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India’s REIT and InvIT Market Eyes ₹11.6 Lakh Crore
A report says India’s REIT and InvIT investments could receive much more money by 2030.
REITs and InvITs let people invest in income-producing property and infrastructure assets.
The total possible new investment is estimated at ₹11.6 lakh crore.
Mutual funds are expected to provide the largest share.
Insurance companies and pension funds could also invest large amounts.
These investors often look for steady, long-term returns.
The report says institutions are currently using only a small part of the limits allowed for these investments.
New rules, exchange-traded funds and global index inclusion could make it easier for more investors to participate.
The report says this could help India develop a deeper market for these assets.
A report estimates India’s REIT and InvIT market could attract ₹11.6 lakh crore in fresh capital by 2030.
Mutual funds could provide ₹4.5 lakh crore, insurers ₹3.2 lakh crore and pension funds ₹2.2 lakh crore.
Retail and HNI investors may contribute ₹1.2 lakh crore, while foreign investors and corporate treasuries could add ₹30,000 crore and ₹20,000 crore.
Domestic long-duration institutions currently use about 7.5% of their regulatory limits for REITs and InvITs; full utilisation could redirect nearly ₹7 lakh crore.
Potential catalysts include expanded EPFO access, higher insurance allocations, REIT/InvIT ETFs and inclusion in global indexes.
- Who
- Mutual funds, insurers, pension funds, retail and HNI investors, foreign investors and corporate treasuries are identified as potential investors.
- What
- A report estimates that India’s REIT and InvIT market could unlock ₹11.6 lakh crore of fresh capital by 2030.
- Where
- India.
- When
- By 2030.
- Why
- Greater use of regulatory investment limits, along with possible regulatory changes, ETFs and global index inclusion, could increase participation in REITs and InvITs.
Key facts
- Estimated fresh capital by 2030
- ₹11.6 lakh crore
- Largest potential investor group
- Mutual funds, at around ₹4.5 lakh crore
- Institutional limit utilisation
- Domestic long-duration institutional investors currently use about 7.5% of available regulatory limits
- Potential from full limit utilisation
- Nearly ₹7 lakh crore, equivalent to about 2.6 times the current free-float market capitalisation of Indian REITs and InvITs
- Potential EPFO catalyst
- A 2% additional allocation could channel more than ₹60,000 crore
- Potential insurance catalyst
- A 1% increase in allocation could bring in more than ₹60,000 crore
- Potential global index impact
- A 2% global index weight could attract more than ₹1 lakh crore
Quotes
Report authors
Authors of the report assessing India’s REIT and InvIT investment opportunity
“A deep and diverse patient long-duration capital pool stands ready to fuel the next phase of growth for REITs & InvITs in India”
businesstoday.in
Sources
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