Fundraise by InvITs, REITs surges multi-fold to `17,116 cr in FY24
Investor enthusiasm towards InvITs and REITs is on the rise, with fundraising through these routes reaching Rs 17,116 crore in 202324, a 14-fold year-on-year surge fuelled by the prospect of stable returns. Going ahead, the outlook for infrastructure investment trusts (InvITs) and real estate investment trusts (REITs) in terms of fundraising for the current fiscal FY25 is very optimistic, industry experts said.
"After Sebi's amendments to the SM (small and medium) REITs regulations last month, we are poised for a transformative shift. The Indian fractional ownership market, set to evolve into SM REITs, is projected to grow from USD 500 million to over USD 5 billion in AUM by 2030, indicating a significant expansion and bright prospects for SM REITs," WiseX CEO Aryaman Vir said.
Moreover, the road sector is likely to be a major beneficiary, likely attracting 75 per cent of the new inflows, thanks to a robust pipeline of assets ready for monetisation and a strong pace of infrastructure development, he added. According to data compiled by Prime Database.com, REITs
and InvITs have raised Rs 17,116 crore in 2023-24 compared to a record low of Rs 1,166 crore in 2022-23.
Besides, FY24 saw the first ever OFS by an InvIT, with Data Infrastructure Trust raising Rs 2,071 crore. The impressive growth in funds raised through the route could be attributed to several factors like regulatory support, a focused approach on infrastructure development and the growing popularity of fractional ownership in real estate, Vir said.