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Real Estate, REITs & InvITs

Own property without buying property — and rethink what real estate means.

Real estate has built more Indian wealth than any other asset class — and also locked up more capital. REITs and InvITs let you own income-generating real estate and infrastructure in small units, traded like stocks.

🏠Direct property — the trade-offs

A house you live in is a home, not an investment. A rental property is an investment with real headaches.

Rental yield — Indian residential yields are just 2–3% p.a. pre-tax.
Hidden costs — Stamp duty 5–7%, maintenance, vacancy, repairs eat the yield.
Illiquid — Selling can take 6–18 months and 1–2% brokerage.

🏬REITs — real estate, demat-style

A REIT owns commercial properties (offices, malls). You buy units on NSE/BSE, get rental income as quarterly distributions.

Entry — ₹300–500 per unit. No paperwork, no tenants, no plumbing.
Returns — 6–8% distribution yield + capital appreciation. Indian REITs: Embassy, Mindspace, Brookfield, Nexus.
Rule — SEBI mandates ≥80% in completed, income-producing properties; ≥90% of income distributed.

🛣️InvITs — for infrastructure

Same structure as REITs but for roads, power lines, gas pipelines. Higher yield (8–10%), more sensitive to tariffs and regulation.

Micro Pro Tips

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Compare yield to FD — If a REIT yields 6.5% and FD gives 7%, the REIT only wins if you also expect capital appreciation.
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Don't put 80% in one flat — Concentration risk is the biggest mistake Indian families make with real estate.

🌟 Real estate belongs in a balanced portfolio, but not necessarily as a flat. REITs and InvITs give you exposure without the keys, the tenants, or the lock-in.