REITs, InvITs together raised Rs 39,024 crore in FY24; here’s what Economic Survey 2024 has to say

Economic Survey 2024 showed that Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) collectively raised Rs 39,024 crore during FY24. This capital influx was more than five times the amount raised in FY23.

The survey further highlighted that the resource mobilisation by infrastructure sectors through debt and equity issuances in the capital market was just over Rs 1,00,000 crore during FY24. REITs have raised Rs 18,840 crore from year 2019 to 2024 while Infrastructure investment trusts (InvITs) raised a total of Rs 1,11,294 crore in the last five years (2019-2024).

“During FY24, Rs 39,024 crore was raised by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), more than five times compared to FY23, supported by the Government’s thrust on infrastructure development,” the survey said. The BSE Realty index has gained 99% in the past one year, while the BSE India Infrastructure index rallied 118% during the same period.

Among the REITs, Nexus Select Trust rallied nearly 31% in the last one year, while benchmark BSE Sensex gained 20% during the same period. During the same period, Embassy Office Parks REIT and Mindspace Business Parks REIT gained 19% and 12%, respectively. On the other hand, IRB InvIT Fund and POWERGRID Infrastructure Investment Trust declined 6% and 17%, respectively, during the same period.

Sharing more about the real estate sector, the survey stated that as per real estate research firm Proptiger, new supply witnessed an all-time high, with 5.2 lakh units launched in 2023, as against 4.3 lakh units in 2022. The momentum continued in Q1 of 2024, witnessing record-breaking sales of 1.2 lakh units, clocking a robust 41% YoY growth. New supply has consistently exceeded one lakh units since Q2 of 2022, underscoring persistent demand-supply dynamics in the housing market.

“Within the services sector, credit disbursal to the ‘commercial real estate’ and ‘trade’ sub-sectors improved in H2 of FY24,” the Economic Survey said.