Forget down payments and upkeep! Invest in Indian real estate with REITs

A Real Estate Investment Trust (REIT) in India is a business that owns, runs, or funds income-producing real estate in a variety of property industries.

REITs enable investors to combine their funds and participate in a diverse portfolio of real estate assets.

Moreover, these assets may include office buildings, shopping malls, residential properties, hotels, and others. In India, the Securities and Exchange Board of India (SEBI) created REITs in 2014 to allow investors to engage in the Indian real estate market without physically owning the buildings.

REITs must release a considerable amount of their earnings as dividends to shareholders, making them appealing to income-seeking investors. REITs are organised on three tiers: Sponsor, Trustee, and Manager.

How do REITs function in India?

• Investors donate funds to the REIT.
• The REIT invests this money in income-producing real estate.
• The money from rentals and other sources is dispersed to investors as dividends, which are normally approximately 90% of their earnings, as required by SEBI.

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Can people invest in REITs in India?

Yes, people can. REITs are publicly traded, so people may purchase and sell units in the same way that they would stock.

This makes it an attractive choice for those looking to invest in real estate without the headache of physically purchasing and maintaining properties.

Moreover, to invest in a REIT in India, people would normally need to purchase REIT units through a stockbroker, just like they would buy business stock. REIT units are exchanged on stock markets, which provides investors with liquidity.

However, careful study is required to understand the hazards involved with investing in REITs, which include market volatility, interest rate changes, and property market circumstances.

India currently has five registered REITs. These include Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and One Real Estate Investment Trust.

Here are some further things to consider:

• REITs are a relatively new financial vehicle in India, with the first being issued in 2014.
• There are several sorts of REITs, each with an emphasis on a certain property type (office, retail, etc.).
• In addition, imagine speaking with a financial advisor to see if REITs match people’s goals for investing and risk tolerance.