With more than a decade, the Indian REIT and invitation landscape are constantly developed and are ready for further growth. As of March 2025, there are 4 listed REITs and 26 SEBI-registered invitations in India, of which 4 are traded in public.
Most RITs and invitations are supported by global and large domestic sponsors and have a total wealth of around 7.5-8.0 lakh crore under management (AUM).
Indian RIITs include high quality assets and various tenant portfolio, including leading domestic and global companies. This solid foundation offers competitive yields, tax benefits, liquidity and low capital requirements compared to a single real estate property. However, in India, RITS accounts for 10% of the country’s total listed real estate value, covering more than 90% of more than 126 million square feet found in developed markets like USA and UK. This distance represents significant growth opportunities and highlights the need for further promotion of RIT and invitations, along with the development of a regulatory structure to support their expansion.
Nevertheless, India’s RIL market is in its early stages compared to its global counterparts, it has abundant potential, encouraging high quality real estate wealth. It is noteworthy that, more than 1 million square feet of Million 1 Million Fees and retail space completed in Million 1 million square feet in India is suitable for RIT inclusion, which strengthens the case for the development of the field. In addition, the introduction of small and medium REITs (SMET) is expected to bring 300-350 million square feet of office office space in the stock exchange. Meanwhile, the invitation market for Indian roads is likely to increase the AUM of the main sector investments and the National Highway Authority India (NHAI) National Monetization Pipeline, by March 2026, by March 2026.
Reits and Invitations: Getting traction as a hybrid investment options
Reits and invitations represent a unique property class that combines the characteristics of both fixed-income equipment and equity. These investment vehicles provide a balanced opportunity to obtain stable returns from the real estate and structural property that generates income through dividend distributions, while also benefiting from the price of the unit. This hybrid model makes them a reliable investment option even in a state of unstable market.
Investing in REITs and invitations, investors can diversify their portfolio beyond traditional asset classes such as equity, bonds and gold. These investments usually show less correlation with stock market activities, making them a good hedge during the market conditions. Moreover, as the expansion of real estate and infrastructure of India continues, the demand for high quality assets is expected to increase, supporting long -term pricing appreciation.
According to data released by the Indian REITS Association, the Indian RIT has given an annual tax return for the last 5 years ~ 10.5%, which is significantly higher than traditional devices such as fixed deposits and debt mutual funds. In addition, Indian RIITs and invitations are currently trading their net asset value (NAV) at a discount, presenting an attractive entry point, and indicating an untapped market potential. This growing validity is clear in the growth of Reit Unetholders by more than 260,000 from the end of 2019 to the end of 4,000 to 2024.
Increase in front-to-India RIT and invite ecosystems for more investors-friendly future
In the last one year, the Indian RET has given a more stable return of 9.9% through dividend and capital appreciation, which is higher than the Nifty, which has a compensation of 7.7% over the same period. With this unique hybrid nature and attractive returns, reits and invitations should be recognized as a separate investment category.
One of the crucial forward steps to promote their growth is one of the major benchmark indicators such as the Sensex and the Nifty in both the current regional or subject indicators, in addition to the equity and debt. This move will significantly increase the market’s depth, liquidity and participation of investors, while inactive foreign capital flow in Indian markets will also attract. The domestic consumer had a similar trend in the Internet sector, with Zomato becoming India’s first new-year tech stock to add to the BSE Sensex.
In well -established markets such as the United States and Singapore, REITS has a leading position in benchmark indicators, reflecting their reliability as a stable and income generating wealth class. For example, in Singapore, the third largest by the Straits Times Index (STI) by the RIIT sector weight, only banks and industrial dysfunction stocks. These inclusion shows the market confidence in RITS capacity to deliver constant income and capital appreciation. Globally, Indian RIITs are already included in leading indices such as FTSE, MSCI and S&P, indicating their growing relevance in the landscape of international investment.
While listing on Indian B Ours RS provides a liquidity, while unifying REIT and invitation to India’s Sensex and Nifty indicators in both equity and Debt, this will accelerate the property and increase acceptance between local and foreign institutional and retail investors. These strategic moves will strengthen India’s position as a mature, dynamic and attractive investment place for real estate and structural property.
(Now you can subscribe to our Etmarkets WhatsApp channel)
