Introduction to REITs and InvITs
Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have emerged as key investment vehicles in India, offering a unique opportunity for investors to participate in the country’s growing infrastructure sector. In a recent address at the National Conclave on REITs & InvITS, SEBI Chairman Tuhin Kanta Pandey emphasized the crucial role that REITs and InvITs will play in driving India’s next infrastructure cycle.
India’s Infrastructure Investment Needs
According to Pandey, India will require massive infrastructure investments over the next two decades to sustain its growth momentum. The country’s infrastructure sector has traditionally been driven by public finance, Public-Private Partnerships (PPPs), and bank credit. However, the next phase of infrastructure expansion must be driven by market-linked avenues such as REITs and InvITs.
Current State of REITs and InvITs in India
Currently, there are 24 InvITs and 5 REITs listed in India, offering real cash returns to unit holders. Despite their potential, retail participation in these investment vehicles remains low, with only 10% awareness among investors, as per a survey conducted by SEBI. To boost participation, SEBI is actively engaging with industry bodies and working with regulatory bodies such as IRDAI and EPFO to encourage investments.
Improving Ease of Doing Business
Pandey also highlighted SEBI’s efforts to improve ease of doing business in the REITs and InvITs space. Based on industry feedback, the regulator is exploring the possibility of allowing private REITs to participate in greenfield projects. This move is expected to increase the attractiveness of REITs and InvITs to investors and contribute to the growth of the infrastructure sector.
Penetration of REITs and InvITs in India
The penetration of REITs and InvITs in India stands at just 12%, indicating significant room for growth. As more players enter the market, liquidity is expected to improve, making these investment vehicles more attractive to investors. REITs vs InvITs: Which is the better investment option?
Success of REITs and InvITs in India
Despite the challenges, REITs and InvITs have been successful in India, with assets under management worth an estimated Rs 8.7 lakh crore as of the end of the 2025 financial year. In the last five years alone, these investment vehicles have mobilized nearly Rs 1.5 trillion. Investing in REITs can provide a steady stream of income and diversification benefits to investors.
Way Forward
To achieve the desired level of infrastructure investment, it is essential to increase awareness and participation in REITs and InvITs among retail investors. SEBI’s efforts to improve ease of doing business and encourage investments from regulatory bodies are steps in the right direction. As the Indian economy continues to grow, the role of REITs and InvITs in driving the next infrastructure cycle will become increasingly important. Indian economy news and updates can be found on our website.
Conclusion
In conclusion, REITs and InvITs are poised to play a crucial role in driving India’s next infrastructure cycle. With SEBI’s efforts to improve ease of doing business and increase awareness among retail investors, these investment vehicles are expected to become more attractive to investors. As the Indian economy continues to grow, the importance of REITs and InvITs will only continue to increase. Stock market news India and updates can be found on our website.