The days of having to save for years to buy a flat, taking out home loans, and waiting for the right moment to invest in real estate are over. Now, with Real Estate Investment Trusts (REITs), everyday investors can easily get a piece of India’s growing real estate market and its potential for future growth. As the market changes, investors are also looking for new ways to invest their money.
As part of our ongoing series about REITs to help you understand them better, this blog will look at the different types of SEBI-listed REITs that are available for investors in India right now. We will explain what makes each type of REIT unique and guide you on how and where to buy them. But first, let’s take a quick look at the key moment that allowed everyday investors like us to invest in high-quality real estate through REITs.
How did REITs become regulated from unregulated fractional real estate investments?
For a long time, investing in real estate in India mostly meant buying properties directly or joining informal groups where several people would own a share of a property. In the case of REITs, fractional ownership means each investor owns a part of the property instead of the whole thing.
Although these investment setups were popular, they didn’t have proper rules, which made investors vulnerable to problems like delays in selling their shares. To address these issues, the Securities and Exchange Board of India (SEBI) created regulations for Real Estate Investment Trusts (REITs) in 2014. These regulations laid out clear guidelines about owning assets, sharing income, and protecting investors’ rights.
How SEBI’s rules changed the REITs landscape:
- SEBI set a clear framework for how REITs should operate.
- They made it necessary for REITs to be transparent about their assets, so investors can see what they are investing in.
- SEBI helped ensure that investors receive consistent income from their investments.
- REITs are mandatorily required to share important information with investors regularly.
- SEBI’s rules improved the ability for investors to buy and sell their REIT investments easily.
These changes increased trust in REITs and allowed smaller investors to invest in real estate projects with greater confidence. In India, anyone can set up a REIT as long as they follow SEBI’s rules and meet certain requirements.
Also Read: History of REITs in India
Different types of REITs in India
REITs can be classified into two categories: by how they invest (based on their investment structures) and by what kind of properties they own.
REITs classification as per their investment strategies:
- Equity REITs: Own income-generating physical properties.
- Mortgage REITs: Invest in real estate loans and earn interest.
- Hybrid REITs: Invest in both equity and real estate-related debt or mortgages.
While the Indian regulatory framework allows for mortgage and hybrid REITs, all listed REITs so far are equity REITs, mainly focusing on owning and leasing commercial properties to companies.
Classification of REITs as per the properties they own:
- Office REITs: Invest in commercial real estate properties like office buildings. It generates income by leasing out long-term to corporate tenants.
- Retail REITs: Invest in retail properties like shopping centres. Its income depends on consumer consumption.
- Industrial REITs: Focus on warehouses, distribution centres, and benefit from e-commerce and supply chain growth.
- Residential REITs: Focus on rental housing and target market with strong urban rental demand.
- Hospitality REITs: Own hotels and resorts; income is variable and linked to tourism and business travel.
- Healthcare REITs: Invest in hospitals, senior living facilities, and medical offices; often have long leases and stable tenants.
At present, only office REITs and retail REITs are publicly listed and active in the Indian market.
The SEBI-listed REITs in India (2025)
As of 2025, India has five REITs listed by SEBI. All of them are equity REITs, but they invest in different types of properties.
Source: Indian REITs Association (IRA); Company websites
Scroll right to view full table –>
How to invest in REITs in India
Buying a REIT in India is similar to buying a regular stock. You don’t need a special license or follow a complicated process. Just make sure you complete your Know Your Customer(KYC) verification, which you can do using your Aadhaar card, PAN card, or other identity proof.
Key requirements to invest in REITs in India
- A demat account to hold your REIT units.
- A trading account with a SEBI-registered broker to place your orders.
You can buy REITs in two ways:
- Primary Market (During a public issues or IPO): When a new REIT is launched, you can invest directly in the primary market.
- Secondary Market (On stock exchanges): Once a REIT is listed on exchanges like the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE), buying it is even more straightforward.
Step 1: You must log in to your broker platform.
Step 2: Search for the REIT you want to buy.
Step 3: Place a buy order for the number of units you want.
The units will get credited to your demat, making you an REIT investor officially.
Other ways to invest in REITs in India:
You can also invest in to REITs indirectly through:
- Mutual funds or ETFs that include listed REITs in their portfolios.
- International funds that focus on global REITs.
How to track your REIT’s performance on an ongoing basis?
1. Review their regular disclosures.
SEBI has mandated regular sharing of detailed quarterly, half-yearly, and annual updates. These financial reports include occupancy rates, rental income, lease renewals, and any new acquisitions or sales. Through these reports, you can gauge the performance of the underlying REITs without complicated financial jargon.
2. Track the market performance just like a stock
Since REIT units are traded on the stock exchanges, monitoring them daily through the app is easier. Trading metrics like price movements, trading volumes, and changes in distribution yield can help you perceive the REIT’s valuation and growth prospects over time. You can also compare its performance with the benchmark index, Nifty REITs & InvITs Index, to track overall sector performance and sentiment.
3. Track real estate-specific metrics
Focus on real estate-specific indicators to get a full picture.
- Funds From Operations (FFO): Reflects its true earning power from its underlying properties after removing expenses like depreciation
- Adjusted FFO (AFFO): A realistic measure showing available cash for payout
- Net Asset Value (NAV): Tells you if the REIT is fairly priced by comparing its unit price with the underlying value of its properties
- Occupancy rate and WALE: A good value hints at rental stability and lower vacancy risk
- Dividend per share (DPS): Tells you how much income you are actually earning from each unit
- Payout ratio: Shows how much of its AFFO a REIT is actually distributing
4. Refer to their investor presentations
Every REIT conducts investor presentations, revealing their management strategy, lease renewal outlook, property pipeline, and long-term growth plan. This provides a snapshot of the REIT’s future outlook.
5. Keep an eye on the broader trends
Broader factors, like changes in urban spending habits, interest rates, shifts in office demand, or new regulations, can affect REITs’ valuations. Therefore, you must keep an eye on these trends to spot opportunities before.
To see how REITs can fit into your investment portfolio, consider consulting with a Qualified Financial Advisor (QFA). They can help you understand your financial goals, evaluate your risk tolerance, and determine how REITs may work within your overall investment strategy.
Conclusion
The Indian REITs market is still young, but it has opened up opportunities that were once only for big investors. The SEBI-listed REITs available now allow you to access potential long-term value and benefit from a transparent regulatory system. With just a few clicks, you can invest in high-quality commercial properties and diversified rental portfolios without the hassle of owning or managing real estate yourself.
