Top REITs in India

Real Estate Investment Trusts (REITs) were first conceptualised in the United States during the 1960s to democratise access to real estate investment. REITs enable individual investors to participate in large-scale, income-generating properties without the burden of directly purchasing or managing them. The model quickly spread worldwide, and India introduced its regulatory framework for REITs in 2014 through SEBI. REITs function similarly to mutual funds by pooling capital from multiple investors to invest in commercial real estate. In return, investors receive income in the form of dividends and interest, along with potential capital appreciation. Today, REITs in India invest in high-quality income-producing assets such as office spaces, residential complexes, and healthcare facilities, offering both institutional and retail investors a structured avenue to tap into the country’s growing real estate market, projected to reach $1 trillion by 2030.

Overview of the Top REIT Stocks

Here’s a concise look at the leading REIT stocks in India:

Nexus Select Trust
Nexus Select Trust focuses on retail real estate, managing premium malls across India. Its diversified tenant base and prime locations drive performance. Nexus Select Trust (NST) is the owner of India's leading consumption centre platform of high-quality assets that serve as essential consumption infrastructure and is the first publicly listed consumption centre REIT in India.

Mindspace Business Parks
Mindspace REIT is a Real Estate Investment Trust listed in India under the SEBI Real Estate Investment Trust Regulations, 2014. Mindspace REIT primarily holds interests in rental-yielding commercial real estate assets (Grade-A office portfolio). It is incorporated as a registered Trust and listed through a public issue of units. The sponsor of Mindspace REIT is the K Raheja Corp Group.

Embassy Office Parks
Embassy Office Parks REIT owns, operates and invests in rent or income-generating real estate and related assets in India. It is India's first publicly listed REIT and is Asia's largest official REIT by area. It is a Real Estate Investment Trust (REIT) that owns, operates or finances income-producing real estate. It gives all investors access to the benefits of real estate investment with the advantage of investing in publicly traded units.
As per Indian regulations, the REIT must distribute at least 90% of its cash flows to the unitholders of the trust.

Brookfield India Real Estate Trust
Brookfield India REIT owns commercial office assets in key business hubs. It delivers excellent operational efficiency, Additionally, it is set for a dramatic earnings turnaround. Brookfield India Real Estate Trust REIT is an India-based commercial real estate vehicle. The investment trust's portfolio consists of campus-format office parks. Its commercial assets are located in Mumbai, Gurgaon, Noida and Kolkata.

Conclusion

In India, real estate investment trusts may give investors a consistent flow of income along with the advantages of diversification.  Aside from this, starting to invest in REITs doesn't require a significant sum of money.  Therefore, you might begin investing in REITs if you wish to diversify your portfolio.