India's REITs & InvITs to Surge 2-3x by 2030

India's Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are projected to experience substantial growth, potentially expanding their assets under management (AUM) by two to three times from current levels by 2030. This forecast suggests a significant increase in investment opportunities within these sectors.

The current AUM for REITs, which focus on office and retail assets, is around Rs 3.2 lakh crore. Projections indicate this could rise to approximately Rs 6.8 lakh crore by 2030. For InvITs, covering infrastructure like roads and transmission lines, the current AUM of about Rs 5 lakh crore is anticipated to grow to around Rs 13.4 lakh crore by the same year.

This potential expansion is attributed to the under-penetration observed in several key infrastructure segments, including roads, transmission lines, solar capacity, natural gas pipelines, and warehousing. The listed real asset universe in India has broadened, now encompassing office parks, roads, renewables, and telecom towers, offering diverse investment avenues.

Investors are increasingly drawn to REITs and InvITs due to their ability to provide predictable cash flows in uncertain market conditions. As a regulated route to investing in real assets, these trusts offer exposure to essential Indian infrastructure and real estate.

Performance data indicates that the Nifty REITs & InvITs Total Returns Index delivered a five-year compound annual growth rate (CAGR) of 12.73% as of July 31, 2026. This performance surpasses the Nifty 50's 10.41% CAGR over the same period, albeit lower than the Nifty Realty Index's 18.17% CAGR.

Crucially, REITs and InvITs have exhibited lower volatility. Their five-year standard deviation stood at 8.89%, considerably less than the Nifty 50's 13.82% and the Nifty Realty index's 28.07%. This characteristic positions them as a balanced investment option, offering a middle ground between steady income and market risk. Investors are advised to evaluate each REIT and InvIT based on the specific underlying asset class and its associated risks and returns.