New Wave in Real Estate: Invest with Just ₹100

For decades, bank deposits, gold and real estate have been the most trusted investment choices for the common Indian investor. Among these, real estate once enjoyed massive popularity, especially in states like Kerala. However, that attraction has faded over time.

Why Traditional Real Estate Is Losing Its Shine

The biggest challenges with direct real estate investment today are:

• High capital requirement – Buying property requires lakhs or crores of rupees
• Low liquidity – Property cannot be sold quickly when cash is needed
• Uncertain resale value – Experts warn against investing in real estate solely for price appreciation

As a result, many investors are now searching for safer, more flexible alternatives.

REITs: Real Estate Investment for Everyone

A modern solution has emerged that allows people to invest in real estate with even ₹100 — REITs (Real Estate Investment Trusts).

REITs have recently grabbed attention after being identified as one of the fastest-growing real estate investment avenues in Asia.

Introduced in India in 2019, REITs have shown remarkable growth. Within just six years:

• Total Gross Asset Value (GAV): ₹2.3 lakh crore
• ₹1.66 lakh crore of this is held by listed REIT companies

According to a recent report, India’s REIT market has now surpassed Hong Kong, marking a major milestone.

What Exactly Are REITs?

REITs allow ordinary investors to become part-owners of large, income-generating real estate assets such as:

• Office buildings
• Shopping malls
• IT parks

How REITs Work

• Trading: REIT units can be bought and sold on stock exchanges, just like shares
• Income: Rental income from properties is distributed to investors as dividends
• Ownership: You earn from real estate without buying or managing property yourself

In simple terms, REITs offer rental income without investing crores of rupees.

Expected Returns from REITs

According to experienced investors and historical data:

• Expected annual returns: approximately 6% to 10%
• Five-year average return: over 8.9%

These returns are competitive when compared to traditional fixed-income options.

Listed REITs in India

Currently, there are five listed REITs in India:

1. Embassy REIT
2. Mindspace Business Parks REIT
3. Brookfield India REIT
4. Nexus Select Trust
5. Knowledge Realty Trust

Property Focus

• Nexus Select: Primarily shopping malls
• Others: Mainly office and commercial buildings

How Indian REITs Compare Globally

Highlighting some impressive comparisons:

• Indian REITs have delivered higher returns than REITs in:
• Singapore
• Japan
• Hong Kong
• These gains were achieved even during periods when global markets were struggling

This demonstrates the resilience and strength of India’s commercial real estate sector.

SEBI’s Big Move: REITs Now Treated Like Shares

In a significant regulatory change, SEBI has reclassified REITs under the equity category. Earlier, they were treated as debt or hybrid instruments.

What This Means for Investors

• Mutual Funds can now invest in REITs
• Increased domestic participation is expected
• Lower price volatility due to broader investor base
• Possibility of REITs being included in indices like Nifty and Sensex

Experts believe this move could also encourage more REIT listings in the future.

Conclusion: A Smart Entry into Real Estate

REITs offer a unique opportunity to participate in real estate investment without high capital, low liquidity or management hassles. With steady returns, regular income and growing regulatory support, REITs are fast becoming a preferred choice for modern investors.

For those who always wanted to invest in real estate but couldn’t afford it — REITs may be the perfect answer.