ICRA Analytics data shows REITs and InvITs outperform Nifty50 and G-Secs in 2025

India’s listed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) emerged as one of the best-performing asset classes in calendar year 2025, significantly outperforming traditional market benchmarks, according to data released by ICRA Analytics based on InfRE360 and NSE data.

On an equal-weight basis, listed REITs and InvITs delivered a combined return of 19.55% in 2025, well ahead of the Nifty50 Total Return Index (TRI) at 11.42% and the G-Sec Index at 6.81%. The performance stresses growing investor appetite for yield-oriented instruments backed by real estate and infrastructure assets.

Within the trusts universe, performance varied by segment. REITs led the pack with a 29.68% return, supported by steady leasing activity and stable cash flows. Power InvITs returned 20.22%, reflecting operational resilience and favourable market conditions. In contrast, Road InvITs lagged with a 6.55% return, weighed down by asset-specific challenges and the impact of new listings.

ICRA Analytics noted that these figures are based on an equal-weight methodology across all listed entities, rather than market-cap weighting, and include both capital appreciation and distributions. December 2025 distributions are yet to be credited, which could further lift overall returns.

According to Madhubani Sengupta, Head – Knowledge Services, ICRA Analytics, the year-on-year trend shows mixed movement within the trusts space, even as the overall category strengthened.

“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%, while Road InvITs dipped from 9.49% to 6.55%, highlighting divergent performance across infrastructure-linked assets,” Sengupta said.

She added that the interest rate environment in 2025 shifted investor preference away from G-Secs towards equity-linked and income-generating instruments. As a result, sovereign bonds underperformed, while listed trusts continued to attract strong demand due to predictable cash flows, competitive yields, and rising interest in real estate- and infrastructure-backed investments.

ICRA Analytics said public trusts have positioned themselves as a resilient alternative to traditional equities and fixed-income products, particularly for investors seeking regular distributions alongside capital appreciation.