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Explainer: What are REITs and how to invest in them

Business

Real Estate Investment Trusts (REITs) are opening up India's commercial property market to regular investors.
As Pratik Dantara from the Indian REITs Association explained at the Mint Money Festival, you can start with as little as ₹500—kind of like a mutual fund, but for office buildings and malls.
This means you get a share of rental income and rising property values, without any landlord headaches.

REITs are regulated by SEBI

REITs are regulated by SEBI, so there's oversight and transparency.
Since the first REIT listing in 2019, Indian REITs have delivered about 15% annual returns through dividends and growth.
The number of retail investors has jumped from just 6,000 in 2019 to nearly 300,000 today.
Even though only 12% of India's commercial real estate is owned by REITs (compared to 98% in the US), there's huge room for growth—especially as sectors like healthcare and logistics expand.