The popularity of emerging investment instruments REITs and InvITs has hit an all-time low in FY23, with fundraising only reaching Rs 1,166 crore due to factors such as higher bond yields, lack of awareness among investors, limited availability, and absence of new launches. Going forward, changes in tax rules could further deter investors from these instruments. To remain competitive, REITs and InvITs will need to generate better underlying yields or lower their prices. While these instruments are popular in global markets, they are relatively new to Indian investors, with only seven InvITs and three REITs listed on stock exchanges. The government and Sebi have been actively promoting these instruments, but additional initiatives will be required for increased investor participation and to realize their full potential.