Reits are a kind of real estate mutual funds
In the big cities of India, you can now become a partner in the property with a small amount of Rs 500 in the gleaming malls, luxurious office building and huge commercial complex. The name of this amazing way is the Real Estate Investment Trust, which is called Reit (RIT). Through this, you can directly take advantage of the earnings from big real estate properties without any hassle of buying property, taking loan or maintenance.
What is this reit?
You can understand REIT as a mutual fund of the real estate world in easy language. Just as your money is invested in the shares of different companies in a mutual fund, in the same way thousands of investors are collected and invested in commercial properties that give them big and profitable. These properties are not small shops, but big offices parks, shopping malls and logistics hubs, which are rented to rented to well-known companies of the country and the world.
A team of professionals manage this entire investment, who is working to identify the right property, buy it and ensure good income from it. Investors only have to invest money, the rest of the headache belongs to the management team.
How is it earning?
Investors get double benefit in Reit. The first and biggest advantage is regular income. A large part of the fare that comes every month from these big properties is given to investors. A strict rule of market regulator SBI is that every reit will have to share at least 90% of its total taxable income as dividend (dividend) every six months. This rule makes it a stable and reliable income source.
The second advantage is Capital Gain, ie the benefit of increase in the price of property. As the value of the property increases over time, the value of your investment also increases. When you sell your units, you get this increased value.
Low money, big profits
Experts say that Reit has emerged as a better and safe option in many ways than direct investment in real estate. The biggest advantage is that you can become a part of the big projects, such as a few hundred or thousand rupees, who need crores of rupees to buy.
In addition, buying and selling it is easy like a share. These are listed on stock exchange, that is, you can buy their units from your mobile whenever you want and can sell whenever you want. You do not need to find customers or go round the registry office. It also gives diversity to your investment portfolio, because it does not have a direct and much effect of stock market fluctuations.
What reit are they earning in India?
The model of Reit has been successful around the world for decades, but it started in India for a while. The country’s first Reit, Embassy Office Parks Reit, was launched in March 2019. After this, options like Mindspace Business Parks Reit and Brookfield India Real Estate Trust also came in the market. Recently, with the arrival of Nexus Select Trust in 2023, investors now have a total of four options.
Existing reits and their prices (till 1 October 2025)
- Embassy Office Parks Reit: ₹ 423.80
- MindSpace Business Parks Reit: ₹ 459.20
- Brookfield India Real Estate Trust: ₹ 349.40
- Nexus Select Trust: ₹ 165.90