Definition of REITs (Real Estate Investment Trusts)
REITs (Real Estate Investment Trusts) are companies that own and operate income-generating real estate — typically commercial properties like office buildings, malls, and warehouses — and are listed on stock exchanges, allowing retail investors to participate in real estate income without buying property.
In India, REITs are regulated by SEBI. The major listed Indian REITs are Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust. REITs must distribute at least 90% of their income to unitholders, providing regular income similar to rental yield.
REITs offer: commercial real estate exposure with small amounts (unit prices typically ₹200–400), regular income distributions (quarterly or semi-annual), professional management, and better liquidity than physical property. For investors who want real estate in their portfolio without the hassle of property ownership, REITs are an excellent alternative that also helps diversify away from equity and debt.