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REITs & InvITs Outperform Nifty50 with 19.55% Returns in 2025

Listed Real Estate and Infrastructure Investment Trusts significantly outperformed traditional benchmarks in 2025, delivering a 19.55% return on an equal-weight basis. REITs led the segment with an exceptional 29.68% return, supported by robust leasing activity and stable yields. Power InvITs also posted strong gains of 20.22%, while Road InvITs trailed at 6.55%. The performance highlights a shift in investor preference towards yield-oriented instruments amid the interest rate environment.

Key Points: REITs, InvITs Beat Nifty50 Returns in 2025: ICRA Report

  • REITs delivered 29.68% return
  • Power InvITs posted 20.22%
  • Outperformed Nifty50 TRI (11.42%)
  • Investor shift to yield-oriented assets
2 min read

India's REITs and InvITs surpass traditional indices in giving returns in 2025

REITs and InvITs delivered 19.55% returns in 2025, outperforming Nifty50 TRI. REITs surged to 29.68%, driven by strong leasing and stable yields.

"REITs nearly doubled their returns... reflecting sustained leasing momentum and consistent yield profiles - Madhubani Sengupta"

Mumbai, Feb 5

Listed Real Estate Investment Trusts and Infrastructure Investment Trusts in 2025 significantly outperformed traditional benchmarks, delivering a strong 19.55 per cent return on an equal weight basis, a report showed on Thursday.

This was well ahead of the Nifty50 TRI (total returns index) at 11.42 per cent and the G Sec Index at 6.81 per cent, according to an ICRA Analytics report.

Data sourced from InfRE360 indicates that public trusts have emerged as one of the most resilient and rewarding asset classes during the year.

According to the report, REITs led the segment with an exceptional 29.68 per cent return, supported by robust leasing and stable yields, while Power InvITs posted a healthy 20.22 per cent.

Road InvITs trailed at 6.55 per cent, reflecting asset specific and sectoral constraints. December quarter distributions are yet to be accounted for, which will further lift overall returns, said the report.

"REITs nearly doubled their returns, rising from 16.81 per cent in 2024 to 29.68 per cent in 2025, reflecting sustained leasing momentum and consistent yield profiles," said Madhubani Sengupta, Head- Knowledge Services, ICRA Analytics.

Power InvITs advanced from 9.43 per cent to 20.22 per cent, reflecting operational resilience and market conditions, whereas Road InvITs dipped from 9.49 per cent to 6.55 per cent, highlighting mixed performance trends across infrastructure linked assets and the impact of new listings, Sengupta added.

According to the report, the interest rate environment in 2025 tilted investor preference towards equity linked and yield oriented instruments, which weighed G‐Sec performance.

In contrast, trusts continued to attract strong interest, supported by steady cash flows, competitive yields, and growing demand for infrastructure and real estate backed investment options.

Performance figures for REITs, InvITs, and the broader trust category are based on an equal weight calculation across all listed entities rather than market cap weighting, said the report.

- IANS

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Reader Comments

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Priya S
REITs nearly doubling their returns is impressive! I've been investing in a couple of REITs for the past two years for the regular dividend income. It's good to see the capital appreciation is also strong. More awareness is needed so retail investors can move beyond just mutual funds and FDs.
R
Rohit P
The report is encouraging, but a word of caution for new investors. The "equal weight" calculation mentioned is key. It doesn't mean every REIT/InvIT gave 19.55%. Look at Road InvITs - only 6.55%. Do your own research on the underlying assets before jumping in. Don't chase past returns blindly.
M
Michael C
As an NRI looking to invest in India, this is very interesting. The yields and growth potential seem attractive compared to many developed markets. Are there any specific tax implications for NRIs investing in these instruments that one should be aware of?
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Shreya B
This performance is a direct result of India's infrastructure push and the office space boom in cities like Bangalore and Hyderabad. When the underlying assets are strong, the trusts perform. Hope SEBI keeps regulations tight to protect small investors. More power InvITs please! ⚡
K
Karthik V
While the headline numbers are great, I wish the article had more data on liquidity. It's one thing to have paper returns, but can you exit a large position easily? That's still a concern with some of these newer listed trusts compared to the Nifty.

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