Fundraising through Real Estate Investment Trusts (REITs) nearly doubled to ₹9,300 crore in the financial year 2025-26 (FY26), even as the total number of issues remained low at three. This trend indicates larger capital mobilisation through individual offerings compared to previous years.
By comparison, REITs had raised ₹4,728 crore through two issues in FY25. The average amount raised per issue in the year ended March 2026 rose by 31 percent to reach ₹3,100 crore, up from ₹2,364 crore in the preceding year. Going back to FY24, three issues had collectively raised ₹5,905 crore, demonstrating uneven fundraising patterns that previously peaked at ₹11,985 crore in FY21 before dropping to ₹950 crore the following year.
Industry experts note that these larger issue sizes point to capital concentration in individual REIT transactions. Chetan Chichra, Partner at Grant Thornton Bharat, stated that the rise in average issue size suggests larger pools of institutional and long-term capital are being deployed per transaction. He added that this reflects increasing market maturity and higher investor comfort with the asset class.
Meanwhile, Infrastructure Investment Trusts (InvITs) followed a different trajectory in FY26. InvIT collections declined by 21 percent to ₹21,026 crore, down from ₹26,714 crore in FY25 and ₹33,119 crore in FY24. However, the number of InvIT issues increased to 12 in FY26 from 11 in the previous year. The drop in total funds raised was primarily driven by a lower average issue size, which fell by 28 percent from ₹2,429 crore in FY25 to ₹1,752 crore in FY26.
This divergence between the number of issues and funds raised suggests that InvIT fundraising is being distributed across smaller transactions rather than relying on a few large issuances. Chichra noted that this points to a calibrated funding environment where issuers raise capital for specific requirements such as asset acquisitions, refinancing, or business expansion.
Chanakya Chakravarti, Global Real Estate Investor and Capital Strategist, observed that the REIT data points to a maturing market where capital concentrates around larger platforms with established portfolios and predictable rental income. Regarding InvITs, Chakravarti stated that the decline in fundraising should be viewed as a more asset-specific model where sponsors monetise operating assets and recycle capital, rather than a sign of weak investor appetite.
Looking ahead to FY27, Chakravarti expects both asset classes to remain relevant with different growth drivers. REITs are projected to benefit from expanding commercial portfolios and strong demand for income-generating assets, while InvITs will likely find support from broader infrastructure investment and ongoing asset monetisation initiatives.
"The contrasting trends between REITs and InvITs in FY26 highlight the evolving maturity of India's alternative financing landscape. While REITs are attracting larger pools of institutional capital per transaction into commercial portfolios, InvITs are moving toward a more calibrated, asset-specific fundraising model focused on recycling capital and meeting targeted expansion needs. Both instruments remain vital for long-term capital mobilisation across real estate and infrastructure sectors." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
