New Delhi [India], July 7 : Rising investor interest amid growing confidence in yield-generating assets is leading to good growth in volumes of publicly traded REITs and InvITs over the last two years, ICRA Analytics said in a statement Monday.
The total volumes of public InvITs traded increased by 128.23 per cent in the last two years, while that of public REITs surged by a whopping 399.54 per cent since 2022-23, ICRA Analytics said, a wholly owned subsidiary of ICRA Ltd.
REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) are investment vehicles that allow investors, both individual and institutional, to participate in the real estate and infrastructure sectors, respectively, without directly owning properties or infrastructure assets.
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 2022-23, said the report.
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 a year-on-year basis, volumes traded increased by 20.52 per cent from 5,179 lakh units in 2023-24.
The volumes of public REITs traded increased from a mere 3,273 lakh units in 2022-23 to 16,350 lakh units in 2024-25. 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 2024-25, compared to 62.12 crore in 2023-24. There are currently five InvITs and four REITs which are publicly traded.
"Market capitalisation of public REITs has grown by a healthy 10 per cent over 2023-24. This remarkable growth 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," said Madhubani Sengupta, Head- Knowledge Services, ICRA Analytics.
"The consistent uptick points to ongoing confidence in the infrastructure financing ecosystem and growing recognition of InvITs as long-term yield instruments," added Sengupta.
The year-on-year growth in traded volume, traded value, and market capitalisation for both REITs and InvITs highlights robust market participation and a favourable investment climate.
"These trends reflect the growing maturity of India's alternative investment space and its increasing appeal to both domestic and global investors," ICRA Analytics added.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor