Key Points

Rising investor interest amid growing confidence in yield-generating assets is leading to a good growth in volumes of REITs and InvITs publicly traded in the last two years.

REITs and InvITs are investment vehicles that allow investors, both individual and institutional, to participate in the real estate and infrastructure sectors, respectively, without directly owning properties or infrastructure assets.

“Market capitalisation of public REITs has grown by a healthy 10 per cent over FY2024. This remarkable growth underscores renewed institutional and retail investor appetite for commercial real estate-backed securities, supported by uptick in office demand and resilient rental yields,” said Madhubani Sengupta, Head-Knowledge Services, ICRA Analytics.

In terms of traded value, public InvITs grew by 115.53 per cent in the last two years while public REITs increased by 177.78 per cent since FY2023.

The volumes of public InvITs traded, which stood at 2,735 lakh units in FY23, has increased to 6,242 lakh units in FY25.

On a year-on-year basis, volumes traded increased by 20.52 per cent from 5,179 lakh units in FY24. The volumes of public REITs traded increased from a mere 3,273 lakh units in FY23 to 16,350 lakh units in FY25. On a year-on-year basis, it grew by 230.10 per cent from 4,953 lakh units in FY24, the report mentioned.

The public InvITs’ traded value stood at Rs 6,121 crore in FY25 as against Rs 2,840 crore in FY23; while REITs was at Rs 31,206 crore in FY25 as compared with Rs 11,234 crore in FY23.

On a year-on-year basis, InvITs’ traded value grew by 14.41 per cent from Rs 5,350 crore in FY24 while that of REITs increased by 157.47 per cent from Rs 12,120 crore in FY24.

The total number of unitholders in both these instruments put together increased by 8.23 per cent at 67.23 crore in FY25, as against 62.12 crore in FY24. There are currently five InvITs and four REITs which are publicly traded, said the report.

- IANS