REITs and InvITs: Who should invest and why these assets are gaining ground

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India’s listed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) emerged as top performers in 2025, delivering a combined equal-weight return of 19.55 percent, outperforming the Nifty50 Total Return Index’s 11.42 percent and the G-Sec Index’s 6.81 percent, according to ICRA Analytics data based on InfRE360 and NSE as of February 2, 2026.

These hybrid instruments, which blend stable income streams with capital appreciation potential, have attracted growing investor interest amid heightened market volatility. Let us understand what REITs and InvITs are, how they differ in terms of underlying assets and cash-flow visibility, why they are increasingly viewed as alternatives to traditional equity and debt investments.

According to ICRA Analytics data REITs nearly doubled their returns, rising from 16.81 percent in 2024 to 29.68 percent in 2025, reflecting sustained leasing momentum and consistent yield profiles. Power InvITs advanced from 9.43 percent to 20.22 percent, reflecting operational resilience and market conditions, whereas Road InvITs dipped from 9.49 percent to 6.55 percent, highlighting mixed performance trends across infrastructure linked assets and the impact of new listings.

  • REITs and InvITs returned 19.55%, outperforming Nifty50 and G-Sec in 2025.
  • REITs returns nearly doubled to 29.68%; Power InvITs rose to 20.22%
  • REITs and InvITs provide stable income, capital growth, and tax benefits.

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