The introduction of REITs(Real Estate Investment Trusts) are all set to open up a lot of opportunities for investors, ensuring a lot of opportunities to even small investors to make safe, secure and promising investments into the Indian real estate market.

THE BEST THING ABOUT REITs

The best thing about REITs is that investors can start small – even as small a sum as Rs. 2 lac and start receiving units in exchange. As the REIT platform has already been approved by the SEBI (Securities and Exchange Board of India) it will start working on the concept of mutual funds, assimilating the funds from all investors from across the country. Whatever money is collected from the REIT funds will be invested in commercial real estate properties subsequently. Every REIT will have to be registered via an IPO or initial public offering. REITs will then invest directly in lucrative properties like residential units, warehouses, shopping malls, hotels and others. REIT trusts will be listed with stock exchanges and they would be created as trusts.

SOME ADVANTAGES OF REITS

• 90% of Income dividends are distributable at least twice in a year
• The full valuation of REIT will be showcased on an annual basis and will also be updated on a half-yearly basis.
• The risk is lower than some investments as around 80% of the assets will have to be invested into projects that are completed and are revenue-generating.

REITs are investment conduits that can be looked upon by investors.