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Indian family offices increase allocations to REITs and InvITs
The Nifty REITs and InvITs Index rose 11% in 2024, 20% in 2025, and more than 47% in 2026, helping boost demand among wealthy investors.
Real Estate Investment Trusts and Infrastructure Investment Trusts are drawing more capital from wealthy Indian family offices as investors look for diversification and income, according to LiveMint Markets. Experts said the shift is largely tied to how traditional fixed income looks less attractive on a post tax basis, while REITs and InvITs offer a listed universe that is expanding and distributions that remain appealing. LiveMint Markets also cited reasons including investor comfort that these trusts are backed by real assets, regulatory supervision, and the structure where more than 80% of assets are revenue generating, which experts say helps reduce construction risk. They also pointed to mandatory cash flow distributions and investors' experience with quarterly distributions as markets prices have risen. Growth in participation is also notable, with the unitholder base of Embassy Office Parks REIT rising about 34 fold over seven years to more than 135,000, and Mindspace Business Parks REIT reporting a 40% year on year increase in unitholders to 90,478 as of December 31, 2025. The outlet added that institutional interest is increasing, including mutual funds holding 25% of units in Brookfield India Real Estate Trust, and said investors may be using REITs and InvITs as a complement to debt allocations rather than a full replacement.