Real Estate Investment Trust -REIT

REIT is a company that owns ,operates, or finances income-generating real estate.It is similar to mutual funds where it pools in the capital of multiple investors but they are different in a way that their assets are primarily commercial Real Estate holdings and can be liquidated when needed.This enables individual investors to earn dividends from real estate investments without buying, managing or financing any properties themselves.The REITs are publicly traded like stocks.Their primary investment is in real estate properties like apartment buildings, cell towers, data centres, hotels, medical facilities, offices ,retail centres and warehouses. The government of India has encouraged more retail investors to participate in this asset class by reducing the application value and reduction in minimum number of trading units .This will also attract the global investments in India. With reality market expansion in India over the past few years, favourable government policies and long term investment outlook , REITS are offering a new investment opportunity to retail investors who currently find it difficult to invest in commercial real estate due to high capital costs.