Top Indian REITs In 2024

REITs are becoming one of the most prominent investment options in India. In recent years, we have seen several real estate investment trusts gain popularity and profitability. REITs offer an indirect way to invest in real estate, particularly in commercial properties that generate income.

REITs invest investors' money in commercial buildings, shopping malls, and retail spaces, earning profits that are shared among the investors. However, in India, REITs are still not widely popular, which contributes to the confusion surrounding investment in them and which REITs are the best choices. To make it easier for you, today we will discuss the most popular REITs in India and explore which REIT is best to invest in for optimal returns.

Brief Introduction About REITs

A REIT (Real Estate Investment Trust) is an organization similar to mutual funds, where thousands of investors pool their money. REITs invest in income-generating real estate assets, such as commercial buildings, offices, shops, malls, and more.

REITs generate income from these assets and distribute it among investors after deducting fees and liabilities. It is mandatory for REITs to share a minimum of 90 percent of their profits with investors.

In addition to this overview, I have written a comprehensive blog on REITs, discussing their history, how they work, and their advantages and disadvantages. In this blog, we will focus on the best REITs to invest in India for 2024.

Top 5 REITs in India

Top 5 Indian REITs You Should Consider for Investment:

1. Embassy Office Park REITs

It is India’s first listed REIT. Since then, they have been ruling the Indian market like no one. They mostly invest in income generating commercial assets such as offices, shops, warehouses, malls etc. They have a market valuation of 34,176 crores. The Embassy has performed outstandingly providing 20 percent in the period of 2023-24. 

It owns and operates top-quality office spaces in big cities like Bengaluru, Pune, Mumbai, and Noida. This REIT focuses on high-end commercial properties and earns consistent revenue through long-term leases with reliable tenants.

It’s a partnership between Embassy Group, a leading property developer, and Blackstone, a global investment firm. For investors looking to tap into India's commercial real estate, Embassy REIT offers a strong option with the potential for good returns.

Why Invest in Embassy REIT?

Investing in Embassy REIT can be appealing for several reasons. First, it has a strong history of generating steady rental income from well-known tenants. Second, with the backing of experienced companies like Embassy Group and Blackstone, investors can feel confident in its management.

Third, Embassy REIT typically offers attractive dividend yields, which can be higher than what you would get from regular fixed-income investments, making it a solid choice for income-focused investors.

2. Mindspace Business Parks REIT

Mindspace Business Parks REIT is another prominent option in India’s REIT market. It includes five integrated business parks and five independent office buildings, totaling a large leasable area of 32.3 million square feet.

The REIT's revenue has grown significantly, jumping from Rs. 1,201 crores in FY22 to Rs. 1,278 crores in FY23 and 1895 crores in FY24. Investors are drawn to Mindspace because of its strong growth and high-quality commercial spaces. Managed by K Raheja Corp, a well-known real estate developer, it offers a trustworthy investment opportunity in commercial real estate.

Why Invest in Mindspace REIT?

There are compelling reasons to consider Mindspace REIT for investment. First, it has a diverse range of tenants, including major IT companies, which helps reduce risk. Second, its properties are located in high-demand commercial areas, enhancing their potential value.

Finally, Mindspace is committed to sustainability and green building practices, which can attract environmentally conscious investors. Overall, it offers a good mix of growth potential and stability.

3. Brookfield India Real Estate Trust

Brookfield India Real Estate Trust is backed by Brookfield Asset Management, a global leader in real estate investment. This REIT focuses on both commercial and residential real estate, making it a versatile investment option.

Its portfolio includes high-end properties in key markets like Mumbai, Gurugram, Noida, and Kolkata, covering about 14 million square feet. With a focus on premium assets and long-term leases with multinational corporations, Brookfield India Real Estate Trust is an attractive choice for those seeking strong returns in real estate.

Why Invest in Brookfield REIT?

Investing in Brookfield India Real Estate Trust is appealing for several reasons. It primarily focuses on Grade-A commercial buildings located in prime areas, which tend to attract high-quality tenants.

Additionally, securing long-term leases with leading corporations ensures steady income for investors. Lastly, with Brookfield’s global expertise and robust management practices, investors can benefit from professional oversight and strategic decision-making, making it a smart addition to any investment portfolio.

4. Nexus Select Trust REIT

Nexus Select Trust REIT is the fourth listed REIT in India, backed by Blackstone. This REIT offers a unique opportunity for investors by focusing on retail assets. It aims to provide steady income and potential capital appreciation through its strong market presence and effective management practices.

With a diverse portfolio of 17 shopping malls in 14 major cities, including popular sites like Select Citywalk in Delhi and Nexus Seawoods in Navi Mumbai, Nexus Select Trust is well-positioned for growth in the retail sector.

Why Invest in Nexus Select Trust REIT?

Investing in Nexus Select Trust REIT can be beneficial due to its focus on high-growth sectors like retail and commercial real estate, which are expected to expand significantly. Its strong market position and portfolio of well-established properties make it a reliable investment choice.

Moreover, with 9.8 million square feet of retail space, investors have the potential for both consistent income and capital growth. Overall, this REIT offers an attractive opportunity for those looking to invest in India’s thriving retail market.

5. HDFC Real Estate Investment Trust

HDFC Real Estate Investment Trust is a significant player in the Indian REIT market, backed by the reputable HDFC Group. This REIT specialises in commercial real estate, particularly in major cities, and focuses on high-quality office properties.

By maintaining a diverse portfolio and ensuring strategic asset selection in key business districts, HDFC REIT aims to generate stable rental income. With its strong management and financial backing, it presents a solid investment choice for those interested in the commercial real estate sector.

Why Invest in HDFC REIT?

Investing in HDFC Real Estate Investment Trust is attractive for several reasons. First, it is backed by the respected HDFC Group, which adds a level of trust and reliability. Second, the properties are strategically located in busy business districts, ensuring high demand and occupancy rates.

Lastly, the focus on quality and thoughtful asset management can lead to consistent income for investors. Overall, HDFC REIT stands out as a strong choice for those looking to invest in Indian real estate.

Apart from these top 5 REITs, Godrej Properties REIT could also be a great option for some people.

Godrej Properties REIT

Godrej Properties is one of the most trusted names in the Indian real estate sector, known for both commercial and residential projects. With developments in cities like Mumbai, Bengaluru, Pune, and Delhi-NCR, Godrej Properties has a strong reputation for timely project delivery and quality.

The company’s strong pipeline of planned projects meets the growing demand in India’s real estate market. For investors, this brand offers a reliable option for tapping into the rising property market in the country.

Conclusion

Investing in these REITs provides a way to engage with India’s growing real estate sector while potentially earning income and capital appreciation. As the market continues to evolve, it’s important for investors to stay updated on the latest trends and developments in the REIT sector. By doing so, investors can make informed decisions and take advantage of the opportunities available in India’s vibrant real estate market.