Indian Real Estate

Exploring REIT Investing and Property Shares in the Indian Real Estate


30, January 2026

Hey, Fellow Readers!

Real estates have however for many years formed a very important sector in across the world economy. The real estate industry in India has been developing rather fast in the recent decades due to the increase of middle class, urbanization rate and government support. Nevertheless, unlike this type of increase, the real estate investments for a long time were closely associated with the ownership of physical real estate, which calls for substantial investment capital.

Recently, people have found that special REITs and property shares are more flexible and efficient investment tools for real estate than traditional purchasing because they do not require a big amount of money and owning rights to a property.

In the future blog posts, readers will learn about the advantages and prospects of investing in REITs, study the topic of property shares as the investment type, and review developments in the Indian real estate market.

What is REIT Investing?

Real Estate Investment Trusts (REITs) are relatively new forms of investment vehicles that have changed the manner people invest in real estate. Real estate investment trusts commonly referred to as REITs are companies involved in the management or financing of income generating real estate including residential, commercial, retail, and industrial.

REIT is a company that owns and manages income-generating properties that can be purchased by individuals as stocks so that one can enjoy returns from real estate investment without having to steam through the process of owning property.

REITs are also meant to offer investors an opportunity to invest in real estate while enjoying features such as liquidity, diversification and passive income. Thus, the most common type of REITs usually sends out most of its generated income to shareholders as dividends making it a good choice for income investors. These trusts are also quoted in the major stock exchange markets, and therefore they have certain amount of marketability than direct real estate investments.

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The on getting into REIT Investing in India

India’s real estate business has been quite buoyant over the past few years; however, low availability and high prices have always been a problem for the retail segment. This is where REIT investing has gained traction. In 2019, India’s first publicly listed REIT, Embassy Office Parks REIT, made its debut on the Bombay Stock Exchange, paving the way for other REITs to enter the market. Since then, the popularity of REIT investing has surged, with more REITs entering the Indian market and offering exposure to premium commercial real estate properties.

As a result, the interest of investors who have no time to and/or are not interested in dealing directly with the properties in the Indian real estate industry but stand to gain from it through the offerings of REITs. Investing in REITs delivers enhanced access to quality and prime commercial complexes such as office complex or buildings, retail outlets and industries.

Advantages of REIT Investment in India

Real Estate Investment Opportunities through High-Quality Real Estate Assets

Indian REITs are targeted towards the superior end of commercial real estate, which includes offices seized by multinationals and large retail stores.

Such properties mainly present an assured, business like income from rental receipts. In this way, through investments in REITs, ordinary shareholders can participate in the ownership of such premium-quality real estate without having to make large equity investments or owning the buildings directly.

Diversification

On this basis, REITs provide investors with diversified investments in properties across locations or types of properties. This is unlike a property where investors have to depend on that particular property to generate the results of the investment for them. Such diversification is less risky and gives considerably more stable revenues.

Liquidity

Unlike the direct investment in the real estate market which may take a period of one or two years and even up to three years to sell, REITs operates like stocks which are traded on the stock markets. REIT shares can be purchased and sold by investors at any given time provided it is within the business hours unlike other property related investments.

Attractive Income Potential

One of the key advantages of REIT investing is the potential for regular income. Since REITs are required to distribute a large portion of their taxable income as dividends (usually around 90%), they can provide investors with a consistent stream of passive income. This makes REITs an appealing choice for those seeking income-generating investments.

Low Entry Barriers

Traditional real estate investments often require a significant amount of capital to purchase even a single property. With REITs, investors can start with much smaller amounts, making them an accessible option for retail investors who want exposure to the real estate market but lack the financial resources for direct property ownership.

A Gateway to Real Estate Investment

Property shares are another avenue for investors to gain exposure to the real estate sector. Unlike REITs, which invest in a portfolio of properties, property shares involve owning shares in a company that directly owns and operates specific properties. These properties could be residential, commercial, or industrial real estate.

Property shares can be listed on stock exchanges or traded privately, depending on the structure of the company. Investing in property shares offers a way to profit from the growth of the underlying real estate assets, with the added benefit of having the shares traded on public markets, making them more liquid than direct property investments.

Benefits of Investing in Property Shares

Exposure to Individual Properties

One of the key benefits of property shares is the ability to invest in individual real estate projects. Unlike REITs, which offer exposure to a diversified portfolio, property shares allow investors to concentrate their investments in specific properties or property sectors.

For example, an investor might choose to buy shares in a company that owns office buildings in central business districts or a residential property company focusing on luxury apartments.

Potential for Capital Appreciation

Investing in property shares can provide the potential for capital appreciation if the underlying properties increase in value. This makes property shares a suitable investment for those looking for long-term growth in addition to regular income.

Liquidity

Similar to REITs, property shares listed on stock exchanges offer liquidity. Investors can buy and sell shares whenever the market is open, unlike traditional property investments, which may require months to liquidate.

Diversification

Property shares can also offer diversification across different real estate segments, depending on the type of properties the company owns. This can reduce risk while providing exposure to various areas of the real estate market.

The Indian Real Estate Industry and Investment Opportunities

India’s real estate industry has witnessed significant growth in recent years. The residential sector, driven by increasing demand from urban populations, and the commercial sector, supported by the growing IT and service industries, have been key growth drivers. The Indian government’s initiatives to boost affordable housing and create smart cities are expected to fuel further growth in the sector.

For investors looking to take advantage of India’s growing real estate market, both REIT investing and property shares offer viable options. In particular, REITs are gaining popularity as they provide access to the high-growth commercial real estate sector in major Indian cities such as Mumbai, Bengaluru, Delhi, and Hyderabad. Additionally, with the government’s focus on infrastructure development and affordable housing, the potential for growth in India’s real estate sector remains strong.

Policies, population, generation Y, generation Urbanization, Internet and other factors lie as follows to affect the future of real estate investment in India. Implementing technology for enhancing operational effectiveness is becoming a norm for real estate companies, along with the growing trend towards global, smart, green buildings. Future prospects based on such trends are expected to sustain long term growth of the real estate market in India.

Conclusion

With the increasing size of the India based real estate sector, the REIT and property shares investments are more acceptable among both retail and institutional investors. In particular, REITs provide an opportunity to invest in high-quality, quality commercial real estate without onerous investment thresholds, and with the expectation of stable revenues. Property shares on the other hand offer an avenue where investors can select to invest in specific property and get capital gains.

Real estate investors should diversify their portfolios by investing in REITs and also shares in property companies. With India’s real estate sector set to expand further, these investment vehicles provide an excellent opportunity to tap into the future growth of one of the world’s fastest-growing economies.
Whether you’re looking for passive income, long-term growth, or diversification, REIT investing and property shares offer compelling options for real estate investment in 2025 and beyond.

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