Real estate has long been considered a cornerstone for wealth creation and portfolio diversification. However, for many retail investors, access to this lucrative asset class has been limited by high entry barriers, lack of transparency, and regulatory complexities. Recognizing this gap, the Securities and Exchange Board of India (SEBI) has taken a significant stride by introducing new regulations tailored for Small and Medium Real Estate Investment Trusts (SM REITs). The recent notification from SEBI regarding SM REITs particularly targets retail investors and aims to democratize access to high quality income generating real estate projects. In this blog, we delve into …
Tag: Real Estate Investment Trusts
Beneficial ways of investing In REITs : Types, Advantages & Limitations of REITs
A Real Estate Investment Trust (REIT) is a company that owns, operates or finances income producing Real Estate properties which may comprise of apartment buildings, cell towers, data centres, hotels, healthcare units, offices, warehouses etc. Most REITs focus on a particular property type, but some hold multiples types of properties in their portfolios. How does a company qualify as an REIT? REITs lease out their properties, collect rentals and distribute dividends to their shareholders. Mortgage REITs do not directly own real estate, but finance real estate instead and earn income from the interest on these investments. To qualify as a REIT, a company …