Latest news with #REITs
News18
2 hours ago
- Business
- News18
InvITs, REITs AUM at USD 94 bn in FY25, more than double from FY20: Knight Frank
Agency: New Delhi, Aug 19 (PTI) Total assets under management of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) have grown to nearly USD 94 billion in the last fiscal year from USD 42.1 billion in 2019-20, according to Knight Frank. In its report released on Tuesday, real estate consultant Knight Frank India said there are five REITs and 17 InvITs listed on the stock exchanges. The total Assets Under Management (AUM) of InvITs in India have reached USD 73.3 billion in the 2024-25 fiscal year, while the AUM of REITs touched USD 20.6 billion. 'Combined AUM of REITs and InvITS have grown to USD 93.9 billion in FY25 from USD 42.1 billion in FY20," the report said. The combined market capitalisation stood at USD 33.2 billion as on July 31, 2025. The consultant said InvITs are set to play an increasingly important role in financing the country's infrastructure ambitions. It projected that the AUM of InvIT has the potential to reach USD 258 billion by 2030. This growth is expected to be driven by higher allocations from institutional investors, increased participation of domestic pension and insurance funds, expanded foreign investment, and rising awareness among retail investors, it added. REITs and InvITs are investment vehicles that allow investors to invest in real estate and infrastructure assets, respectively, without owning the physical property. PTI MJH TRB TRB (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: August 19, 2025, 16:15 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy. Loading comments...
Calgary Herald
2 hours ago
- Business
- Calgary Herald
REITs get criticized for being part of the housing affordability problem, but it turns out they aren't
Most of Canada's purpose-built rental housing was constructed before the 1990s, and maintaining this aging stock has long been a challenge for landlords. Article content That's one reason why real estate investment trusts (REITs) have stepped in over the past two decades, injecting capital to upgrade buildings and units and, in the process, improving the quality of life for many tenants. Article content Article content For example, University of Waterloo professor Martine August has said financial firms, which include REITs, raise rents to increase investor returns, making housing systematically less affordable. Article content But new research from Canada Mortgage and Housing Corp. (CMHC) tells a different story. In two studies covering the country's three most expensive rental markets, Toronto, Vancouver and Montreal, it found no evidence that REITs charge higher rents than other landlords for comparable units. Article content Just as important, the REITs' share of the purpose-built rental stock is too small to give them market power to raise rents across the board. They must compete in the open market, charging what tenants are willing and able to pay. Article content Article content In Toronto and Vancouver, CMHC economist Wahid Abdallah used building-level rental data, ownership records and neighbourhood characteristics to compare REIT-owned properties with similar ones owned by non-REITs. After controlling for location and amenities, key factors in rent levels, he found there was no statistically significant difference in rents. Article content Article content REITs own roughly 10 per cent of the rental stock in each of those cities, far too little to set market-wide rent levels. Their holdings are often concentrated in amenity-rich, gentrifying neighbourhoods, which may fuel perceptions of displacement. But gentrification, while controversial, is not inherently negative.
Economic Times
2 hours ago
- Business
- Economic Times
India's InvIT market to surge 3.5x to USD 258 billion by 2030: Knight Frank study
India's InvITs are poised for rapid growth, with assets under management projected to rise from USD 73.3 billion in FY25 to nearly USD 258 billion by 2030, driven by infrastructure push, policy support, and private capital participation. Tired of too many ads? Remove Ads InvITs Outpacing REITs in India Driving Forces Behind Growth Tired of too many ads? Remove Ads Untapped Sectoral Potential Strategic Priorities for the Next Phase Tired of too many ads? Remove Ads Global Positioning India's Infrastructure Investment Trusts (InvITs) are set for an unprecedented growth phase, with their total assets under management (AUM) projected to rise 3.5 times from USD 73.3 billion in FY25 to nearly USD 258 billion by 2030, according to Knight Frank India's latest report highlights India's emergence as a global infrastructure investment hub, ranking fourth in Asia for combined Real Estate Investment Trust (REIT) and InvIT market capitalisation, at USD 33.2 billion as of July five listed REITs and 17 InvITs, India has rapidly scaled since its market inception in 2014, backed by robust infrastructure spending and policy total AUM of REITs and InvITs combined has more than doubled to USD 93.9 billion in FY25 from USD 42.1 billion in FY20. InvITs dominate with nearly 3.5x higher AUM than REITs, underscoring their importance in financing large-scale infrastructure Baijal, Chairman and Managing Director, Knight Frank India, said: 'India's InvIT platform is at the threshold of a transformative growth phase. From an AUM base of USD 73 billion today, we are set to scale to USD 250–265 billion by 2030. InvITs will not only bridge critical infrastructure financing gaps but also open new pathways for domestic and global capital to participate in India's growth story.'Infrastructure Push: Central government spending on core infrastructure rose 6.2x in a decade to USD 75 billion in FY25, with investments now accounting for 2% of Capital Participation: InvITs enable capital recycling by channeling institutional and retail funds into brownfield operational Initiatives: The National Monetisation Pipeline (NMP) has mobilised INR 6 trillion till FY25, with NMP 2.0 targeting INR 10 trillion by 2030, creating fresh opportunities for InvIT-backed report identifies roads, renewable energy, telecom, logistics, and gas pipelines as high-potential segments. For example:Only 21% of operating NHAI toll assets are under InvITs currently manage just 2% of installed solar capacity, against a government target of 230 GW by towers have reached one-third penetration, with room for significant areas such as data centres, urban transport, water infrastructure, airports, and ports also offer strong opportunities for InvIT unlock the next wave of growth, Knight Frank suggests:Expanding retail investor participation through awareness campaigns and simplified exposure for pension and insurance funds, currently limited to 3–5%.Offering currency hedging tools to attract higher foreign capital InvITs into new infrastructure categories to deepen the investment Vijay, Executive Director – Government & Infrastructure Advisory, Knight Frank India, noted: 'The next chapter for India's InvIT market will be about depth and diversity. With policy stability, regulatory clarity, and risk management tools, India can position itself among the world's leading infrastructure investment destinations.'Globally, REITs and InvITs represent a USD 3 trillion market, led by the US, Germany, and Japan. India, though smaller in scale, is one of the fastest-growing markets, well-positioned to move into the top three in Asia within the next decade.
