Now Reading: REIT, InvIT market could unlock ₹11.6 lakh crore by 2030
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REIT, InvIT market could unlock ₹11.6 lakh crore by 2030
India’s REIT and InvIT market could unlock ₹11.6 lakh crore of fresh capital by 2030, according to a report. Mutual funds are the biggest potential source of incremental demand at ₹4.5 lakh crore, followed by insurers at ₹3.2 lakh crore and pension funds at ₹2.2 lakh crore. Retail and HNI investors could contribute ₹1.2 lakh crore, while foreign investors and corporate treasuries account for ₹30,000 crore and ₹20,000 crore respectively.
Domestic institutional investors currently use only about 7.5% of their regulatory limits for REITs and InvITs. Full utilisation could redirect nearly ₹7 lakh crore into the asset class. The report identifies several potential catalysts: allowing EPFO greater access to non-PSU-sponsored trusts could channel more than ₹60,000 crore, while a 1% increase in insurance allocation could bring in more than ₹60,000 crore.
REIT/InvIT ETFs and global index inclusion could broaden access further. The report estimates that a 2% allocation from current passive AUM could channel more than ₹24,000 crore, while a 2% global index weight could attract more than ₹1 lakh crore. India’s REIT and InvIT AUM has grown to nearly ₹10 lakh crore in nine years and could surpass ₹20 lakh crore by 2030.
Indian Opinion Analysis
The two reports, both from the same outlet, present nearly identical information with different emphases. One leads with the headline ₹11.6 lakh crore total opportunity, framing the story as a macro market projection. The other leads with EPFO and insurers as specific potential growth engines, foregrounding regulatory limits and institutional beneficiaries. Neither source is critical: both are sector-positive, presenting regulatory changes as catalysts rather than risks. The balanced reading is that the opportunity is large but conditional on rule changes. The tangible number to watch is whether the government allows EPFO to invest in non-PSU REITs and InvITs, which would unlock over ₹60,000 crore.
Coverage: 2 sources, 2 neutral
Sources (2): businesstoday.in (neutral report), businesstoday.in (2) (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
Updated: this story now draws on 2 sources.
