23 are privately listed.
Both REITs and InvITs are regulated by SEBI and play a pivotal role in driving growth in India’s real estate and infrastructure sectors.
Alok Aggarwal, Managing Director & CEO of Brookfield India Real Estate Trust and Chairman of the Indian REITs Association, said, “India’s REIT market has moved beyond its early phase to become a reliable investment avenue for both institutional and retail investors. Since their inception, these first four REITs have distributed more than Rs24,300 crore to unitholders, demonstrating steady cash generation and disciplined governance. Building on this foundation, now five listed REITs command a combined market capitalisation of approx. Rs. 1.5 lakh crore, reflecting growing confidence in the asset class and its ability to deliver stable, predictable distributions. By regulation, REITs are required to distribute at least 90% of their net distributable cash flows to unitholders on a half-yearly basis, ensuring a steady income stream. Additionally, investors benefit from the potential capital appreciation of their units, making REITs an attractive and balanced investment option. As the ecosystem evolves, diversification across sectors and cities will define the next phase of growth, positioning REITs as a mainstream asset class in India and a critical bridge between physical real estate and financial markets.”
NS Venkatesh, CEO, Bharat InvITs Association stated, “InvITs have emerged as a structured and transparent investment platform, well-suited to India's evolving infrastructure financing needs. They have created a distinct and credible asset class that brings long-term capital into infrastructure while offering stable returns to investors. The InvIT industry in India has witnessed significant growth, with 27 InvITs registered and cumulative distributions of over Rs 68,000 crore made since inception, underscoring its scale, stability, and increasing investor confidence. With increasing participation from diverse investor categories and a strong regulatory oversight and support from SEBI, InvITs are poised to play an integral role in supporting India’s infrastructure goals.”
Highlights of Indian REITs:
- REITs are tax-efficient investment vehicles, distribute at least 90% of their net distributable cash flows on a semi-annual basis
- Affordability: Investors can purchase units for as low as Rs 100– Rs 500 per unit
- AUM: Indian REIT market stands at Rs. 2,25,000 crores as of Q4 FY25
- Market Cap: The combined market capitalisation of all five listed REITs crossed Rs. 1.5 Lakh Crores as of market close on 18 August 2025
- Portfolio Scale: More than 175 million square feet of Grade A office and retail space across four REITs as of Q1 FY26
Distributions:
Since inception, the four REITs have cumulatively distributed over Rs. 24,300 crores to unitholders till Q1 FY26
Total distributions were Rs. 1,559 crores to over 2.7 lakh unitholders during the first quarter of the current financial year (Q1 FY26), marking a year-on-year increase of over 13% compared to Rs. 1,371 crores distributed in Q1 FY25
Highlights of Indian InvITs:
- Tax Efficiency: InvITs are tax-efficient investment vehicles, mandatorily required to distribute at least 90% of their net distributable cash flows on a semi-annual basis
- Operational Assets: At least 80% of an InvIT’s portfolio consists of operational revenue generating assets, thus circumventing the risk of under-construction exposure
- Varied Infrastructural Sectors: InvITs provide avenue to investors to gain exposure to varied classes of assets like roads, power transmission and generation, pipelines, telecom, optical fibre and warehousing.
- AUM & Market Cap.: InvITs manage gross assets worth over Rs 7,00,000 crore, with a market capitalisation exceeding Rs 2,40,000 crore (as of March 2025)
Distributions:
Since inception InvITs have cumulatively distributed over Rs 68,000 crores to unitholders till March 2025
InvITs distributed a total of Rs 24,267 crore to unitholders in FY 2024–25, reaffirming their ability to generate regular, predictable cash flows for investors.
The Way Forward
Many Indian retail investors still aren’t fully aware of what REITs & InVITs are, how they differ from mutual funds, or why they might be safer than directly buying property/infra projects. With only 4 listed REITs and a handful of InVITs, the product universe is still too small to build mindshare like mutual funds or equities.
However, with SEBI Reforms like reduced minimum investment for REITs (Rs50,000 → Rs15,000; now just 1 unit), introduction of SM REITs (Small & Medium REITs) to expand access to smaller property pools and Mandatory disclosure, valuation norms, and investor-friendly distribution rules (90% payout), the next 3–5 years will likely see retail participation rising steadily. In addition, with the Government of India’s ambitious National Infrastructure Pipeline and visionary National Monetization Pipeline, InvITs have the potential to achieve an AUM of Rs21 lakh crore by 2030.
