REITs and InvITs Could Attract ₹11.6 Lakh Crore by 2030, Signalling a New Phase for Real Asset Investing in India

India’s REIT and InvIT market could be entering its most significant growth phase yet.

According to an Avendus Capital report, Real Estate Investment Trusts and Infrastructure Investment Trusts in India could attract inflows of up to ₹11.6 lakh crore by 2030, driven by increasing participation from mutual funds, insurance companies, pension funds, foreign investors, retail investors, HNIs, family offices, and corporate treasuries.

While REITs and InvITs are still relatively young asset classes in India, the report highlights that improving liquidity, supportive regulations, growing investor familiarity, and a stronger appetite for yield-oriented products could unlock the next stage of market expansion.

These instruments are increasingly being viewed as long-duration, income-generating assets that offer stable cash flows, diversification, and inflation-linked exposure.

Mutual funds are expected to be the largest source of incremental capital, with potential investments of around ₹4.5 lakh crore by 2030. Current mutual fund exposure to REITs and InvITs stands at about ₹30,000 crore, but this is expected to rise significantly as India’s mutual fund industry expands. The total mutual fund industry AUM is projected to grow from ₹73.7 lakh crore to ₹155 lakh crore by 2030, while equity and hybrid fund assets are expected to rise from ₹21.8 lakh crore to ₹66.8 lakh crore.

Insurance companies could contribute another ₹3.2 lakh crore by 2030. The report notes that insurers are among the most suitable investors for REITs and InvITs because their long-term liabilities align well with the predictable cash flows generated by listed trusts. India’s insurance asset pool is expected to grow from ₹74.4 lakh crore to ₹125.1 lakh crore by 2030, with life insurers accounting for a large share of this increase.

Pension funds are projected to add around ₹2.2 lakh crore of demand, making them the third-largest source of capital for the sector. Their long-duration investment profile makes them a natural fit for instruments that provide relatively stable, annuity-like cash flows. The Employees’ Provident Fund Organisation, with assets of ₹28.3 lakh crore, is permitted to invest in REITs and InvITs within a 5% allocation bucket, although exposure remains largely restricted to PSU-sponsored listed trusts with rating safeguards. Avendus expects these limitations to cap EPFO allocations at around 3% of projected FY30 assets.

The National Pension System, managing around ₹14.5 lakh crore, appears better positioned to increase exposure, with permission to invest in REITs and InvITs subject to a 3% cap of pension fund assets and 5% of units issued by a single trust. Exempted pension fund trusts, which collectively manage around ₹4.9 lakh crore, could also emerge as an additional source of demand.

Foreign investors, retail investors, ultra-high-net-worth individuals, and family offices could together add another ₹1.5 lakh crore by 2030. FIIs currently manage around ₹66 lakh crore of Indian equity exposure, which could rise to ₹87 lakh crore by 2030, though their participation in REITs and InvITs is expected to increase only modestly.

For retail and HNI investors, REITs and InvITs are increasingly being seen as alternatives to dividend-paying stocks and long-term bank deposits, with potential yield-led returns in the 10% to 15% range, along with exposure to real assets.

Corporate treasuries could also contribute between ₹16,000 crore and ₹23,900 crore by 2030. Indian corporates currently park significant surplus balances in fixed deposits and debt mutual funds, and REITs and InvITs could capture part of this pool, especially where companies have longer-duration surplus funds.

A key trigger for this projected growth will be liquidity. As sponsors monetise mature assets and recycle capital into new projects, sponsor ownership in listed trusts is expected to reduce. This could improve free float, increase trading liquidity, and make REITs and InvITs more attractive to large domestic institutions.

For India’s real estate and infrastructure sectors, the implications are significant.

Greater capital flows into REITs and InvITs can support monetisation of mature assets, unlock capital for new development, deepen institutional participation, and strengthen funding channels for commercial real estate, roads, power transmission, logistics, warehousing, data centres, renewable energy, and other infrastructure assets.

The projected inflows also point to a larger shift in India’s investment landscape. Real assets are moving from private ownership and balance-sheet-heavy structures towards more transparent, listed, and institutionally backed platforms.

As India’s economy expands and its infrastructure needs continue to grow, REITs and InvITs could play a critical role in bridging long-term capital with income-generating assets.

By 2030, this market may no longer be seen as niche. It could become one of the most important pillars of India’s real asset financing ecosystem.