Time of India
2 hours ago
- Business
- Time of India
India's InvIT market to surge 3.5x to USD 258 billion by 2030: Knight Frank study
India's Infrastructure Investment Trusts (InvITs) are set for an unprecedented growth phase, with their total assets under management (AUM) projected to rise 3.5 times from USD 73.3 billion in FY25 to nearly USD 258 billion by 2030, according to Knight Frank India's latest study. The report highlights India's emergence as a global infrastructure investment hub, ranking fourth in Asia for combined Real Estate Investment Trust (REIT) and InvIT market capitalisation, at USD 33.2 billion as of July 2025. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like When the Camera Clicked at the Worst Possible Time Read More Undo With five listed REITs and 17 InvITs, India has rapidly scaled since its market inception in 2014, backed by robust infrastructure spending and policy support. InvITs Outpacing REITs in India The total AUM of REITs and InvITs combined has more than doubled to USD 93.9 billion in FY25 from USD 42.1 billion in FY20. InvITs dominate with nearly 3.5x higher AUM than REITs, underscoring their importance in financing large-scale infrastructure projects. Shishir Baijal, Chairman and Managing Director, Knight Frank India, said: 'India's InvIT platform is at the threshold of a transformative growth phase. From an AUM base of USD 73 billion today, we are set to scale to USD 250–265 billion by 2030. InvITs will not only bridge critical infrastructure financing gaps but also open new pathways for domestic and global capital to participate in India's growth story.' Driving Forces Behind Growth Infrastructure Push: Central government spending on core infrastructure rose 6.2x in a decade to USD 75 billion in FY25, with investments now accounting for 2% of GDP. Live Events Private Capital Participation: InvITs enable capital recycling by channeling institutional and retail funds into brownfield operational assets. Policy Initiatives: The National Monetisation Pipeline (NMP) has mobilised INR 6 trillion till FY25, with NMP 2.0 targeting INR 10 trillion by 2030, creating fresh opportunities for InvIT-backed projects. Untapped Sectoral Potential The report identifies roads, renewable energy, telecom, logistics, and gas pipelines as high-potential segments. For example: Only 21% of operating NHAI toll assets are under InvITs. Solar InvITs currently manage just 2% of installed solar capacity, against a government target of 230 GW by 2030. Telecom towers have reached one-third penetration, with room for significant expansion. Emerging areas such as data centres, urban transport, water infrastructure, airports, and ports also offer strong opportunities for InvIT integration. Strategic Priorities for the Next Phase To unlock the next wave of growth, Knight Frank suggests: Expanding retail investor participation through awareness campaigns and simplified access. Broadening exposure for pension and insurance funds, currently limited to 3–5%. Offering currency hedging tools to attract higher foreign capital inflows. Diversifying InvITs into new infrastructure categories to deepen the investment base. Rajeev Vijay, Executive Director – Government & Infrastructure Advisory, Knight Frank India, noted: 'The next chapter for India's InvIT market will be about depth and diversity. With policy stability, regulatory clarity, and risk management tools, India can position itself among the world's leading infrastructure investment destinations.' Global Positioning Globally, REITs and InvITs represent a USD 3 trillion market, led by the US, Germany, and Japan. India, though smaller in scale, is one of the fastest-growing markets, well-positioned to move into the top three in Asia within the next decade.
