India’s REIT, InvIT market could unlock ₹11.6 lakh crore of fresh capital by 2030: Report

India’s REIT and InvIT market could attract an additional ₹11.6 lakh crore of investment by 2030, as mutual funds, insurers, pension funds, foreign investors, retail investors and corporate treasuries increase allocations to listed real assets, according to a report by Avendus.

The report, Trust the Structure: REITs, InvITs and the Real Return, estimates that the additional capital pool could support the next phase of growth in India’s business-trust ecosystem. The authors also estimate that REITs and InvITs could cross ₹20 lakh crore in AUM by 2030, with an annual primary-market opportunity of more than ₹1 lakh crore.

Mutual funds and insurers account for the largest pools

Mutual funds represent the biggest potential source of incremental demand at around ₹4.5 lakh crore, followed by insurers at ₹3.2 lakh crore and pension funds at ₹2.2 lakh crore. Retail and HNI investors could contribute another ₹1.2 lakh crore, while foreign investors and corporate treasuries account for ₹30,000 crore and ₹20,000 crore, respectively.

The opportunity is particularly significant because domestic long-duration institutional investors are currently using only about 7.5% of their available regulatory limits for REITs and InvITs. Full utilisation of these limits could redirect nearly ₹7 lakh crore into the asset class, equivalent to about 2.6 times the current free-float market capitalisation of Indian REITs and InvITs.

Pension funds are expected to contribute around ₹2.2 lakh crore of incremental investment by 2030. The report describes them as a natural long-duration investor base because of the relatively low volatility and stable, annuity-like cash flows associated with REITs and InvITs.

Regulatory changes could unlock more capital

The report identifies several potential catalysts. Allowing EPFO greater access to non-PSU-sponsored trusts could help channel more than ₹60,000 crore through just a 2% additional allocation. Similarly, a 1% increase in insurance allocation could bring in more than ₹60,000 crore.

REIT/InvIT ETFs and global index inclusion could broaden access further. The report estimates that a 2% allocation from current passive AUM could channel more than ₹24,000 crore, while a 2% global index weight could attract more than ₹1 lakh crore.

The authors argue that the opportunity extends beyond capital flows. “A deep and diverse patient long-duration capital pool stands ready to fuel the next phase of growth for REITs & InvITs in India,” they said, adding that the opportunity lies in “unlocking participation and scaling allocations.”

The report says India’s REIT and InvIT ecosystem is still early in its evolution, but stronger regulation, rising domestic savings and a growing pool of monetisable real assets are creating the foundations for a deeper institutional market.