Best REITs in India (2025): How They’ve Performed Since Listing

Introduction

Real estate has long been a preferred investment for those seeking stable income and long-term growth. However, not everyone can afford to buy or manage physical property. This is where Real Estate Investment Trusts (REITs) come in.

With REITs (Real Estate Investment Trusts), you can invest in large-scale, income-generating real estate with just a few clicks. In this blog, we’ve covered what REITs are, how they work, who should consider investing in them, a list of all the REITs currently available in India, and how they’ve performed over the years.

What Are REITS?

REITs, or Real Estate Investment Trusts, pool money from investors to invest in income-generating real estate assets. Think of them like mutual funds, but instead of stocks or bonds, they invest in properties like office spaces, shopping malls, warehouses, and hotels.

Just like you buy shares of a company on the stock market, you can also buy shares of REITs. These shares represent your ownership in a portfolio of real estate assets. They can also raise funds through borrowings when needed.

REITs primarily invest in commercial real estate that generates regular rental income. In India, this includes office parks, IT campuses, logistics centers, and retail malls. The rental income collected is then distributed to investors as dividends.

What Distinguishes REITs From Other Stocks

1. Nature of Business

• REITs: Own, operate, or finance income-producing real estate (e.g., malls, offices, data centers, warehouses).

• Other Stocks: Can be from any industry like - tech, pharma, banking, FMCG, etc

  
  

2. Income Source

• REITs: Earn revenue primarily through rental income or lease payments.

• Other Stocks: The underlying companies earn revenue through selling goods/services.

  
  

3. Dividend Payout

• REITs: Must distribute at least 90% of taxable income as dividends (as per law).

• Other Stocks: Dividends are optional and based on board decisions.

  
  

 4. Volatility

• REITs: Generally, less volatile; backed by physical assets.

• Other Stocks: Can be highly volatile; performance depends on market, competition, etc.

  
  

5. Tax Treatment: Both follow a similar taxation system.

REITs	Other Stocks
Dividends are taxable in the hands of the investor at slab rates if the REIT opts for Section 115BAA (most do)	Dividends are taxable in the hands of the investor at slab rates (if dividend > ₹5,000)
If the holding period is more than 12 months, the profit is considered a Long-Term Capital Gain (LTCG) and is taxed at 12.50% if the gain exceeds ₹1.25 lakh in a financial year.	If the holding period is more than 12 months, it qualifies as a Long-Term Capital Gain (LTCG) and is taxed at 12.50% if the gains exceed ₹1.25 lakh in a financial year.
If the holding period is less than 12 months, the profit is treated as a Short-Term Capital Gain (STCG) and is taxed at 20% on the gains.	If the holding period is less than 12 months, the profit is treated as a Short-Term Capital Gain (STCG) and is taxed at 20% on the gains.

REITs vs Traditional Real Estate: Benefits & Drawbacks

For most investors, the big question is whether to go with a REIT or buy a physical property. Both have their place in a portfolio, but they differ significantly in terms of liquidity, entry cost, risk, and income stability. The image below offers a quick comparison of REITs vs traditional real estate on key investment parameters:

REITS In India

REITs in India are tracked through the Nifty REITs & InvITs Index under thematic indexes, which includes listed REITs and Infrastructure Investment Trusts (InvITs).

As of June 30, 2025, the 1-year return of the index is 16.41% (Total Return Basis), and since its inception in July 2019, it has delivered a CAGR of 11.42%.

In India, REITs (Real Estate Investment Trusts) are regulated by SEBI — the Securities and Exchange Board of India under Real Estate Investment Trusts Regulations, 2014,

Key SEBI Regulations for REITs:

• Minimum 80% of REIT assets must be invested in income-generating commercial properties.

• REITs must distribute at least 90% of their net distributable cash flows to investors.

• Mandatory quarterly disclosures of financials and property performance.

• A registered valuer must do a valuation of assets every 6 months.

Best REITs in India: Reviewing the Listed REIT Companies

As of 2025, India has four publicly listed REITs, each with a distinct portfolio, investment strategy, and market positioning. From office parks and business campuses to large-format retail malls, these REITs give investors exposure to income-generating commercial properties across major Indian cities.

