List of Top REIT Stocks in India (2025)

What are REITs in India?

Overview of Top REIT Stocks in India

1. Embassy Office Parks REIT: Embassy Office Parks REIT is India’s first publicly listed REIT. It owns and manages office parks and buildings in major cities like Bengaluru, Mumbai, Pune, NCR, and Chennai.
2. Mindspace Business Parks REIT: Mindspace Business Parks REIT owns high-quality office parks and business buildings in cities like Mumbai, Hyderabad, Pune, and Chennai.
3. Nexus Select Trust: Nexus Select Trust is the first publicly listed REIT in India that focuses on retail real estate, including large shopping malls. Its properties are located in major urban areas across India, providing retail and office spaces.
4. Brookfield India Real Estate Trust: Brookfield India Real Estate Trust owns office spaces, and it is managed by Brookfield Asset Management and focuses on high-quality office parks in prime locations.

Types of REITs in India

• Equity: Equity REITs primarily focus on running and overseeing commercial buildings that produce income. Rent is a major source of income in this area, making REITs in India a popular investment choice.
• Mortgage: Mortgage REITs, commonly known as “mREITs,” are associated with lending money to proprietors and extending mortgage facilities. These SEBI-registered REITs earn income by charging interest on the funds they lend to business owners.
• Hybrid: Hybrid REITs allow investors to diversify their portfolios by investing in both equity and mortgage REITs.
• Private REITs: Private REITs are real estate funds or companies that are not traded on national securities exchanges and are not registered with the SEBI REITs regulations in India.
• Publicly traded REITs: Real estate investment trust shares are traded on the National Securities Exchange and registered with the Securities & Exchange Board of India.
• Public non-traded REITs: Non-traded REITs that are publicly traded are not traded on the National Stock Exchange but are registered with SEBI.

How to Invest in REIT Stocks in India?

Benefits of Investing in REIT Sector Stocks

• Income Generation Potential: REITs are required to distribute at least 90% of their net distributable cash flow to shareholders. This ensures that investors receive regular dividends from rental income generated by the underlying real estate properties.
• Liquidity: Unlike direct property investments, REIT stocks are traded on stock exchanges, providing liquidity. Investors can easily buy or sell REIT stocks, making them a more flexible investment compared to physical real estate.
• Lower Capital Requirement: REITs allow investors to participate in large-scale real estate ventures with relatively lower capital. They provide access to high-value properties without the need for large upfront investments, making real estate more accessible to retail investors.

Risks of Investing in REIT Stocks

• Market Risk: REIT stocks are subject to market volatility, meaning their value can fluctuate based on market conditions, economic cycles, or investor sentiment. Even if the underlying properties are generating steady income, the stock price can be affected by broader market trends.
• Interest Rate Risk: REITs are sensitive to changes in interest rates. When interest rates rise, the cost of borrowing for REITs increases, which could affect their profitability. Additionally, higher rates may make other income-generating investments more attractive, leading to a decline in REIT stock prices.
• Property-Specific Risk:  REITs rely on the performance of the real estate properties they own. If a property experiences issues, such as high vacancy rates, lower rents, or maintenance costs, the income generated by that property can decline, affecting the REIT’s overall performance.

Factors to Consider Before Investing in REIT Stocks

• Type of Properties: The types of properties a REIT invests in can influence its performance. For example, office buildings, shopping malls, and residential properties can each react differently to economic changes.
• Dividend History: A REIT’s ability to pay regular dividends is important for investors looking for income. It’s helpful to check how consistently a REIT has paid dividends in the past.
• Sensitivity to Interest Rates: REITs are susceptible to fluctuations in interest rates. When rates go up, the cost of borrowing for REITs increases, which can affect profitability. Understanding how interest rate changes might influence the REIT’s performance can help in evaluating the investment.

Who Should Consider REIT Stocks?

• Investors Looking to Diversify: REITs can offer exposure to real estate, helping investors broaden their portfolios beyond traditional stocks and bonds.
• Passive Income Seekers: Since SEBI-registered REITs are required to distribute a significant portion of their income, they can provide regular dividend payments for those looking for passive income.
• Those Looking for Liquidity: Unlike direct real estate investments, REITs are traded on stock exchanges. Investors who want exposure to real estate but prefer the ability to buy or sell their investments easily may find REIT stocks appealing.