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Want Passive Income? Here’s How Indian Investors Can Benefit from REITs
June 10, 2025
Real estate is one of the most trusted investment options in India. But what if you could invest in property without the hassle of buying, maintaining, or renting out real estate? That’s exactly what REITs (Real Estate Investment Trusts) offer—passive income, diversification, and long-term growth.
What Are REITs?
REITs work like mutual funds but for real estate. They pool money from investors and invest in income-generating properties like office spaces, malls, and hotels. As these properties generate rental income, the earnings are distributed among investors in the form of dividends.
In simple words—you earn from real estate without owning physical property!
Why Should Indian Investors Consider REITs?
Regular Passive Income
REITs are required to distribute at least 90% of their rental income as dividends,
meaning you get a steady stream of income—without the headache of dealing with
tenants or maintenance.
Affordable Entry Point
Unlike traditional real estate, which requires lakhs or even crores to invest, REITs
allow you to start with as little as ₹300-₹500 per unit (just like buying shares in a
company).
Diversification & Stability
REITs invest in commercial properties across multiple cities and industries, reducing
the risks tied to a single asset. Plus, real estate-backed investments tend to remain
stable even during market fluctuations.
High Liquidity
Selling physical property can take months. REITs, however, are listed on stock
Tax Benefits
REIT dividends are taxed favourably compared to rental income from physical
property, making them a smart tax-efficient choice.
How to Invest in REITs in India?
Investing in REITs is as easy as buying stocks. Here’s how:
- Open a Demat & Trading Account – If you already invest in stocks, you’re good to go!
- Choose a Listed REIT – Some popular ones in India include Embassy Office Parks REIT, Mindspace REIT, and Brookfield REIT.
- Invest via Stock Exchange – Buy REIT units through NSE or BSE, just like shares.
- Hold & Earn – Enjoy dividends and potential capital appreciation over time.
Who Should Invest in REITs?
- Salaried professionals looking for extra income
- Investors wanting real estate exposure without property hassles
- Retirees seeking steady cash flow
- Stock market investors looking for portfolio diversification
Final Thoughts
If you want passive income, low risk, and easy entry into real estate, REITs are a game-changer. They offer the best of both worlds—real estate and stock market benefits—without the burdens of ownership.