REITs Explained: How Small Investors Can Now Enter Real Estate With Just Rs 500
Investing in real estate no longer requires crores of rupees. Thanks to Real Estate Investment Trusts (REITs), retail investors can now get exposure to commercial real estate starting at just Rs 500 per unit.
India currently has three listed REITs: Embassy REIT, Mindspace Business Parks REIT, and Nexus Select Trust. These instruments invest in Grade A commercial properties and shopping malls, offering an average dividend yield of 6 to 8 percent annually.
SEBI recently revised the minimum investment limit for REITs, bringing it down to Rs 500 to encourage wider participation. Financial advisors suggest allocating 10 to 15 percent of one investment portfolio to REITs for stable passive income and real estate diversification without the hassle of property management.
