Overview of REITs and InvITs
What are REITs and InvITs?
REITs and InvITs are acronyms for “Real Estate Investment Trusts” and “Infrastructure Investment Trusts” respectively. These financial vehicles offer instruments called REIT/InvIT units (and not named as equity shares). REITs and some InvITs are listed on the NSE and BSE stock exchanges now and thus available to all Indian retail investors. The listed units can now be bought and sold on the exchanges at a lot size of even 1 unit, making them within easy reach of any retail investor.
The manner of financialization of real estate assets make REITs very unique. They give investors an exposure to both types of investments– capital market investment coupled with real estate investment. Naturally, they will replicate returns and risks features of both markets. Although they are extremely lucrative, only a thorough understanding will help investors gain from this new investment avenue and we are here to help you do just that!
How to invest in REITs and InvITs?
REITs and InvITs units can be bought and sold, just like normal equity stocks, through a trading account. Not only the institutional investors, but also any retail investor can buy these instruments now in India. As already stated, the listed units can now be bought and sold on the exchanges at a lot size of even 1 unit. This gives investors a chance to gain exposure in real estate assets with minimal effort and very less capital but with similar benefits. Currently REITs in India hold commercial real estate whereas InvITs have infrastructure assets like transmission lines, roads etc. in their investment portfolios. The following REITs and InvITs are listed in the stock exchanges of India (both NSE and BSE)
A summary of REITs & InvITs listed in India
The table above shows all listed REITs and InvITs in India.
A note on some InvITs that are present but not listed here: InvITs such as INDINFRAVIT Trust, Shrem InvIT, etc are SEBI registered and stock-exchange listed InvITs, but with no investment by retail investors. The SEBI Website contains details of all InvITs currently in India, listed or unlisted, public or private.
Useful Links, REIT and InvIT Official Websites
You may see the following links for listed REITs and InvITs available to Indian Retail investors:
Publicly traded REITs in India (Official website links):
https://www.embassyofficeparks.com/
https://www.mindspacereit.com/
https://www.brookfieldindiareit.in/
https://www.nexusselecttrust.com/