How to Invest in REITs in India: A Complete Beginner’s Guide (2025)
Introduction
Real Estate Investment Trusts (REITs) have become one of the most popular investment options in India, offering investors a way to earn returns from real estate without directly owning property. If you’re looking to diversify your portfolio and earn a steady income, learning how to invest in REITs in India is a smart move.
What Are REITs?
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate. In India, REITs pool money from multiple investors to invest in commercial properties such as office spaces, shopping malls, and hotels. Investors receive dividends from the rental income and capital appreciation of these properties.
Examples of REITs in India include:
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Embassy Office Parks REIT
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Mindspace Business Parks REIT
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Brookfield India Real Estate Trust
Why Invest in Indian REITs?
The following are the main advantages of purchasing REITs:
Regular Income: Dividends from rental income are paid to investors.
Diversification: Increases your investment portfolio’s exposure to real estate.
Liquidity: Unlike real estate, REITs are traded on stock exchanges.
Low Investment Barrier: As little as ₹10,000 can be used to begin investing.
Professional Management: Skilled real estate managers oversee the properties.
How to Invest in Indian REITs
To begin investing in REITs, take these easy steps:
1. Create a Trading and Demat Account
You must have a Demat and trading account with a licensed stockbroker to purchase REIT units. Like stocks, REITs are listed on the NSE and BSE.
2. Examine the Available REITs
Examine each REIT’s performance, property portfolio, occupancy rate, and dividend history before investing.
3. Make a Direct or Indirect Investment Decision
Invest directly by purchasing listed REIT units on the stock exchange.
Invest indirectly by using mutual funds or exchange-traded funds (ETFs) that contain REIT assets.
4. Make Your Purchase
After you’ve made up your mind, use your broker to place a buy order. Typically, the minimal investment is a few thousand rupees.
5. Monitor and Evaluate Performance
Regularly check market conditions, dividend yields, and the REIT’s performance.
Taxation on REIT Investments in India
Understanding tax implications is crucial:
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Dividend Income: Taxed as per your income tax slab.
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Capital Gains: Short-term (within 3 years) taxed at 15%; long-term (beyond 3 years) taxed at 10%.
Top REITs in India (2025)
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Embassy REIT – India’s first and largest listed REIT.
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Mindspace REIT – Known for its premium office spaces.
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Brookfield REIT – Strong presence in major commercial hubs.
Tips for Investing in REITs
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Diversify across multiple REITs for stability.
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Focus on REITs with high occupancy and rental yield.
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Stay updated on interest rates — they can affect REIT performance.
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Invest for the long term to benefit from capital appreciation.