If you are looking for some good investment options, have you considered REIT yet? Wondering what is REIT? REIT stands for Real Estate Investment Trust, which are businesses that own, manage, and fund real estate that generates income. One might own or finance real estate through REITs in the same way that one may invest in other sectors of the economy, that is by purchasing shares. It is a fantastic investment choice for individuals who lack the capital to own commercial real estate, buildings, or land.
So, if you find REIT to be a great investment option, continue reading this blog. Here we bring you some of the best REIT investments in India.
3 Popular REIT Investments in India —
1. Embassy Office Parks REIT
Embassy Office Parks REIT is a real estate investment trust based in India. The business was established in 2017. The Organization owns and manages a network of eight infrastructure-like office parks and four city centre office buildings totalling 42.6 million square feet. It is spread across diverse Indian cities like Bengaluru, Mumbai, Pune, and the National Capital Region (NCR).
2. Brookfield India Real Estate Trust
The primary activity of Brookfield India Real Estate Trust REIT is the development and maintenance of commercial real estate assets in India. It is located in four major cities of India: Mumbai, Gurugram, Noida and Kolkata. REIT is a desirable alternative for investors seeking a long-term investment with minimal risk.
3. Mindspace Business Parks REIT
The Mindspace REIT has a diverse portfolio that includes autonomous office buildings and Grade A integrated business districts dispersed across affluent commercial micro-markets in the Mumbai Region, Hyderabad, Pune, and Chennai. The total leasable space for Mindspace REIT as of June 30, 2022, is about 31.8 MSF, of which 24.4 MSF are completed spaces. It will be a fantastic investment if you aim for long-term growth with a touch of risk and gambling.
5 Types of REIT You Must Know Today!
1. Retail REIT
Retail REITs own and operate retail assets and lease the property to tenants. Retail real estate investment trusts include those that concentrate on sizable malls, brand outlets, supermarkets, and power centres with big box retailers. Retail REITs generate revenue by renting space to tenants, who pay the REIT business monthly, quarterly, or annually in rent.
2. Residential REIT
Investors can purchase real estate through residential REITs without sizable mortgage debt. Due to the fact that it only buys residential properties, a residential REIT is different from a standard REIT. A residential REIT may invest in family homes, student accommodation, apartment complexes, prefabricated homes, condo buildings, and town homes.
3. Healthcare REIT
Within the vast span of the real estate market, healthcare real estate is a specialised speciality globally. Healthcare real estate in the modern era consists of buildings, offices, and campuses rented to medical service providers or organisations associated with the healthcare community. Therefore, a healthcare REIT should encompass interests in various properties and a broad customer base.
4. Office REIT
Office REITs are real estate entities that own and operate commercial buildings that they rent to organisations and employees. They specialise in renting office space to particular kinds of clientele, such as law companies, banks, governments, etc. Some office REITs concentrate on specific market segments, including suburban or downtown regions. Some focus on particular tenant types, including governmental organisations or technology companies.
5. Mortgage REIT
Mortgage REIT, often known as mREIT, offer real estate finance by creating or acquiring mortgages or securities backed by mortgages. They also boost the commercial real estate industry by lending funds for the development, purchase, refinancing, and ownership of assets that generate income. The difference between the interest revenue produced by the mortgage assets and the funding expenses allows mREIT to turn a profit.
REIT is a viable solution if you want to invest your money to increase your income in the future. The best thing is that investing doesn’t require a large sum of money. In addition, REITs generally give investors the chance to own expensive real estate and give them the potential to receive dividend income, which will gradually increase their capital. Other benefits of REIT include transparency, inflation protection, and competitive market performance. In short, REIT is one of the smartest choices for your investment plan!
