You Can Earn Without Buying Land: The New Trend in Real Estate

A system that helps investors earn from the real estate boom without directly buying land, Real Estate Investment Trusts (REITs), is gaining traction in the Indian market. Through REITs, investors can earn income by becoming partners in income-generating commercial properties such as offices, shopping malls and warehouses.

Since REIT units are listed on stock exchanges, investors can sell them anytime and convert them into cash. REITs make it possible for ordinary investors to benefit from the rapidly growing commercial real estate sector of the country.

Recently, the Securities and Exchange Board of India (SEBI) has allowed mutual funds to invest in REITs, which experts believe could open up opportunities for better returns and increased investor participation.

Financial analysts suggest that, after the strong growth seen in stocks, gold, and mutual funds in recent years, the next wave of growth could be in the real estate sector.

Listed REITs in India

• Brookfield India Real Estate Trust
• Embassy Office Parks REIT
• Mindspace Business Parks REIT
• Nexus Select Trust
• Knowledge Realty Trust

Current total REIT assets in India: ₹18,000 crore

What is a Real Estate Investment Trust (REIT)?

REITs are institutions that pool money from investors to purchase and manage income-generating commercial properties. About 90% of the income from these assets is distributed to investors as dividends.

The key advantage is that investors can participate in real estate investment without directly purchasing land. Even small investments, starting from as low as ₹100, are possible.

REITs are regulated by SEBI, and since their units are listed on stock exchanges, they ensure transparency and reliability for investors.