Best REITs in India (2026): How They’ve Performed Since Listing
Updated: Sep 29
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 do 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, are trusts that 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 income generated by these properties is distributed to investors as periodic distributions.
Effective January 1, 2026, SEBI reclassified REITs as equity-related instruments for investments by Mutual Funds and Specialized Investment Funds (SIFs), while InvITs continue to be classified as hybrid instruments. The move is intended to facilitate greater institutional participation, enhance liquidity and enable REITs to be considered for inclusion in equity indices.
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 also tracked through the Nifty REITs & InvITs Index and Nifty REITs and Realty Index under thematic indexes.
As of September 15, 2026, the Nifty REITs & InvITs index has delivered a 1-year return of 18.04% (Total Return Basis), and since its inception in July 2019, a CAGR of 12.78%.
The Nifty REITs & Realty Index tracks 15 securities, comprising publicly listed REITs and stocks from the Realty sector. It was launched on March 2, 2026, with a base date of July 1, 2021 and a base value of 1,000. The index delivered a 17.30% CAGR since inception on a Total Return Index basis.
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 full valuation of the assets must be conducted annually as of March 31, and a half-yearly valuation must be conducted as of September 30.
Launch of 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.
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Benefits and Impacts of SM REIT Framework (India)
Category | Benefits & Impacts |
For 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. |
Top REITs in India
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.
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.
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. It has 10 assets across key locations such as Mumbai, Gurugram, Noida, Kolkata, and Delhi.
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.
Knowledge Realty Trust - KRT is an Indian listed REIT sponsored by Sattva Group and Blackstone, focused primarily on owning and operating high-quality commercial office assets. It was listed in August 2025 on both NSE and BSE and has a portfolio concentrated across major Indian office markets.
Stock Performance
Embassy Office Parks REIT: Embassy delivered an 8.45% 1-year CAGR, supported by strong leasing and rental growth. FY26 revenue rose 13% and NOI 15%, while 6.4 msf was leased during the year with a 24% re-leasing spread. Its 21.09% standard deviation is the highest in the group, partly reflecting its larger exposure to office/technology demand and its significant Bengaluru concentration.
Mindspace Business Parks REIT: Mindspace was the strongest 1-year performer at 13.49%, helped by improving occupancy, leasing activity and rental escalations. Q4 FY26 NOI increased 37.4% YoY, while FY26 re-leasing spread was 31.8%. Its 13.24% standard deviation is considerably below Embassy's, suggesting that the strong recent performance came with comparatively lower price volatility.
Brookfield India REIT: Brookfield's 1-year CAGR of 1.94% was the weakest among the established REITs in the chart, despite continued operational growth. Q4 FY26 saw 9.71% rental escalation on 2.9 msf, but its 15.30% standard deviation remained relatively high. Its performance also needs to be viewed in the context of ongoing portfolio expansion, including its Mumbai BKC acquisition, which can create near-term capital and execution considerations while adding future growth potential.
Nexus Select Trust: Nexus has the highest inception CAGR at 16.66%, reflecting strong performance since its 2023 listing. Unlike the other REITs, Nexus is primarily a retail REIT, and its performance has benefited from strong consumer spending: FY26 tenant sales reached ₹143 billion, while retail occupancy remained at 97%. Its 7.84% 1-year CAGR and 14.65% standard deviation indicate solid returns with moderate volatility.
Knowledge Realty Trust: KRT's 11.21% CAGR since inception needs to be interpreted carefully because it listed only in August 2025, giving it a much shorter track record. Its 0.59% 1-year CAGR also reflects the relatively limited period of listed-market performance. Operationally, however, the REIT has shown strong momentum, with Q1 FY27 revenue and NOI both growing 15% YoY; its IPO proceeds also enabled substantial debt repayment, reducing LTV from 31% to 18%.
The broader backdrop has been supportive for Indian REITs, particularly office REITs, as GCC demand, falling vacancy and rental growth have supported leasing. India's operational REIT office portfolio grew sharply in H1 2026, with Bengaluru, Hyderabad and Mumbai remaining major REIT markets.
However, the macro environment has become somewhat less favourable recently: India's August 2026 inflation rose to 4.82%, raising concerns about the possibility of tighter monetary policy and higher interest rates. This is important for REITs because they are sensitive to borrowing costs and interest rates.
TTM Distribution and Distribution Yield
REIT | Current Price* | TTM Distribution per Unit | Distribution Yield |
Embassy Office Parks REIT | ₹437.75 | ₹25.79 | 5.89% |
Mindspace Business Parks REIT | ₹496.75 | ₹24.97 | 5.03% |
Brookfield India REIT | ₹337.59 | ₹21.75 | 6.44% |
Nexus Select Trust | ₹167.00 | ₹9.293 | 5.57% |
Knowledge Realty Trust | ₹113.49 | ₹6.435 | 5.67% |
To assess the income generated by REITs, we use the Trailing Twelve-Month (TTM) distribution, which represents the total amount distributed to investors per unit over the most recent four quarters.
For this analysis, the TTM period covers Q2 FY26, Q3 FY26, Q4 FY26 and Q1 FY27 (July 2025 to June 2026). The distributions for these four quarters are added to arrive at the TTM distribution per unit.
For example, for Embassy Office Parks REIT, the distributions were ₹6.51 in Q2 FY26, ₹6.47 in Q3 FY26, ₹6.50 in Q4 FY26 and ₹6.31 in Q1 FY27, resulting in a TTM distribution of ₹25.79 per unit.
Conclusion: Is Investing in REITs Right for You?
Real Estate Investment Trusts (REITs) provide investors with an accessible way to gain exposure to income-generating real estate assets without directly owning or managing physical properties. With features such as lower entry costs, liquidity, diversification and periodic distributions, REITs can complement a diversified investment portfolio while providing exposure to the real estate sector.
Since this article was published, India's REIT market has continued to evolve, with new REITs entering the listed market and the range of investment opportunities expanding. The introduction of the Small and Medium REIT (SM REIT) framework has also broadened participation in the real estate market by providing a structured route for smaller real estate assets and investors.
However, REITs should not be viewed solely as an income-generating investment. Distribution yields, capital appreciation, occupancy levels, rental growth, leverage and the quality of the underlying properties can all influence investor returns. Distribution amounts can also vary over time and may comprise different components such as interest, dividends, and debt repayment.
Who Should Consider Investing in REITs?
Retail investors seeking exposure to real estate without the high capital requirements of direct property ownership.
Investors seeking portfolio diversification by adding real estate exposure alongside traditional equity and fixed-income investments.
Long-term investors looking for a combination of potential capital appreciation and periodic distributions.
Investors comfortable with market-linked risk who understand that REIT unit prices can fluctuate with interest rates, market conditions and the performance of the underlying properties.
Ultimately, REITs can offer a convenient and transparent route to listed real estate exposure, but they should be evaluated on both their income potential and underlying fundamentals. Investors should consider factors such as valuation, portfolio quality, occupancy, rental growth, leverage and historical performance before making an investment decision.
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)
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