Unlocking Real Estate Wealth: A Deep Dive into REITs and My Journey as an Investor
Hey there, fellow wealth builders!
If you're anything like me—balancing a demanding career in eye care with the thrill of growing your investment portfolio—you know how challenging it can be to invest in real estate without getting buried under paperwork, loans, and tenant headaches.
That’s exactly where REITs (Real Estate Investment Trusts) come in.
I’ve been tracking and investing in REITs for several years now, and they’ve quietly become one of my favorite ways to gain real estate exposure without direct ownership stress. In this guide, we’ll break down what REITs are, how they work, the types available, India’s growing REIT ecosystem, how to invest, the pros and cons, and my personal investing journey—all in plain, practical language.
Let’s get started.
What Exactly Is a REIT?
Think of a REIT as a mutual fund for real estate.
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate assets such as:
Office buildings
Shopping malls
Warehouses and logistics parks
Commercial complexes
Instead of buying an entire property yourself, you invest small amounts and own units of a professionally managed real estate portfolio.
Why REITs Exist
Introduced in the US in 1960 to democratize real estate investing
In India, regulated by SEBI
Mandatory rule: at least 90% of income must be distributed to investors
This means steady dividends without dealing with tenants, maintenance, or property taxes.
How Does a REIT Actually Work?
REITs operate on a simple but powerful model:
Step-by-Step Flow
Capital Raising: REIT issues units to investors via IPO or secondary market
Property Ownership: Funds are used to buy or develop income-producing properties
Income Generation: Rental income flows in monthly or quarterly
Distribution: Minimum 90% of net distributable cash is paid to investors
Growth: Remaining funds are used for expansion, acquisitions, or debt reduction
What You Earn
Regular dividend income (usually quarterly)
Capital appreciation if unit prices rise
Pro tip: Look for REITs with occupancy above 90% and stable tenant profiles.
Publicly Traded vs. Private REITs: What’s the Difference?
Not all REITs operate the same way. The biggest divide is between public and private REITs.
Publicly Traded REITs
Open to all retail investors via a demat account
Minimum investment around ₹10,000–₹15,000
Units trade daily on NSE/BSE
Fully regulated by SEBI with high transparency
Market-driven prices with easy entry and exit
Lower fees and transaction costs
Private REITs
Restricted to HNIs and accredited investors
High minimum investments (₹10–50 lakhs or more)
Lock-in periods with limited liquidity
Lower regulatory oversight
Potentially higher yields, but capital is stuck longer
Higher management fees (typically 1–2%)
My preference: Public REITs—liquidity matters when juggling a busy career.
The Current Pulse of REITs in India (2025 Update)
India’s REIT market is finally hitting its stride.
Listed REITs in India
Embassy Office Parks REIT (2019)
Mindspace Business Parks REIT (2020)
Brookfield India Real Estate Trust (2021)
Nexus Select Trust (2023 – India’s first retail REIT)
Knowledge Realty Trust (DLF-backed) – expected listing by late 2025
Market Snapshot
Total AUM: ~₹2.25 lakh crore
Market cap: Over ₹1.5 lakh crore
Average occupancy: 85–90%
Q3 FY25 distributions: ₹1,505 crore
Why Retail REITs Are Interesting
Nexus owns 18+ malls across 14 cities
Strong tailwinds from Tier-2 city consumption
Retail REIT market projected to reach ₹60,000–80,000 crore by 2030
India’s real estate story is no longer just offices—retail and mixed-use assets are gaining momentum.
How to Start Investing in Public REITs (Step-by-Step)
Getting started is surprisingly simple.
Step 1: Open a Demat Account
Platforms like Zerodha, Groww, Angel One
Minimal setup cost
Step 2: Research the REIT
Yield target: 7–9%
Debt ratio: Preferably below 40%
Occupancy rate: Above 85–90%
Check SEBI filings, investor presentations
Step 3: Buy Units
Search the REIT ticker during market hours
Place market or limit orders
Entry possible from ~₹15,000
Step 4: Hold and Monitor
Units credited in T+2 days
Dividends paid quarterly
Track performance via broker app
Anyone above 18 with KYC completed can invest.
Advantages of REIT Investing
REITs offer a powerful mix of income and diversification.
Key Benefits
Steady Income: 7–10% dividend yields
Mandatory Payouts: 90% distribution rule
Diversification: Low correlation with equities
Liquidity: Buy and sell like stocks
Professional Management: Zero operational hassle
Inflation Hedge: Rentals tend to rise over time
For me, REITs sit comfortably between equity growth and fixed-income stability.
Disadvantages and Risks to Watch
REITs aren’t risk-free.
Potential Downsides
Interest Rate Sensitivity: Rising rates hurt valuations
Market Volatility: Unit prices fluctuate like stocks
Sector Risks:
Office REITs face remote-work challenges
Retail REITs face e-commerce competition
Taxation:
Dividends taxed as per income slab
LTCG taxed at 10% beyond ₹1 lakh
Fees: Management and trustee fees reduce returns
Bottom line: REITs reward informed investors, not blind buyers.
My Personal REIT Journey: What I’ve Learned
I entered REITs in 2020, starting with Mindspace, using ₹50,000 from surplus SIP savings.
Why REITs Worked for Me
Long hospital hours meant no time for active property management
REIT dividends helped stabilize my portfolio during equity volatility
Embassy Office Parks offered predictable office income
Nexus Select added retail growth exposure post-COVID
My Strategy Today
Focus on quality assets and strong sponsors
Reinvest dividends partially for compounding
Balance office and retail exposure
Avoid chasing yields blindly
REITs didn’t make me rich overnight—but they made my portfolio calmer.
Final Thoughts: Is a REIT Right for You?
REITs aren’t shortcuts to wealth, but they are smart, structured tools for long-term investors.
With India’s REIT market expanding rapidly and retail participation still low, this asset class offers income, diversification, and growth potential—especially for professionals with limited time.
Start small. Stay diversified. Let the rents work for you.
What’s your pick—office REITs or retail REITs?
Drop your thoughts below, and don’t forget your annual eye check-up—clear vision matters in investing too
Dr. Shivam Sood
Eye Surgeon | Investor | Lifelong Learner