REITs

Earn from Commercial Real Estate Without Buying Property — Starting Rs.300

REITs allow retail investors to own fractional commercial real estate — offices, malls, and warehouses — and earn regular rental income. Listed on NSE and BSE with high liquidity.

8–10%

Dividend Yield

Listed on NSE/BSE

High Liquidity

From Rs.300

Min Investment

Start Investing Talk to Advisor

REIT Investment Snapshot

REITNexus Select Trust

Asset TypeGrade A Offices

Dividend Yield8.5% p.a.

Capital Appreciation6–8% estimated

Total Return14–18% CAGR

KEY FEATURES

Why Invest in REITs?

Own Grade A Commercial Real Estate

Invest in premium office parks, malls, and warehouses occupied by Fortune 500 tenants — assets that were previously accessible only to institutional investors.

Mandatory 90% Distribution

SEBI regulations require REITs to distribute at least 90% of net distributable cash flow to unitholders. This ensures high and regular dividend income.

Dual Return: Income + Appreciation

REITs provide both regular dividend distributions (8–10% yield) and potential capital appreciation as underlying property values grow over time.

Listed and Liquid

Unlike direct real estate investment, REIT units are listed on NSE and BSE. You can buy and sell units during market hours — same-day liquidity.

SEBI Regulated and Audited

All REITs are registered with SEBI, independently audited, and required to appoint a trustee to protect unitholder interests. Professional asset management team manages properties.

Hedge Against Inflation

Commercial real estate leases have built-in rent escalation clauses (typically 5% per year or CPI-linked). REIT income therefore grows with inflation over time.

ELIGIBILITY

Who Should Invest in REITs?

REITs suit income-seeking investors who want real estate exposure without the hassle and capital requirements of direct property ownership.

✓Investors seeking regular income beyond FD returns
✓Those wanting real estate exposure without property purchase
✓Long-term investors with 3+ year horizon
✓HNIs looking for portfolio diversification with liquid alternative assets
✓Retirees needing inflation-protected income
✓NRIs wanting exposure to India's commercial real estate growth

Documents Required

✓PAN Card
✓Aadhaar Card
✓Demat account (mandatory — REITs are held in demat form)
✓Bank account linked to demat
✓KYC completed with broker/DP
✓FATCA declaration for NRIs

THE PROCESS

How It Works

Open Demat Account if Needed

REITs are held in demat form. If you already have a demat account with a SEBI-registered broker, you are ready to invest. We help set one up if needed.

Select Suitable REIT

India currently has four listed REITs: Embassy, Mindspace, Brookfield, and Nexus. We review each on yield, occupancy rates, tenant quality, and leverage to recommend the best fit.

Place Purchase Order

Buy REIT units through your existing brokerage platform or through our recommended broker. Minimum purchase is typically 1 unit (Rs.200–400 depending on the REIT).

Receive Dividends and Monitor

Dividends are declared quarterly or semi-annually and credited to your registered bank account. Monitor occupancy levels and distribution announcements through the REIT's investor portal.

Frequently Asked Questions

Are REITs safe investments in India?

REITs in India are regulated by SEBI and hold income-generating Grade A commercial properties with long-term leases from blue-chip tenants. They are lower-risk than direct equity but carry real estate market risk, interest rate risk, and occupancy risk. Embassy REIT and Mindspace REIT have a strong track record since listing in 2019–2020.

How often do REITs pay dividends?

Indian REITs are required to make distributions at least twice a year. Most REITs distribute quarterly. Embassy REIT, for instance, has been consistent with quarterly distributions and has grown its distribution per unit each year since listing.

What is the tax treatment of REIT distributions?

REIT distributions have three components: (1) Interest income — taxed at slab rate; (2) Dividend income — taxed at slab rate from April 2020; (3) Capital gains on unit sale — STCG at 15% if held under 3 years, LTCG at 10% above Rs.1 lakh if held over 3 years. A portion of distribution may be treated as return of capital — which is tax-free.

Can REITs provide capital appreciation along with income?

Yes. As Grade A commercial real estate in India appreciates over time, the NAV of REIT units tends to rise. Embassy REIT units listed at around Rs.300 and have appreciated significantly. Total return (yield + appreciation) from Indian REITs has been in the range of 12–18% for patient investors.

What is the difference between a REIT and an InvIT?

Both are SEBI-regulated pass-through structures. REITs invest in commercial real estate (offices, malls). InvITs (Infrastructure Investment Trusts) invest in infrastructure assets like roads, power transmission lines, gas pipelines, and airports. Both offer regular income and are listed on exchanges. InvITs generally carry more project-level risk and are more suitable for sophisticated investors.