BSE launches REITs Index: What investors need to know
What's the story
The Bombay Stock Exchange (BSE) has launched the BSE REITs Index, a new tool to track the performance of listed Real Estate Investment Trusts (REITs) in India. The index, with a first value date of September 19, 2022, uses a capped free-float market capitalization methodology. It currently includes six listed REITs and will be reconstituted twice a year in March and September.
Investment insight
Purpose of the index
The BSE REITs Index serves as a benchmark for the performance of listed REITs in India.
This is especially useful for investors who want to invest in income-generating real estate assets like office and commercial properties through listed units instead of directly buying physical property.
The index currently includes six listed REITs, with Embassy Office Parks REIT having the highest weight at 32.18%, followed by Brookfield India Real Estate Trust (23.44%) and Nexus Select Trust (21.2%).
Index performance
Performance of the index
As of July 31, 2026, the BSE REITs Index had a one-year total return of 18.54% and a three-year annualized total return of 18.17%.
On a price-return basis, the index gained 11.66% over one year and delivered an annualized return of 11.20% over three years.
The index level stood at ₹1,159.66 on a price-return basis and ₹1,469.77 on a total-return basis as of July-end this year.
Investment strategy
Limitations of the index
The BSE REITs Index provides investors with a single benchmark to track the listed REIT segment, instead of looking at individual REIT performances.
However, it's important to note that the index's performance doesn't necessarily reflect returns an investor would get by investing in any one REIT.
Individual REITs can perform differently depending on occupancy rates, rental income, property valuations, and interest rates.