The combined Assets Under Management (AUM) of India’s Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) are on track to double to approximately ₹20 trillion by 2030-31, according to credit rating agency ICRA.
Growing at an anticipated Compound Annual Growth Rate (CAGR) of around 15%, this capital pool will expand from its 2025-26 base of roughly ₹10 trillion. The projected surge highlights how central these yield-generating vehicles have become in unlocking capital from operational infrastructure assets and redeploying it into fresh development projects.
INVITS & REITS AUM GROWTH PROJECTIONS
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| Segment | FY2026 (Actual) | FY2031 (Projected) | Growth Drivers |
+--------------------+-----------------------+-----------------------+----------------+
| InvITs AUM | ~₹7.0 Trillion | ~₹13.5 Trillion | Roads, Telecom |
| REITs AUM | ~₹3.1 Trillion | ~₹6.5 Trillion | Office, Retail |
+--------------------+-----------------------+-----------------------+----------------+
| COMBINED AUM | ~₹10.0 Trillion | ~₹20.0 Trillion | ~15% CAGR |
+--------------------+-----------------------+-----------------------+----------------+
Historical Momentum & Sector Breakdown
This upcoming growth cycle builds on five years of market adoption. Between March 2021 and March 2026, InvIT AUM climbed from ₹3.2 trillion to ₹7.0 trillion (a 17% CAGR), while REIT AUM surged from ₹0.7 trillion to ₹3.1 trillion (a 33% CAGR).
As of FY26, the ecosystem comprises 25 registered InvITs and six publicly listed REITs:
- InvIT Landscape: Roads emerged as the fastest-growing asset category, expanding its share of InvIT AUM from 16% in March 2021 to 43% by March 2026—just behind telecom assets at 44%.
- REIT Landscape: Commercial office spaces continue to serve as the core anchor, with platforms expanding into retail malls, warehousing, and logistics parks.
Anupama Reddy, Vice President and Group Head of Corporate Ratings at ICRA, provided further context on the shift:
“The InvIT and REIT ecosystem has reached a scale that can support meaningful growth across both traditional and emerging asset classes. ICRA expects InvIT AUM to increase to around Rs. 13.5 trillion and REIT AUM to around Rs. 6.5 trillion by 2030-31. Continued monetisation of infrastructure assets, along with the emergence of new asset classes, should create further growth opportunities. At the same time, greater participation from domestic institutional investors and recent regulatory measures could improve funding flexibility for these assets.”
Regulatory Frameworks Unlock Domestic Capital
A decade of policy evolution has deepened market access and broadened funding channels for trust platforms. Key regulatory milestones strengthening future capital access include:
- Equity Reclassification: Mutual funds were permitted to classify REITs as equity assets starting January 2026, lowering investment barriers.
- Direct Bank Lending: Scheduled commercial banks have been approved to lend directly at the REIT level starting October 1, 2026, opening up longer-tenure, cost-effective debt options.
- Institutional Access: Expanding the definition of strategic investors to encompass all Qualified Institutional Buyers (QIBs) has broadened access to long-term domestic capital.
Mutual fund exposure to these trust vehicles surged 56% year-on-year, crossing ₹310 billion as of June 2026. This influx is backed by solid historical returns, with seasoned issuances delivering a median Extended Internal Rate of Return (XIRR) of roughly 14%.
FUNDRAISING ACCELERATION (SINCE 2019-20)
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| Total Mobilised: ~₹200 Billion across Public Issues, Placements, Rights Issues |
| [========================== InvITs (~80%) ==========================][ REITs ~20% ]|
| |
| * Nearly 50% of total capital was raised during the last three years alone. |
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Key Monitorables for Sustained Growth
While long-term growth prospects remain positive, ICRA highlights several financial factors that require prudent management as asset volumes expand:
- Debt Structuring: Managing refinancing risks and restrictive covenants established at underlying Special Purpose Vehicle (SPV) levels.
- Cash Flow Management: Mitigating valuation risks, bunching of debt maturities, and potential tax regulation changes.
- Liquidity Buffers: Maintaining cash-flow pooling mechanisms to safeguard credit profiles across scaling platforms.
