Indian Real Estate

REIT Ways to Invest in India


30, January 2026

With REIT in Place, Your Real Estate Investment is Safe and Secured!

REITs are investments similar to mutual funds. A REIT primarily aims to acquire real estate properties. It may be by leasing them out and managing them to ensure a consistent yield as part of an investment portfolio.

Real Estate is a key contributor to the expanding Indian Economy. It has a significant impact on the entire economy. A Real Estate Investment Trust (REIT) is a trust type deployed to hold, manage and invest in real estate assets. These may include under-construction properties and even completed properties which are used to generate income. These are commercial properties such as offices, warehouses, shopping centres, etc... The regulations include -hospitals, hotels, and convention centres as part of composite real estate projects that generate rents or income.

Industry parks, and SEZs (Special Economic Zones) have also been added. SEZ has become and crucial medium for REIT ways of investment.

A REIT's primary aim is to acquire real estate properties, which may be achieved by renting properties and even reselling them. Significantly, developers hold the real estate assets in Special Purpose Vehicles (SPVs). A REIT investment ensures the pooling of various assets, under a single SEBI-regulatory trust.

Ranav Tranquil Haven

REIT Ways to Investment in India

The city's well-planned infrastructure setup helps attract ongoing foreign investments and the capital base essential for economic sustainable growth, across industries. Demand for commercial space rises due to the rise in the real estate sector's expansion and corporate environmental developments.

At a specific era, the demand for the real estate sector drastically fell, due to a lack of investors to invest in the industry -demanding new sources of funding. Instantly, REITs, or real estate investment trust was brought into the scene to overcome the financial deficiency.

REIT ways to invest were first introduced by SEBI in 2007. Many investment regulations were introduced to drive the vehicle, increasing its popularity. This regulatory authority ensures efficient and smooth operations of these investment funds. The SEBI is a regulatory body regulating REIT companies listed on India Stock exchanges.

What is SEZ?

Special Economic Zones (SEZ) in India are locations where local businesses can awarded incentives. SEZs are often provided with competitive infrastructures, tax incentives, duty-free exports and other business-friendly regulatory policies. As a result, many foreign investors and exports, prefer to invest in SEZs. The current SEZ Act was passed in 2006 to foster export hubs, and to enhance domestic manufacturing.

However, later the minimum alternate tax was imposed. The sunset clause for removing tax incentives was also deployed, which resulted in the loss of their lustre.

The Indian Government proposed the development of the Enterprise and Service Hubs (DESH) Bill to replace the SEZ Act 2005. The main purpose of the DESH is to "enable and expand establishment, including maintenance of Development Hubs. These may include existing Economic Zones, as communities for economic promotional activities and empowering people with jobs. Uniting global supplies and value chains. Increase the production and export aims, and encourage investment in R&D by improving infrastructure facilities.

Even though pent-up leasing demand is flagged high, the work from the workplace after the pandemic has been slower than anticipated. The concerns regarding the slowly rising demands are likely to weigh in the short term. Due to the high exposure of SEZs in the REIT ways of investment portfolio, the DESH (new SEZ bill) advancement remains crucial to increasing occupancy.

SEZ TAX Benefits

The major tax benefits available to SEZ developers are mentioned below:

  • Customs/excise tax exemption for creating SEZs for authorised operations approved by the BOA.

  • According to Section 80-IAB of the Income Tax Act, income derived from the business of developing the SEZ is exempted from income tax for over ten years. Starting in 15 years. (On April 1, 2017 - The sunset clause for developers went into effect)

  • Exclusion from the Central-Sales-TAX (CTS)

  • Exemption from Service-Tax (Second Schedule and Section 7, 26 of the SEZ Act)

  • According to the 2017 IGST Act, supplies to SEZ are zero rating.

Increasing Housing Demands from the Development of SEZs

As per studies until - 30th September 2022, there are 5,634 approved SEZ units in India. More than two million professionals work in SEZs Pan India. The growth of cities such as -Bangalore, NCR, Chennai, Hyderabad, and Pune is a good indicator of the multiplier effect of job creation based on -housing demands, retail consumption, and in turn the economy.

Meanwhile, manufacturing-based SEZs have played a key role in generating demand for affordable housing.

Conclusion:

REITs is key contributor is the economic growth in India. Real Estate Investment Trust was introduced to regulate investments made on under-construction properties, and business properties such as hotels, hospitals, and convention centres. These property types can even be rented to generate income.

SEZs are emerging as an important medium for REIT investments. Developers today are also able to invest in assets under a single-regulated trust.

SEZs in India are of many types including -Sector-Specific SEZs, Multi-product SEZs, and SEZs in a port or Airport, for free trade and warehousing.

SEZ also has numerous Tax benefits for local and foreign businesses, these also create employment opportunities through exports.

FAQs

Q. How Can I invest in REITs?

A. You can invest in a publicly traded REIT ways of investment. You can buy shares of a non-traded through a broker that participates in the non-traded REIT's offering. You can also invest in shares in a REIT mutual fund or REIT exchange-traded fund.

Q. Is REIT a good investment for beginners?

A. REITs are a wonderful way to diversify your investments, gain exposure to the real estate industry market, and generate income. Before investing it is essential to thoroughly understand the industry's philosophy and its financial position looks like.

Q. What is the minimum investment in REIT ways of investment in India?

A. INR 10,000 to INR 15,000 is the minimum to invest in REIT India.

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