Overview of the Top REIT Stocks

Brookfield India Real Estate Trust REIT

Brookfield India Real Estate Trust is a publicly listed REIT focused on owning and operating high-quality, income-producing commercial office spaces across India’s top cities. It targets Grade-A office assets, offering stable cash flows and long-term capital appreciation opportunities.

Embassy Office Parks REIT

Embassy Office Parks REIT is India’s first listed REIT, specialising in premium office parks and commercial real estate. It owns and manages large-scale business campuses and Grade-A office spaces, catering to multinational and blue-chip tenants in major Indian cities.

Mindspace Business Parks REIT

Mindspace Business Parks REIT owns and develops integrated business parks and premium commercial office assets in key Indian markets. It focuses on high-quality office spaces, providing modern infrastructure and amenities to global and domestic corporates, ensuring robust rental income streams.

Nexus Select Trust

Nexus Select Trust is India’s first retail-focused REIT, investing in high-quality retail real estate assets across prime urban locations. It owns and operates shopping malls and mixed-use retail spaces, targeting steady rental income from diverse consumer and retail tenants.

What are REIT Stocks?

REIT stocks in India represent shares of Real Estate Investment Trusts (REITs) that are publicly traded. These stocks reflect investments in portfolios of income-generating properties. REITs in India are subject to regulatory oversight by SEBI, ensuring adherence to specific guidelines for transparency and investor protection in the market.

About the REITs Sector

1. Access to Commercial Property: Prior to REITs, investing in commercial properties required significant capital, but with REITs, individuals can invest and earn dividends through rental yields at a lower cost.
2. Regulation and Evolution: REIT regulations were established in 2014; however, India’s first REIT emerged five years later. The sector has now been in existence for approximately five years.
3. Market Value: As of May 14, 2025, the total market capitalisation of REITs in India exceeded ₹98,000 cr, approximately equivalent to $11.5 bn USD. Despite this, the trading volume remains lower compared to many small-cap stocks.

Future Outlook of the Real Estate Investment Trusts (REITs) Sector

1. Growth Potential: The REIT market is forecasted to expand beyond office spaces into asset classes such as industrial properties, data centres, hospitality, healthcare, and education.
2. Policy Support: Policy measures are promoting growth in the REIT market, particularly in India, where over 50% of Grade A office space is considered REIT-worthy.
3. New Listings Expected: India is expected to see the listing of at least four new REITs for retail investors in the coming years, which could improve asset quality and attract both retail and institutional investors.
4. Stock Market Performance Influence: The timing of these new REIT listings may depend on the performance of the stock markets, influencing market conditions and investor sentiment.

How does a Company Qualify as a REIT?

To qualify as a REIT, a company must meet specific criteria, including the following:

1. The entity must be structured as a business trust or a corporation.
2. The company must offer fully transferable shares.
3. Management should be carried out by a board of trustees or directors.
4. The company must have at least 100 shareholders.
5. No more than 5 individuals should hold 50% of the company’s shares during any taxable year.
6. At least 90% of the taxable income must be distributed as dividends.
7. A minimum of 75% of gross income should come from rental income or mortgage interest.
8. No more than 20% of the company's assets should consist of stock in taxable REIT subsidiaries.
9. At least 75% of the company’s assets must be invested in real estate.
10. A minimum of 95% of the total income of the REIT must be reinvested.