REITs in India: A Beginner’s Guide to Investing in Real Estate
Discover how Real Estate Investment Trusts (REITs) allow you to invest in high-quality real estate with just a few thousand rupees, offering both income and capital appreciation.
ReitsReal EstateInvestmentDividendsLiquidityReal Estate NewsOct 12, 2025
What exactly is a REIT?
Think of a REIT as a mutual fund, but instead of investing in stocks or bonds, it pools money from many investors to buy and manage commercial real estate. These include office buildings, malls, hotels, and warehouses. The rental income generated is shared with investors, usually through dividends.
Why REITs are gaining popularity in India
India has only a few listed REITs—like Embassy Office Parks, Mindspace Business Parks, and Brookfield India—but they’re already drawing attention. With property prices soaring in cities, REITs give investors a way to access Grade-A real estate with as little as Rs 10,000. Plus, because they are listed on stock exchanges, you can buy and sell units like shares, making them far more liquid than physical property.
How investors make money from REITs
There are two main ways you earn: regular dividend payouts from rental income, and capital appreciation when the value of REIT units rises. Typically, Indian REITs are required to distribute at least 90 percent of their net distributable cash flows to investors, which means steady income potential.
Risks you should know
REITs are not risk-free. Their performance depends heavily on occupancy levels and rental demand. If businesses cut back on office space or malls see fewer shoppers, rental income could shrink. Also, like any market-traded security, REIT unit prices can fluctuate with interest rates and investor sentiment.
How to invest in REITs in India
Investing is simple—you can buy units directly through stock exchanges (NSE/BSE) just like you buy equity shares. Alternatively, you can invest via mutual fund schemes that hold REITs. The entry cost is low, paperwork is minimal, and you get exposure to a diversified basket of properties.
Frequently Asked Questions
What is a REIT?
A REIT (Real Estate Investment Trust) is a company that owns, operates, or finances income-generating real estate. It pools money from many investors to buy and manage commercial properties like office buildings, malls, and hotels.
How do REITs generate returns for investors?
REITs generate returns for investors through regular dividend payouts from rental income and capital appreciation when the value of REIT units rises. They are required to distribute at least 90 percent of their net distributable cash flows to investors.
What are the risks associated with REITs?
REITs are subject to risks such as changes in occupancy levels, rental demand, interest rates, and investor sentiment. If businesses reduce office space or malls see fewer shoppers, rental income can decrease, affecting the REIT's performance.
How can I invest in REITs in India?
You can invest in REITs by buying units directly through stock exchanges (NSE/BSE) or through mutual fund schemes that hold REITs. The process is similar to buying equity shares, with low entry costs and minimal paperwork.
What are the benefits of investing in REITs?
Investing in REITs allows you to access high-quality real estate with a low initial investment, provides steady income through dividends, and offers liquidity as units can be bought and sold like shares on stock exchanges.
Related News Articles
Maharashtra Simplifies Property Registration: A Game-Changer for Homebuyers
Harsh Parikh, Partner, Khaitan & Co explains how Maharashtra's consolidation of property registration offices will benefit the real estate industry.
Maharashtra RERA Reverts to Old Website Due to Technical Glitches
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has temporarily switched back to its previous IT platform, Maha IT, after facing significant technical issues with the new system.
Rescued: Teenage Girl Kidnapped 6 Months Ago from Latur Found in Pune
A teenage girl, kidnapped six months ago from Latur, has been rescued in Pune. The kidnapper has been arrested, bringing relief to the victim's family and local authorities.
Mahindra Lifespace Developers Targets Rs 1500 Crore Fundraising - ET Realty
Mahindra Lifespace Developers (MLDL), the real estate and infrastructure development arm of the Mahindra Group, is set to raise Rs 1,500 crore to bolster its expansion plans.
Hyderabad Surpasses Mumbai with Rs 1.15 Lakh Crore in Home Sales in 2024
Hyderabad has emerged as the leading city in the real estate sector, recording Rs 1.15 lakh crore in home sales in 2024. According to the latest report by CREDAI, the North West region of Hyderabad continues to dominate the residential market, contributin
RBI Revamps Loan Exposure Limits for UCBs, Introduces 25% Cap
The Reserve Bank of India (RBI) has introduced new guidelines for Urban Cooperative Banks (UCBs), revising their loan exposure limits. The new rules cap the total exposure to housing, real estate, and commercial real estate loans at 25% of total assets, e