Skyrocketing Interest: Public REITs and InvITs Surge Amid Investor Confidence

Investor confidence in yield-generating assets is driving exceptional growth in publicly traded Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), according to ICRA Analytics. The firm reported that trade volumes for public InvITs have surged by 128.23 percent over the past two years, while public REITs witnessed a massive 399.54 percent increase since the fiscal year 2022-23.

REITs and InvITs serve as vehicles for individual and institutional investors to invest in the real estate and infrastructure sectors without direct ownership. The traded value of public InvITs climbed by 115.53 percent, and public REITs rose by 177.78 percent over the past two years, further underscoring their growing market presence, the report highlighted.

The volume of public InvITs traded expanded from 2,735 lakh units in 2022-23 to 6,242 lakh units in 2024-25. Similarly, public REITs experienced a significant rise in volumes from 3,273 lakh units to 16,350 lakh units during the same period. The total number of unitholders in these investment vehicles increased by 8.23 percent, reaching 67.23 crore in 2024-25, compared to 62.12 crore in 2023-24, with five InvITs and four REITs currently trading publicly.

Madhubani Sengupta, Head of Knowledge Services at ICRA Analytics, noted that the market capitalization of public REITs has grown by a notable 10 percent since 2023-24, reflecting robust demand for commercial real estate-backed securities. Meanwhile, public InvITs saw a 4 percent rise in market capitalization year-over-year.

The consistent uptick in traded volume, value, and market capitalization signifies strong market participation and a conducive investment climate. "These trends mark the growing sophistication of India's alternative investment landscape, attracting both domestic and international investor interest," ICRA Analytics stated.

(With inputs from agencies.)