REITs are just like mutual funds, but instead of using the money collected from investors to buy stocks and bonds, they invest in property.
Till now investing in property has been a big investment whether you invest in residential or commercial realty market. Right now SEBI has allowed REITs only in commercial real estate, where the rental yield has been in range of 8-9% on annualized basis.
Till now investing in property has been a big investment whether you invest in residential or commercial realty market. Right now SEBI has allowed REITs only in commercial real estate, where the rental yield has been in range of 8-9% on annualized basis.
- Minimum investment size of 2 Lakh of rupees
- IPO size of 250 Crore
- Market lot of 1 Lakh rupees
- Investment in commerical real estate with 80% in rent earning project
- Balance 20% in asset under construction projects which are slightly riskier
- Will be listed on stock exchange
- It will increase the fund flow in already cash strapped real estate sector
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