Among the most reliable investing choices available in India is real estate. Not everyone, meantime, has the means to purchase real estate. REITs then come in really handy. Finding the greatest REIT might be a wise action if you want consistent income and real estate exposure without purchasing land or homes.
Describes a REIT
Real Estate Investment Trust is abbreviated REIT. Owning and running income-producing assets like hotels, malls, warehouses, and offices, this corporation is. Investing in a REIT makes you a part-owner of the real estate and profits from the rent paid.
Simply said, REITs allow you to make modest investments in large assets.
Why Ought Indians to Give REITs Some Thought?
REITs are drawing appeal in India for the following reasons:
- Dues provide you consistent revenue.
- It’s safer than direct real estate investment.
- You could start with little amounts—as little as ₹5,000.
- It’s listed on the stock exchange so you may quickly purchase and sell.
- Ideal for individuals seeking real estate exposure without actually purchasing any.
Which Indian REIT Would Be Most Appropriate for You?
India only boasts a few listed REITs right now. Consult these leading names to identify the ideal REIT:
- Parks maintained by the Embassy Office: The first REIT in India, concentrated on commercial office buildings.
- Mindspace Business Parks REIT: Maintains offices in Mumbai, Pune, and Hyderabad.
- Newer yet rapidly expanding, Brookfield India Real Estate Trust: Has quality properties in major cities.
Every one of these has special characteristics. Depending on objectives, what would be the ideal REIT for one individual might not be the same for another.
Selecting the Best REIT for Your Situation
View these considerations before making investments:
- Sites of the residences.
- Residential occupancy rate and rental revenue.
- Dividend Payback History.
- Value of assets and projected expansion.
- Team management and expertise.
If your objective is consistent income, find out how frequently and in what amount the REIT pays. See where the REIT is making long-term investments to guide your own.
REIT Investing: How to Do It
Regular stock trading accounts allow you to trade in the top REIT. Just find the REIT name and purchase shares among other units. The units show on BSE and NSE.
Last Words
Modern means for Indian investors to gain real estate benefits without purchasing real estate are REITs. The ideal REIT may provide consistent income and long-term value if selected sensibly. If you are new to this field, do your homework, weigh your alternatives, and start small.