Investor appetite for yield-generating assets drove a sharp rise in trading volumes of publicly traded REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) over the last two years, a report by ICRA Analysts revealed. The total trading volumes of public InvITs jumped by 128.23 per cent, while public REITs witnessed a staggering 399.54 per cent surge since FY23, reflecting growing market confidence in these instruments.
In terms of traded value, public InvITs grew by 115.53 per cent in the last two years, while public REITs increased by 177.78 per cent since FY23, the report added. The volume of public InvITs traded — which stood at 2,735 lakh units in 2022-23 — has increased to 6,242 lakh units in 2024-25.
On y-o-y basis, volumes traded increased by 20.52 per cent from 5,179 lakh units in 2023-24.
The volumes of public REITs traded increased to 16,350 lakh units in FY25 compared to 3,273 lakh units in FY23 . On a year-on-year basis, it grew by 230.10 per cent from 4,953 lakh units in 2023-24.
The total number of unitholders in both these instruments combined increased by 8.23 per cent to 67.23 crore in FY25, compared to 62.12 crore in FY24. There are currently five InvITs and four REITs which are publicly traded.
The trends reflect the growing maturity of alternative investment space and its increasing appeal to both domestic and global investors.
“Market capitalisation of public REITs has grown by a healthy 10 per cent over 2023-24,” Madhubani Sengupta, Head- Knowledge Services, ICRA Analytics, said, adding that it underscores renewed institutional and retail investor appetite for commercial real estate-backed securities, supported by uptick in office demand and resilient rental yields. Public InvITs have witnessed 4 per cent rise in market capitalisation on a year-on-year basis.
“The consistent uptick points to ongoing confidence in the infrastructure financing ecosystem and growing recognition of InvITs as long-term yield instruments,” added Sengupta.
According to Sengupta, the government’s continued emphasis on infrastructure development and asset monetisation is expected to ensure a steady flow of assets for InvITs to grow. The rising presence of Global Capability Centres (GCCs) is likely to boost demand for premium Grade A office spaces, providing scope for commercial real estate assets to come under REITs.
With strong market momentum and increasing investor interest from both institutional and retail participants, ICRA Analysts expect a significant rise in IPO activity for REITs and a trend of private entities shifting to public market structures — a sign of the growing optimism and confidence in capital markets.
Published on July 8, 2025