REITs and InvITs outperform traditional benchmarks indices in 2025: ICRA Analytics

India’s listed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) continued their strong upward trajectory through calendar year 2025, significantly outperforming traditional market benchmarks and reinforcing their standing as preferred yield-oriented investment avenues.

According to data sourced from InfRE360 indicates that public trusts have emerged as one of the most resilient and rewarding asset classes during the year.

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In 2025, listed REITs and InvITs significantly outperformed traditional benchmarks, delivering a strong 19.55% return on an equal weight basis, well ahead of the Nifty50 TRI at 11.42% and the G Sec Index at 6.81%.

REITs led the segment with an exceptional 29.68%, supported by robust leasing and stable yields, while Power InvITs posted a healthy 20.22%. Road InvITs trailed at 6.55%, reflecting asset specific and sectoral constraints. December quarter distributions are yet to be accounted for, which will further lift overall returns.

According to Madhubani Sengupta, Head- Knowledge Services, ICRA Analytics, though trusts delivered stronger returns in 2025, the year-on-year data reflects mixed movement, with road InvITs recording a decline even as REITs and power InvITs advanced. While the Nifty50 TRI edged from 10.04% to 11.42%, and G Secs declined from 10.06% to 6.81%, public trusts surged from 13.14% to 19.55%.

“REITs nearly doubled their returns, rising from 16.81% in 2024 to 29.68% in 2025, reflecting sustained leasing momentum and consistent yield profiles. Power InvITs advanced from 9.43% to 20.22%, reflecting operational resilience and market conditions, whereas Road InvITs dipped from 9.49% to 6.55%, highlighting mixed performance trends across infrastructure linked assets and the impact of new listings,” Sengupta said.

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The interest rate environment in 2025 tilted investor preference towards equity linked and yield oriented instruments, which weighed G‐Sec performance. In contrast, trusts continued to attract strong interest, supported by steady cash flows, competitive yields, and growing demand for infrastructure & real estate backed investment options, she said.

Performance figures for REITs, InvITs, and the broader trust category are based on an equal weight calculation across all listed entities rather than market cap weighting. Returns capture both capital appreciation and credited distributions, with December 2025 distribution credits still pending.