Real Estate Investment Trusts (REITs) in India 2025: What You Need to Know Before Investing
If you have ever wanted to invest in real estate but didn’t have enough money to buy a property, there’s good news. A new way of investing, called Real Estate Investment Trusts or REITs, is becoming very popular in India. It allows you to invest in real estate without owning a building or land. That means you can earn returns from properties without the stress of buying or managing them.
This article from Chiangrai Times explains what REITs are, how they work, and why they might be a smart choice for Indian investors in 2025.
What Is a REIT?
A REIT is a company that owns, operates, or finances income-producing real estate. It collects rent from commercial spaces like office buildings, shopping malls, hospitals, and hotels. Then it shares that rental income with its investors. REITs are listed on stock exchanges, just like shares of companies. You can buy and sell REIT units easily through a trading account.
In India, REITs are regulated by SEBI (Securities and Exchange Board of India) to protect investor interests.
Why Indians Are Choosing REITs in 2025
Here’s why REITs are catching attention this year:
- Low Investment Required: You don’t need lakhs of rupees to start. Many REITs allow you to invest with a few thousand rupees.
- Regular Income: Most REITs give returns every quarter or half-year as dividends.
- Safe & Transparent: SEBI rules make sure REITs follow strict guidelines.
- Easy to Buy or Sell: No need for a broker or agent – just use your trading account.
Types of REITs You Can Invest In
There are mainly three types of REITs in India:
- Equity REITs: These own and manage real estate. Most common in India.
- Mortgage REITs: They lend money to property owners and earn from interest.
- Hybrid REITs: A mix of both equity and mortgage REITs.
Right now, Equity REITs are the most active in India.
Big Players in India’s REIT Market
In 2025, India has four major REITs that are listed and active:
- Embassy Office Parks REIT
- Mindspace Business Parks REIT
- Brookfield India Real Estate Trust
- Nexus Select Trust
These REITs manage large office spaces and malls in cities like Mumbai, Bangalore, and Hyderabad. In the last quarter alone, they paid ₹1,553 crore in dividends to over 2.6 lakh investors.
How to Start Investing in REITs
Want to invest? Here’s how you can get started:
- Open a Demat & Trading Account – If you already invest in shares, use the same account.
- Check REIT Performance – Look at dividend history, property location, and occupancy rates.
- Buy REIT Units – Purchase them directly through the stock market.
- Monitor Returns – Keep an eye on your dividends and market price.
Pros and Cons of REITs
Pros:
- Passive income
- Diversification
- No maintenance headache
- Easy entry and exit
Cons:
- Market risk (like stocks)
- Dividend income is taxable
- Limited price growth compared to owning property
What’s New in 2025?
SEBI is planning to allow mutual funds to invest more in REITs. This means more money will flow into the sector, improving liquidity and investor confidence. Also, REITs in industrial and warehousing sectors are expected to grow soon.
Final Words
REITs are a great option if you want to invest in real estate but don’t want the hassle of buying property. You can earn a steady income with low risk and without spending huge amounts of money.
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