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Business Standard
4 hours ago
- Business
- Business Standard
$258 bn market by 2028: InvITs are becoming India's hottest asset class
In India, there are currently five REITs and seventeen InvITs listed in the stock exchange, with a combined market capitalization of $33.2 bn. Sunainaa Chadha NEW DELHI India's Infrastructure Investment Trust (InvIT) market is projected to expand 3.5 times to $258 billion by 2030, according to a new study by Knight Frank India. The report highlights India's emergence as a global magnet for infrastructure capital, supported by government policies, growing institutional interest, and a pipeline of brownfield and greenfield projects. InvITs Outpace REITs in India As of FY 2025, the Assets Under Management (AUM) of InvITs in India stands at $73.3 billion, nearly 3.5 times higher than the $20.6 billion managed by REITs. Together, InvITs and REITs have grown their combined AUM to U$93.9 billion in FY 2025, more than double the $42.1 billion recorded in FY 2020. The central government's infrastructure spending has risen sharply, climbing from $12 billion in FY 2015 to USD 75 billion in FY 2025 — a 6.2x increase. Spending as a share of GDP has also tripled from 0.6% to 2.0%. According to Knight Frank, India's ambition of becoming a $ 7 trillion economy by 2030 will require USD 2.2 trillion in infrastructure investment. InvITs are expected to play a pivotal role by channeling domestic pension and insurance funds, foreign institutional capital, and retail investments into operational assets, unlocking much-needed capital for fresh projects. Globally, there are over 1,000 publicly listed REITs and InvITs also termed as master business trusts, boasting a combined market capitalisation of approximately USD 3 trillion (tn). In India, there are currently five REITs and seventeen InvITs listed in the stock exchange, with a combined market capitalization of $33.2 bn. "The challenge and opportunity lie in broadening participation — from pension and insurance funds to retail investors — while maintaining the transparency and governance standards that have underpinned the sector's credibility. InvITs have the potential to become the cornerstone of India's infrastructure financing ecosystem and a magnet for global infrastructure capital," said Shishir Baijal, Chairman and Managing Director, Knight Frank India. Source: Respective company reports, Knight Frank Research; Note: Estimated till FY 2025 Policy Push: NMP 2.0 The government's National Monetisation Pipeline (NMP) has been central to the sector's growth. The first phase (FY 2021–25) achieved 95% of its Rs 6 trillion target. Building on this momentum, NMP 2.0 aims to monetise INR 10 trillion worth of assets by 2030, with InvITs positioned as a key vehicle for capital mobilisation. The potential for InvIT expansion in India remains significant across multiple infrastructure sectors. In roads, InvITs are the largest segment by value, comprise only 21% of operating NHAI toll assets, leaving ample scope for monetisation. In renewable energy, despite installed solar capacity exceeding 98 GW, InvITs manage just 2% of operational assets, with the government targeting 230 GW by 2030. In logistics, only 39 mn sq ft of the 479 mn sq ft controlled by private operators is within InvIT structures. Airports, ports, and wind energy are seeing greater private participation through PPPs and concessions, yet InvIT penetration is not yet visible. Stable revenue models remain a challenge, but measures such as risk-sharing mechanisms, credit enhancement facilities, Viability Gap Funding, long-term agreements, and predictable regulation can strengthen investor confidence. "Opportunities go beyond existing assets, with capacity expansions planned in roads, renewable energy, ports, airports, power transmission, and logistics driven by economic growth, urbanisation, and industrialisation. Supported by PPP policies and the INR 10 trn monetisation target under NMP 2.0 by 2030, this creates a sizeable addressable market. Overall, the InvIT market in India could reach approximately $258 bn by 2030, scaling existing sectors and bringing underrepresented asset classes into the fold," noted the report. Global Positioning and Comparative Scale India's REIT and InvIT market ranks fourth in Asia in terms of total market capitalisation, behind Japan, Singapore, and Hong Kong. However, India's growth trajectory is among the fastest in the region, particularly in InvITs. The report identifies several strategies to unlock the next phase of InvIT growth: Expanding Retail Participation: Increasing awareness and accessibility of InvITs through targeted investor education campaigns, simplified investment processes, and inclusion in mainstream wealth management offerings. Hedging Currency Risk for Foreign Investors: Offering cost-effective currency hedging tools to mitigate forex volatility and encourage higher foreign capital inflows. Broadening Domestic Institutional Exposure: Raising exposure limits for pension and insurance funds and encouraging public sector financial institutions to participate more actively. Diversification of Sectors: Bringing new asset categories such as data centres, urban transport, and water infrastructure into the InvIT framework to broaden the investment base. "The next chapter for India's InvIT market will be about depth and diversity. Institutional investors, especially sovereign and global pension funds, have already anchored the market. The task now is to unlock larger pools of domestic long-term capital, particularly from insurance and pension funds, where current exposure is only 3–5 percent. At the same time, expanding the scope of InvIT assets to include emerging infrastructure categories will further enhance investor interest," said Rajeev Vijay, Executive Director - Government and Infrastructure Advisory, Knight Frank India. Key Sectors with Untapped Potential InvIT opportunities span across multiple asset classes, with roads, energy, and telecom infrastructure leading the way: Roads: InvITs currently manage 21% of operating NHAI toll assets, leaving significant scope for monetisation. Renewable Energy: Despite solar capacity exceeding 98 GW, InvIT penetration is just ~2%, with the government targeting 230 GW by 2030. Telecom: InvITs hold 250,000 towers (33% share), with scope to expand as India aims for 12 lakh towers by 2030.