Here's a quick overview of the listed REIT companies:

1. Embassy Office Parks REIT

Launched as India’s first publicly listed REIT, Embassy REIT owns and manages a massive 51.1 million sq. ft. portfolio across top office markets like Bengaluru, Mumbai, Pune, NCR, and Chennai.

2. Mindspace Business Parks REIT

Mindspace REIT owns a premium portfolio of Grade-A business parks, office buildings, and high-tech data centers spread across India’s top commercial hubs—Mumbai, Hyderabad, Pune, and Chennai.

3. Brookfield India Real Estate Trust

Brookfield REIT is India’s only 100% institutionally managed office REIT, offering investors exposure to a high-quality portfolio of Grade-A commercial properties, with 10 assets across key locations like Mumbai, Gurugram, Noida, Kolkata, and Delhi.

4. Nexus Select Trust

India’s first listed retail REIT, Nexus Select Trust, owns a portfolio of 19 retail malls across 15 cities, totaling 10.6 million sq. ft. With an impressive 97.2% occupancy, it hosts over 130 million annual visitors and recorded ₹124 billion in tenant sales in FY25.

 

Methodology -Evaluating the Risk and Return of Listed REITs in India

1. REIT Selection: Identified all listed REITs on the National Stock Exchange (NSE):

2. IPO Details: Collected IPO price, listing date, and other offering details from the Capitaline database.

3. Price and Return Data: Stock price history was used to calculate CAGR (price return) from the IPO date to July 2025.

4. Risk Calculation: Calculated using the standard deviation of returns

5. Dividend and Financial Data: Dividend history and financial data were sourced from each REIT’s Annual Reports and Capitaline.

6. Total Return Computation: Total Return = Price CAGR + Average Dividend Yield

Objective: To analyze and compare the risk-return profile of each REIT to understand their performance and volatility.

Performance of REITs

Here’s how India’s listed REITs have actually performed since their IPOs, based on CAGR, total returns (price + dividends), and volatility. We’ve also considered how external events like COVID-19 impacted their performance trajectory to identify the best REITS in India.

1. Embassy Office Parks REIT

• Launched first, on April 1, 2019, with an IPO price of Rs300 per share, making it the oldest REIT in the Indian market.

• The CAGR from inception is 4.82%, which is relatively modest.

• Total return (price appreciation + dividends) stands at 11.29%.

• The standard deviation (risk) is 22.11%, the highest among the 4, indicating more volatility in returns compared to its peers.

• Embassy Office Parks REIT was listed in March 2019—just before the onset of the COVID-19 pandemic. Initially, the REIT performed well, witnessing a steady surge in its stock price, reaching an all-time high of ₹474 by March 2020. However, as COVID-19 began to impact India, the commercial real estate segment, particularly office spaces, was severely affected.

• The stock saw a considerable decline due to the shift toward work-from-home and hybrid models, creating uncertainty in office occupancy and rental income. This marked the beginning of a volatile phase in its price movement.

2. Mindspace Business Parks REIT

• Launched second, on August 7, 2020, with an IPO price of Rs275 per share—right in the middle of the Covid crisis.

• Shows a strong CAGR of 8.85%, significantly better than Embassy.

• Total return is 15.27%.

• Has the lowest standard deviation (13.39%), meaning more stable and less risky returns.

• You would have noticed that even though Mindspace and Embassy operate in the same sector, and both primarily invest in commercial office spaces, Mindspace exhibits relatively lower risk. This is largely due to its higher degree of diversification—both geographical and sectoral.

• While Embassy is heavily concentrated in Bengaluru (75%) and dependent on large global tech firms, Mindspace has spread its assets across multiple cities like Mumbai (38%), Pune (16%), Hyderabad (43%), and Chennai (3%), and serves a more balanced tenant base including BFSI, consulting, and domestic corporates. This broader diversification cushions it against regional downturns or sector-specific shocks, resulting in more stable performance and lower volatility in comparison.

3. Brookfield India Real Estate Trust

• Launched third, on February 16, 2021, with an IPO price of Rs275 per share

• CAGR stands at 3.04%, which is the lowest among the four.

• Total return is 9.19%.

• The standard deviation is 15.58%, indicating moderate volatility.

4. Nexus Select Trust

• Most recent launch, on May 19, 2023, with an IPO price of Rs100 per share.

