Real estate exposure without buying a flat
Real Estate Investment Trusts (REITs) offer a way for investors to gain exposure to commercial property without the liquidity issues of direct ownership. The article explains how these trusts function, their regulatory requirements in India, and the tax implications for investors.
Why it matters
Provides financial literacy on alternative investment vehicles for those looking to diversify portfolios beyond physical real estate.
Buying a flat eats a big chunk of savings, ties you to one location, and takes months to sell when you need the money. Lack of liquidity is the biggest drawback of owning property directly.
There is another way. Let professionals pool money from investors, buy real estate, and hand you a slice. You pay a fee for this. These routes are open to Indian investors: REIT and fractional real estate. They look alike but are different.
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