SEBI Chairman Calls For Faster Growth Of REIT And InvIT Market

SEBI Chairman, while speaking at the first edition of the National Conclave on REITs & InvITs 2025 by Bharat InvITs Association and Indian REITs Association, said that India must accelerate asset monetisation, deepen participation and rapidly scale REIT and InvIT pipelines to meet its infrastructure ambitions. Held under the theme “Harnessing Capital. Accelerating Growth. Building India”, the conclave brought together policymakers, global and domestic investors, market intermediaries and industry leaders to chart India’s roadmap for listed infrastructure and real-estate vehicles.

Delivering the keynote, Shri Tuhin Kanta Pandey, Chairman, SEBI, said REITs and InvITs are “a central bridge between infrastructure and capital markets.” He noted, “India’s infrastructure journey must now be driven by the dynamism of markets. Instruments like REITs and InvITs connect everyday household savings with long-term national assets. Capital markets diversify risk, enforce transparency and bring governance discipline, making them uniquely suited for long-gestation infrastructure.”

He emphasised India’s rising capital needs, stating, “Without sustained financing, our aspiration to become a $5 trillion economy will be constrained.” He added that over the next two decades, sectors including transport, energy, urban services, telecom and aviation will require massive investment, with “over ₹700 trillion needed by 2047.” He underlined that “the next phase of India’s infrastructure story must be driven by markets and by instruments that democratise access to high-value assets.”

Highlighting progress, he said, “We now have around five listed REITs and twenty-four listed InvITs spanning roads, power transmission, renewables, telecom, warehousing and commercial real estate. As of October 2025, the combined AUM of REITs, InvITs and SM REITs stands at around ₹9.25 trillion, but the sector still has significant room to grow in depth, scale and diversification.” He added that REITs and InvITs “democratise access to high-value assets and deliver real cash returns to unitholders.”

Calling for urgent expansion, he said retail participation remains far too low: “Awareness is around 10%, with penetration less than 1%. This must change.” He outlined SEBI’s recent measures including REIT reclassification as equity, reduced minimum investment thresholds and the launch of SM REITs. He stressed that “index inclusion of REITs and InvITs, expanded mutual-fund access and lower investment thresholds are important levers to boost liquidity and visibility. These measures will broaden participation and strengthen the pipeline of monetised assets.”

He added that SEBI is working closely with the Ministry of Finance and state governments to accelerate asset monetisation, and with IRDAI, PFRDA and EPFO to enable greater institutional participation. He welcomed recent developments including the Maharashtra Government’s plan to establish a state-level InvIT and NHAI’s decision to launch a public InvIT for retail investors.

Mr. Alok Agarwal, Chairperson, Indian REITs Association, highlighted the remarkable scale achieved by India’s REIT platform, stating, “The Indian REIT ecosystem has moved from concept to scale with remarkable speed, and today stands as one of the most transparent and trusted avenues for long-term investment. With over 176 million square feet of Grade A assets and a growing base of more than 3.3 lakh unitholders, REITs are engines of urban development, job creation and capital formation.”

Mr. N.S. Venkatesh, CEO, Bharat InvITs Association, added that the industry is poised for exponential expansion, saying, “InvITs have evolved from a niche investment product into one of the most dynamic instruments driving India’s infrastructure financing landscape. With enabling government policies, the convergence of private and public capital is set to accelerate, and the InvIT industry is expected to grow three-fold from the current AUM of ₹7 lakh crore to ₹21 lakh crore by 2030, paving the way for democratising retail financial savings.”

The Conclave also saw the release of sector-building initiatives, including the InvIT Report, the Data Benchmarking Institute Platform, the REIT Information Booklet and a commemorative special cover. The launch of “REIT Right Hain”, an investor awareness campaign.