How to invest in REITs in India and the benefits of investing in REITs
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How to invest in REITs in India and the benefits of investing in REITs

Last updated - Oct 10th, 2022

While 10 years ago, real estate investments were just limited to property investments, the new age real estate industry has given its investors an opportunity to combine invest in properties as well as stocks through a single investment class and that’s- REITs (Real Estate Investment Trusts). The reason behind calling this a new-age real estate industry is because the real estate sector is advancing and adopting many technological innovations like Fintech and has evolved as ‘Proptech’ within a decade’s time! REIT is a fintech where people can collectively pool their capital and invest online in rent-generating properties.

REITs (Real Estate Investment Trusts) are modeled like mutual funds, a publicly-traded company that owns, manages and finances income-generating properties. REIT companies pool the capital of various investors giving them an opportunity to earn dividends from real estate investments without having to own, manage or finance a property on their own! SEBI had introduced REIT in 2007, but due to certain limitations on the drafted rules and regulations by SEBI it was rejected and then after 2016, REITs are now full-fledged into action in India.

Backed by SEBI, REITs are the world’s most affordable, secure, and lucrative real estate investment class. REIT is a bunch of affordability, tax benefits, portfolio diversification, and safe investment experience. There are currently 3 REIT companies in India- Mindspace REITs, Brookfield REITs, and Embassy REITs. As stated before, REITs are like mutual funds and just as you analyze a stock before investing in mutual funds, REITs need to be analysed too. There are certain guidelines to be followed and factors to be kept in mind before investing in REITs such as occupancy rate, tenant quality, geographical diversification, etc. There is more to it, in this detailed article by our co-founder Kenish Shah, read on.

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