Real estate investment trusts (Reits) and infrastructure investment trusts (InvITs) in India are expected to double their assets under management (AUM) to over ₹20 trillion by 2030, according to livemint.com. Currently, the market comprises 32 listed trusts with a combined AUM of ₹10 trillion and a market capitalisation of ₹5 trillion.
The growth projection is driven by domestic institutions, which are set to deploy the majority of an additional ₹11.6 trillion into these investment vehicles. The market for Reits and InvITs is in its ninth year, reflecting steady expansion and increasing investor interest. The doubling of AUM highlights the growing role these trusts play in channeling capital into real estate and infrastructure sectors.
This increase in AUM is significant for the Indian investment landscape as Reits and InvITs offer a structured way for investors to access real estate and infrastructure assets, traditionally considered illiquid. The current combined market capitalisation of ₹5 trillion underscores the sector's rising prominence. The projected growth aligns with broader trends of institutional investment in alternative assets, providing more options for portfolio diversification.
The expansion to ₹20 trillion AUM by 2030 will mark a milestone for the sector, potentially attracting more domestic and foreign investors. The current market includes 32 listed trusts, and the additional ₹11.6 trillion deployment by domestic institutions will be a key factor in reaching this target, as reported by livemint.com.