India REITs, InvITs AUM to Double to ₹20 Lakh Crore
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- Avendus Capital projected in its June 2026 report that India's 32 listed REITs and InvITs will double combined AUM from ₹10 lakh crore to ₹20 lakh crore over the next five years, calling it a "huge growth runway."
- Sebi reclassified REITs as equity instruments from January 1, 2026 and expanded eligible mutual fund categories for InvITs in February 2026, with mutual fund industry exposure to both vehicles rising significantly since.
- Sebi also approved REIT inclusion in equity indices from July 1, 2026, a move the source says will pull more capital into REITs through ETFs and index funds.
- Crisil Ratings forecast in June 2026 that leasable area of commercial office REITs will grow 25-30% by fiscal 2028, adding 40-45 million square feet to reach 190-195 million square feet.
- IndiGrid InvIT, listed in June 2017 at ₹100/unit, has delivered 183% total returns (13% annualised) and distributed ₹117 in DPU through March 31, 2026, with a current yield of ~9% on its ₹177 unit price.
- The Nifty REITs & InvITs Index returned 19.24% over the past year and 12.79% CAGR over five years as of June 30, 2026.
- New InvIT listings are expected in renewable energy, telecom infrastructure, and gas pipelines, while new REITs are expected in warehousing, data centres, and hospitality — with ₹2.22 lakh crore in bids already invited for power transmission and battery energy storage.
Why it matters: Sebi's January 2026 equity reclassification and July 2026 index inclusion are the regulatory unlock retail investors have waited for, giving them a mainstream path into commercial real estate, highways, and power transmission assets. IndiGrid's 13% annualised track record since 2017 shows the yield-plus-appreciation model can compound, but the headline ₹20 lakh crore AUM projection hinges on warehousing, data centre, and renewable InvIT listings actually coming to market.
