NEW DELHI — Avendus Capital projects India's REIT and InvIT sector AUM will exceed Rs 20 trillion by 2030. The firm's report, 'Trust the Structure: REITs, InvITs and the Real Return Imperative', estimates Rs 11.6 trillion in additional investment could be attracted by then.

REITs account for about Rs 2.97 trillion of assets and InvITs make up approximately Rs 7.13 trillion. Avendus estimates an annual primary market opportunity exceeding Rs 1 trillion. Growth drivers include infrastructure expansion, household savings financialization, regulatory reforms, and institutional investor participation.

"In just 9 years, India's REIT and InvIT market has scaled to nearly Rs 10 Tn of assets under management and approximately Rs 5 Tn of market capitalisation," Avendus said. The firm projects commercial office REIT AUM will increase from Rs 2.9 trillion in 2026 to Rs 6 trillion by 2030. Road InvIT AUM is projected to expand from Rs 3.2 trillion to Rs 8.8 trillion by 2030.

Sector market capitalization represents approximately 1.5 percent of GDP, compared to 5 percent to 12 percent in developed markets. Domestic institutional capital has utilized 7.5 percent of available regulatory limits. "Full utilisation could redirect approximately Rs 7 trillion worth of additional flows, which is 2.6 times the current free float market cap of all REITs and InvITs."

Avendus noted India needs infrastructure at a scale government budgets alone cannot fund, citing InvITs' role in capital recycling. The National Infrastructure Pipeline 2.0 anticipates Rs 17 trillion in projects between fiscal 2025 and 2028.

No independent assessment of Avendus Capital’s claims was available.