Which REITs are Yielding High Returns?

Real Estate Investment Trusts (REITs) were created to make real estate investing easier and more accessible. Instead of buying and managing properties yourself, REITs let you invest in big, income-generating properties—like office buildings, malls, or apartments—without the hassle.

India started embracing this idea back in 2014 when SEBI (Securities and Exchange Board of India) introduced rules to regulate REITs. Since then, REITs have grown into a popular way for Indians to get involved in real estate investing.

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Top REIT Stocks in India for 2025

Here are some of the most popular REITs in India to watch in 2025:

Which REITs are Yielding High Returns? — **Which REITs are Yielding High Returns**

🏢 Mindspace Business Parks REIT (MINDSPACE)

Sector: Office Real Estate
Price: ₹418.47
Dividend Yield: 6.63%
1-Year Return: 22.27%
Focuses on premium office spaces across major Indian cities.

🛍️ Nexus Select Trust (NXST)

Sector: Retail Real Estate
Price: ₹146.45
Dividend Yield: 4.77%
1-Year Return: 1.62%
Owns and manages popular shopping malls in prime locations.

🏙️ Embassy Office Parks REIT (EMBASSY)

Sector: Office Real Estate
Price: ₹385.43
Dividend Yield: 6.77%
1-Year Return: 5.31%
India’s first publicly listed REIT, known for large business parks.

Also Read: Which Small-Cap Stocks have Strong Growth Potential?

🏢 Brookfield India Real Estate Trust (BIRET)

Sector: Office Real Estate
Price: ₹318.60
Dividend Yield: 12.04%
1-Year Return: 18.40%
Invests in commercial office spaces in top business districts.

📌 Disclaimer: This list is for educational purposes only. Always do your own research or speak with a financial advisor before investing.

Types of REITs in India

REITs come in a few different types:

Equity REITs: They earn money mainly through rent from commercial properties.
Mortgage REITs (mREITs): These REITs lend money and earn interest.
Hybrid REITs: A mix of equity and mortgage REITs.
Private REITs: Not listed on stock exchanges and not registered with SEBI.
Public Traded REITs: Listed on the National Stock Exchange and regulated by SEBI.
Public Non-Traded REITs: Registered with SEBI but not listed on exchanges.

How to Invest in REITs in India

Investing in REITs is easy if you follow these steps:

Open a Demat or trading account – You can use platforms like smallcase.
Research the REITs you’re interested in – Use tools like Tickertape’s screener to filter based on your preferences.
Place your buy order – And you’re all set!

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Why Invest in REITs?

Here are some key benefits of investing in REIT stocks:

✅ Diversification – Add real estate to your portfolio without owning physical property.
✅ Liquidity – Since most REITs trade on the stock exchange, you can easily buy and sell.
✅ Steady Income – REITs often pay out regular dividends from rental income.
✅ Transparency – They are regulated by SEBI, so operations are clear and monitored.
✅ Attractive Dividends – REITs are required to distribute a large portion of their income, which means good returns for investors.

Who Should Consider Investing in REITs?

Those wanting to diversify beyond stocks and bonds
Investors looking for passive income through regular dividend payouts
People with moderate risk tolerance who are comfortable with real estate market ups and downs

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What Are the Risks?

Like any investment, REITs also come with some risks:

⚠️ Taxes – REIT dividends may be taxed at a higher rate than regular dividends.
⚠️ Complex Deductions – They may qualify for a 20% pass-through tax deduction, but it can be tricky to manage.
⚠️ Sensitive to Interest Rates – REIT prices can drop when interest rates go up.
⚠️ Sector-Specific Risks – For example, hotel or retail REITs may suffer during economic downturns.

Things to Know Before You Invest

💸 No Tax Benefit – REIT dividends are fully taxable.
📉 Market Volatility – Prices can go up and down based on the market.
📊 Low Capital Growth – REITs typically reinvest only 10% of their profits, so growth might be slow.

Let REITs work for you if you’re looking to earn passive income and diversify your portfolio—just be sure to research carefully and invest based on your goals and risk tolerance.