• Highest CAGR of 19.67% - higher returns are due to portfolio being in retail assets, unlike other REITS which have office assets. Retail spaces have higher shorter lock-ins, higher occupancy and rentals linked to store revenues.

• Nexus manages a portfolio of well-known retail malls across India, giving it strong brand visibility and consistent footfall. This popularity has helped maintain investor confidence and driven up unit prices.

• Total return is 24.86%, the best among peers.

• Standard deviation (15.22%) is moderate, but its performance needs more time to stabilize and be judged fairly.

Launch of the Small and Medium REIT Framework in India

The SM REIT framework, introduced by SEBI in March 2024, allows pooling of smaller, rent-generating real estate assets with a minimum asset value of ₹50 crore per scheme (much lower than the ₹500 crore for traditional REITs). These REITs can launch multiple schemes, each listed separately on stock exchanges, offering greater flexibility.

This move aims to broaden investor access and formalize investments in grade-B and smaller commercial real estate. It benefits small developers, boosts real estate liquidity, and opens new avenues for retail and institutional investors looking for stable income-generating investments.

Benefits and Impacts of SM REIT Framework (India)

SEBI’s introduction of the Small and Medium Real Estate Investment Trust (SM REIT) framework in March 2024 marks a major shift for India’s real estate and capital markets. Unlike traditional REITs that focus on large-scale assets, SM REITs are structured to include small to mid-sized rent-yielding properties. Here’s a breakdown of the expected benefits and broader impact of this move:

Category	Benefits & Impacts
For the Real Estate Industry	- Unlocks capital for small and mid-sized developers by monetizing rent-generating assets. - Brings smaller commercial properties into the formal, regulated space. - Boosts demand for professional property and asset management.
For Financial Markets & Investors	- Enables new investment opportunities for HNIs and institutional investors with smaller ticket sizes. - Diversifies the REIT market beyond large office parks and malls. - Provides stable, income-generating instruments in portfolios.
Liquidity & Transparency	- Enhances transparency through SEBI-mandated disclosure and valuation norms. - Improves secondary market liquidity by mandating public listing.
Economic Impact	- Encourages broader participation in real estate ownership, democratizing wealth creation. - Strengthens capital markets by introducing more structured real estate investment products.

Conclusion: Is Investing in REITs Right for You?

Real Estate Investment Trusts (REITs) offer a compelling alternative to traditional real estate investments, providing access to high-quality, income-generating assets without the hassle of property ownership. With benefits such as low entry costs, high liquidity, diversification, and regular dividend income, REITs are especially suited for those who seek stable returns and want exposure to real estate with the convenience of stock market investing.

The launch of the Small and Medium REIT (SM REIT) framework has further broadened the landscape by enabling smaller investors and developers to participate in the formal real estate market. This enhances capital access for the sector and adds new depth to India's growing financial markets.

Who Should Invest in REITs?

• Retail investors looking for passive income through dividends.

• HNIs and institutional investors seeking portfolio diversification into real estate.

• New investors who want exposure to real estate but lack the capital or expertise for direct ownership.

• Retirees or conservative investors aiming for stable, long-term income streams.

  
  

Whether you're a first-time investor or a seasoned professional, REITs offer a balanced mix of growth, income, and transparency—making them a valuable addition to modern investment portfolios. For tailored advice based on your goals and risk profile, it’s worth discussing REITs with your investment consultant.

FAQs

What are the listed REITs in India?

There are four listed REITs in India are: Embassy Office Parks REIT, Mindspace Business Parks REIT, Brookfield India Real Estate Trust, and Nexus Select Trust. Each REIT has a unique portfolio and risk-return profile, allowing investors to choose based on their investment goals.

How to choose the best REITs?

To choose the best REIT, evaluate three key factors: total return (CAGR + yield), volatility (standard deviation), and portfolio quality. Also consider sector exposure (office vs retail), occupancy rates, and dividend consistency. Align your choice with your risk appetite and investment horizon.

How much do REITs distribute as dividends?

In India, REITs are mandated to distribute at least 90% of their net distributable cash flows to unitholders as dividends. This regulation ensures steady income for investors and makes REITs a compelling option for those seeking passive income from real estate.

Is the REIT dividend taxable in India?

Dividends are taxable in the hands of the investor at slab rates if the REIT opts for Section 115BAA (most do)