Real Estate Investment Trusts (REITs) in India: A Simple Guide for New Investors
Many people in India dream of investing in real estate, but property prices and maintenance costs often make it difficult. What if you could earn from real estate without owning any physical property? That’s where REITs come in.
In this guide by Entrepreneurs, we explain what REITs are, how they work, and how you can invest in them — all in easy words.
What Is a REIT?
A Real Estate Investment Trust (REIT) is a company that owns and manages income-producing properties like office buildings, malls, warehouses, and hotels. These properties generate rental income. The REIT collects this rent and gives a part of it to investors as regular income.
Think of a REIT like a mutual fund — but instead of buying stocks or bonds, it buys real estate.
REITs in India: A Quick Overview
REITs were launched in India in 2019. As of 2025, four main REITs are listed on Indian stock exchanges:
- Embassy Office Parks REIT
- Mindspace Business Parks REIT
- Brookfield India REIT
- Nexus Select Trust REIT
These REITs own high-end office spaces in cities like Bengaluru, Mumbai, and Hyderabad, leased to top companies like Google, IBM, and Accenture.
Why Are REITs Popular in India?
More than 2.5 lakh retail investors have already invested in REITs. Here’s why:
Steady Income
REITs are required by law to give out at least 90% of their rental income to investors. This makes them a good choice for people looking for regular returns.
Easy to Buy and Sell
REITs are traded on the stock market just like shares. You can buy them through your demat account.
Affordable
Unlike buying a flat or a shop, where you need lakhs or even crores, you can start investing in REITs with as little as ₹300–₹500.
How to Invest in REITs in India
Just follow these simple steps:
- Open a Demat Account – If you already buy stocks, you’re ready to go.
- Choose a REIT – Look at their past returns, the quality of properties they own, and their tenant list.
- Place Your Order – Buy REIT units just like you buy shares.
- Get Dividends – Enjoy regular payouts directly into your bank account.
REITs: March 2025 Performance Snapshot
| REIT Name | Dividend Paid (₹ Cr) | No. of Investors |
| Embassy Office Parks | ₹758 Cr | 1.4 Lakh+ |
| Mindspace Business Parks | ₹425 Cr | 60,000+ |
| Brookfield India | ₹370 Cr | 50,000+ |
(Source: Company reports, March 2025)
What Are the Risks?
Like any investment, REITs also have risks. Here are a few:
- If the economy slows down, rental income may fall.
- Property values may fluctuate.
- If companies leave office spaces, REITs may earn less.
But the good part? REITs usually have long-term leases with reliable tenants, which gives some protection.
Should You Invest?
If you want to invest in real estate but don’t have the money or time to manage a property, REITs are a smart choice. They offer:
- Stable income
- Lower entry cost
- No maintenance headaches
Ideal for salaried professionals, retirees, or anyone who wants to diversify their portfolio.
Final Words
REITs are changing how Indians invest in real estate. You don’t need to buy a flat or shop to earn rental income anymore. With REITs, you can enjoy the benefits of property investment from your mobile phone.
For more beginner-friendly guides on investing and smart finance tips, visit Entrepreneurs — your go-to destination for business and money news in simple language.
