{"id":12238,"date":"2026-05-22T13:39:13","date_gmt":"2026-05-22T13:39:13","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/reit\/"},"modified":"2026-05-22T13:39:13","modified_gmt":"2026-05-22T13:39:13","slug":"reit","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/reit\/","title":{"rendered":"REIT"},"content":{"rendered":"<p>A Real Estate Investment Trust, or <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/reit\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>REIT<\/a>, is a company that owns, operates or finances income-producing real estate. By buying units of a listed REIT, investors gain exposure to commercial real estate &mdash; office buildings, malls, warehouses &mdash; without buying property themselves. India has a small but growing REIT market with units traded on <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>NSE<\/a> and <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>BSE<\/a>.<\/p>\n<div><strong>Key takeaways:<\/strong>\n<ul>\n<li>REITs allow fractional ownership of large-scale commercial real estate.<\/li>\n<li>Listed on Indian <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stock-exchange\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">stock exchange<\/a>s since 2019.<\/li>\n<li>Must distribute at least 90% of net distributable <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/cash-flow\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">cash flow<\/a> to unit-holders.<\/li>\n<li>Income mix: rental <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/yield\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>yield<\/a>s + capital appreciation.<\/li>\n<li><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Tax<\/a> treatment varies by component (rental, interest, <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/dividend\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">dividend<\/a>).<\/li>\n<\/ul>\n<\/div>\n<h2 id=\"how-reits-work-in-india\">How REITs work in India<\/h2>\n<p><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/sebi\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>SEBI<\/a> introduced REIT regulations in 2014. The first REIT &mdash; Embassy Office Parks &mdash; listed in 2019. Each REIT is sponsored by a real estate developer or institutional player who transfers commercial <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/assets\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>assets<\/a> to a trust. The trust issues units that trade on exchanges. Investors buying units own a proportional share of the income from the underlying properties.<\/p>\n<h2 id=\"what-reits-own\">What REITs own<\/h2>\n<ul>\n<li>Grade A office buildings (most common).<\/li>\n<li>Malls and retail real estate.<\/li>\n<li>Warehouses and logistics parks.<\/li>\n<li>IT parks and SEZs.<\/li>\n<li>Specialised assets (data centers, hotels in some global REITs).<\/li>\n<\/ul>\n<h2 id=\"reit-distributions-and-yields\">REIT distributions and yields<\/h2>\n<p>Indian REITs typically distribute quarterly. Distributions consist of:<\/p>\n<ul>\n<li>Rental income (taxable in your hands at slab rate).<\/li>\n<li>Interest income (taxable at slab rate).<\/li>\n<li>Dividend income (taxable at slab rate from 2023 onwards in most cases).<\/li>\n<li>Return of capital (not taxed when distributed; reduces cost basis).<\/li>\n<\/ul>\n<p>Yields on Indian REITs have historically been 6&#x2013;8% net of <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/expense\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">expenses<\/a>.<\/p>\n<h2 id=\"listed-reits-in-india-as-of-recent-years\">Listed REITs in India (as of recent years)<\/h2>\n<table>\n<tr>\n<th>REIT<\/th>\n<th>Asset class<\/th>\n<\/tr>\n<tr>\n<td>Embassy Office Parks REIT<\/td>\n<td>Pan-India office<\/td>\n<\/tr>\n<tr>\n<td>Mindspace Business Parks REIT<\/td>\n<td>Office (Mumbai, Hyderabad)<\/td>\n<\/tr>\n<tr>\n<td>Brookfield India REIT<\/td>\n<td>Office<\/td>\n<\/tr>\n<tr>\n<td>Nexus Select Trust<\/td>\n<td>Retail malls<\/td>\n<\/tr>\n<\/table>\n<h2 id=\"benefits-for-retail-investors\">Benefits for retail investors<\/h2>\n<ul>\n<li><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/diversification\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Diversification<\/a> &#x2014; exposure to commercial real estate without large capital.<\/li>\n<li><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/liquidity\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Liquidity<\/a> &#x2014; units trade on exchange; can be sold any time.<\/li>\n<li>Regular cash flow &#x2014; quarterly distributions.<\/li>\n<li>Professional management &#x2014; institutional landlords run the underlying assets.<\/li>\n<\/ul>\n<h2 id=\"risks-to-watch\">Risks to watch<\/h2>\n<ul>\n<li>Interest-rate sensitivity &#x2014; rising rates can pressure REIT yields and prices.<\/li>\n<li>Occupancy risk &#x2014; vacancies hurt rental income.<\/li>\n<li>Concentration risk &mdash; many Indian REITs are tilted to IT-<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/sector\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>sector<\/a> tenants.<\/li>\n<li>Tax complexity &#x2014; multi-bucket distributions complicate reporting.<\/li>\n<\/ul>\n<h2 id=\"frequently-asked-questions\">Frequently asked questions<\/h2>\n<div>\n<h3 id=\"how-do-i-buy-reit-units\">How do I buy REIT units?<\/h3>\n<p>Like any other stock &mdash; via your <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/broker\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>broker<\/a>. They are listed on NSE and BSE.<\/p>\n<h3 id=\"is-there-a-minimum-investment\">Is there a minimum investment?<\/h3>\n<p>After SEBI&#x2019;s 2021 change, you can invest with as little as &#x20B9;10,000&#x2013;15,000 (one or a few units).<\/p>\n<h3 id=\"are-reits-taxed-like-property\">Are REITs taxed like property?<\/h3>\n<p>No. They are listed securities; tax treatment is per the distribution mix.<\/p>\n<h3 id=\"does-lemonn-support-reits\">Does Lemonn support REITs?<\/h3>\n<p>Yes. REIT units trade like any other listed security on Lemonn.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A Real Estate Investment Trust, or REIT, is a company that owns, operates or finances income-producing real estate. By buying units of a listed REIT, investors gain exposure to commercial real estate &#x2014; office buildings, malls, warehouses &#x2014; without buying property themselves. India has a small but growing REIT market with units traded on NSE [&#x2026;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-12238","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Ashutosh","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"A Real Estate Investment Trust, or REIT, is a company that owns, operates or finances income-producing real estate. By buying units of a listed REIT, investors gain exposure to commercial real estate &#x2014; office buildings, malls, warehouses &#x2014; without buying property themselves. India has a small but growing REIT market with units traded on NSE&hellip;","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12238\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=12238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}