Real Estate Investment Trusts (REITs)

A New  Way to Invest  in Property in India

Himanshu Panwar 19-11-2024

What is REIT?

A trust that pools the money of an investor in managing income-generating properties distributes rental income among its investors.

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Low Entry Barrier

Using REITs, you can invest in high-value real estate with only a small amount, therefore making the possibility of owning property.

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Diversification

REITs offer a diversified exposure to commercial buildings, malls, hotels, and other properties thereby reducing investment risk.

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Regular Income

REITs pay out most of the income received to investors as dividends and hence provide a regular income stream.

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Liquidity Advantage

REITs are listed on the stock exchanges like stocks. They have good liquidity as compared to other traditional real estate.

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Professional Management

REITs are professionally managed; the properties are well-maintained and ensure optimum returns.

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Market Growth Potential

With the growing commercial real estate market in India, REITs offer a way to capitalize on growth with minimal hassle.

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Risks Involved

REITs are subject to market risks and fluctuations in property value, and for that, they require detailed research and a long-term perspective.

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