India's Reit & InvIT Market Sees Surge in Managed Products

India's Reit and InvIT market is rapidly expanding, leading to the creation of new managed investment products. Asset and wealth managers are launching mutual funds, alternative investment funds (AIFs), and portfolio management services focused on these asset classes. This trend is driven by a deepening listed market and a growing pool of assets.

The Reit and InvIT market is poised to significantly grow, with projections indicating assets under management could exceed ₹20 trillion by 2030. This growth is supported by a maturing asset class with several years of performance data and an expanding range of available assets. Sponsors are increasingly utilizing Reits and InvITs to monetize assets and recycle capital.

While the market is expanding, liquidity can be a constraint for very large dedicated portfolios, with estimates suggesting manageable dedicated portfolios are around ₹800-1,000 crore. Nevertheless, the pipeline of underlying assets continues to grow, with several trusts reportedly joining the listing queue.