India REIT/InvIT Market Could Attract Rs 11.6 Lakh Crore by 2030: Avendus

The report identified several growth drivers: infrastructure expansion, rising financialisation of household savings, regulatory reforms, and greater institutional participation. One striking data point: India's domestic long-duration institutional capital pool has used only about 7.5% of the available regulatory limits for REIT and InvIT investments. Full utilisation would redirect roughly Rs 7 lakh crore in additional flows, the report estimated – about 2.6 times the current free float market cap of all REITs and InvITs.

The government's infrastructure push also acts as a catalyst. The National Infrastructure Pipeline 2.0 envisages around Rs 17 lakh crore of projects between FY25 and FY28. Avendus noted that government budgets alone cannot fund that scale, making InvITs critical for capital recycling.

"India needs infrastructure at a scale that government budgets alone cannot fund; the role of InvITs is critical in the proper recycling and allocation of capital," the report said.

Looking at segment-level projections: commercial office REITs could grow from Rs 2.9 lakh crore AUM in 2026 to Rs 6 lakh crore by 2030, while road InvITs could expand from Rs 3.2 lakh crore to Rs 8.8 lakh crore over the same period.

For investors tracking Indian real assets, the key question is whether the regulatory and institutional infrastructure can absorb that capital quickly enough. The 7.5% utilisation figure suggests the bottleneck is on the demand side, not the supply side – but that could shift as domestic pension and insurance funds rebalance allocations. The Avendus report frames India as still in the early stages of building a deep, institutionalised listed real assets market.

"Our belief is that India is still in the early stages of building a deep and institutionalised listed real assets market. As the ecosystem matures, the role of REITs and InvITs within strategic asset allocation is likely to become increasingly significant," the report said.