REITs and InvITs outperform traditional benchmark indices in 2025
- IBEF
- February 4, 2026
According to a recent report from ICRA Analytics, India’s Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) listed on the stock exchanges registered strong appreciation in 2025, outperforming the Nifty50 index and government securities comfortably. The report indicates that Real Estate Investment Trusts (REITs) performed well within the real estate sector due to high leasing volumes and stable rental yields, while power Infrastructure Investment Trusts (InvITs) also performed well due to stable toll and tariff revenues. However, some road Infrastructure Investment Trusts (InvITs) performed below par due to sector-specific reasons. Investors rewarded these instruments for their risk-adjusted returns, especially when equity market volatility increased, and macroeconomic trends shifted during the year.
The performance of these trust instruments has been driven by structural supports such as increased institutional investment, supportive regulatory actions from market infrastructure regulators, and greater interaction between capital markets and alternative assets. Their strong performance has been driven by strong operating performance across assets and rising investor confidence through stable distributions and yields. This is a rapidly changing landscape that positions Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) as stable, long-term investment options in the Indian financial system, particularly for those seeking diversification and stable yields in a volatile market environment.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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