New Delhi [India], August 17 (ANI): India's Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) could expand two to three times from the existing assets under management (AUM) by 2030, supported by low penetration across several infrastructure segments, according to an Ionic Wealth chartbook.

'Market opportunity for REITs and InvITs is set to increase 2-3x from the existing AUM by 2030,' the August 2026 chartbook said.

The report estimates the current AUM of REITs at around Rs 3.2 lakh crore, covering office and retail assets. This could increase to about Rs 6.8 lakh crore by 2030, or around 2.1 times the current level.

For InvITs, covering roads and other infrastructure sectors, current AUM of about Rs 5 lakh crore could increase to around Rs 13.4 lakh crore by 2030, representing about 2.6 times the existing level.

The report highlighted under-penetration across several infrastructure segments as a key opportunity for expansion. REIT and InvIT penetration stands at 8.6 per cent for roads, 2.7 per cent for transmission lines, 2 per cent for solar capacity, 5.9 per cent for natural gas pipelines and 8.1 per cent for warehousing. Office stock penetration stands at 19 per cent.

India's listed real-asset universe has also expanded beyond offices and traditional infrastructure into newer segments.

'India's listed real asset universe now spans office parks, roads, transmission, renewables, warehousing, telecom towers, fibre and gas pipelines - making asset-class selection central to investor returns,' the chartbook said.

The report said REITs and InvITs are gaining relevance as investors look for predictable cash flows and exposure to real assets. 'As investors look for predictable cash flows in uncertain markets, REITs and InvITs are emerging as a regulated route to own India's offices, roads, power, warehouses and infrastructure,' it said.

On performance, the Ionic Wealth chartbook showed that the Nifty REITs & InvITs Total Returns Index delivered a five-year compound annual growth rate (CAGR) of 12.73 per cent as of July 31, 2026, higher than the 10.41 per cent return generated by the Nifty 50 Total Returns Index over the same period.

The Nifty Realty Total Returns Index, however, delivered a higher five-year CAGR of 18.17 per cent. The figures include dividends, according to the report.

REITs and InvITs also recorded lower volatility. Their five-year standard deviation stood at 8.89 per cent, compared with 13.82 per cent for the Nifty 50 and 28.07 per cent for the Nifty Realty index.

'REITs and InvITs provide a middle ground between steady income and market risk,' the report said.

The chartbook added that different REIT and InvIT sectors carry different risk-return characteristics, making the underlying asset important while assessing investments.

'Each sector demonstrates different nuances of risks and returns, inflation hedge and terminal value taxonomy. Hence, investors need to evaluate each REIT and InvIT basis the underlying metrics of the specific asset class,' it said. (ANI)