• Risk-return profile: REITs operate as moderate-risk instruments backed by long-term contracts, delivering average returns of 14% to 16% over five years. Income stability remained strong even during COVID-19, with portfolios maintaining a 99.9% income collection rate.
• Investment and selection: Investors can buy REIT units directly through broking websites on the BSE or NSE just like standard equity shares. Selection choices include geography and asset type, such as choosing between four office REITs and one shopping center REIT.
• Portfolio diversification: Large pan-India portfolios spanning 40 to 50 million square feet significantly lower risk compared to holding direct individual real estate assets.
• Retirement planning suitability: REITs provide regular quarterly cash distributions alongside potential capital appreciation, making them an effective instrument for steady income during retirement.