REITs in India: How They Work, Listed REITs, Rules and Tax
A REIT in India is a SEBI-regulated trust owning rent-earning property. Six trade on NSE and BSE; you can buy one unit through a demat account.
Written by Aarav Sharma
Updated on 17 September 2026·5 min read
On this page9 sections
A REIT in India is a SEBI-regulated trust that owns rent-earning commercial property and pays most of its cash to unitholders. Six REITs trade on NSE and BSE in September 2026, and you can buy one unit through a demat account. Each must pay out at least 90% of its net distributable cash flows.
Key facts
| Item | Position on 17 September 2026 |
|---|---|
| Regulator and law | SEBI, under the SEBI (Real Estate Investment Trusts) Regulations, 2014, last amended 18 April 2026 |
| REITs registered with SEBI | 6 |
| Trading lot on the exchange | 1 unit |
| Minimum application in a REIT IPO | ₹10,000 to ₹15,000 |
| Payout rule | At least 90% of net distributable cash flows, declared at least once every six months |
| Asset rule | At least 80% of assets in completed, rent or income-generating property |
| Mutual fund treatment | Equity-related instrument from 1 January 2026 |
| Small and Medium (SM) REIT unit price | At least ₹10 lakh; scheme assets ₹50 crore to under ₹500 crore |
| Tax on selling listed units | 12.5% on long-term gains (held over 12 months) above ₹1.25 lakh; 20% short-term |
How a REIT works
A sponsor sets up the REIT as a trust. The trust owns office parks or malls directly or through special purpose vehicles (SPVs). Tenants pay rent to the SPVs, the SPVs pass cash up to the REIT, and the REIT pays unitholders. A SEBI-registered trustee holds the assets for unitholders, and a manager runs the business.
SEBI’s regulations fix the main safeguards:
- Not less than 80% of the value of REIT assets must be in completed and rent or income-generating properties.
- Not less than 90% of the net distributable cash flows of the REIT must go to unitholders.
- Distributions must be declared at least once every six months in each financial year and paid within five working days of the record date.
- A REIT’s first public offer needs assets worth at least ₹500 crore.
Listed REITs in India
SEBI’s register lists six REITs as on 16 September 2026, and six REITs trade on NSE and BSE:
| REIT | Main property type | Note |
|---|---|---|
| Embassy Office Parks REIT | Office parks | SEBI-registered 3 August 2017 |
| Mindspace Business Parks REIT | Office parks | SEBI-registered 10 December 2019 |
| Brookfield India Real Estate Trust | Office parks | SEBI-registered 15 September 2020 |
| Nexus Select Trust | Shopping malls | SEBI-registered 15 September 2022 |
| Knowledge Realty Trust | Office parks | IPO in August 2025 |
| Bagmane Prime Office REIT | Office parks | SEBI-registered 15 July 2025; IPO in May 2026 |
Unit prices and payouts change daily. Our listed REITs tracker covers prices and distributions, and the REITs and InvITs hub compares REITs with infrastructure trusts.
How to invest in a REIT
- Open a demat and trading account with a SEBI-registered broker, if you do not have one.
- Search for the REIT by name or NSE symbol in your broker’s app.
- Read the REIT’s latest results and distribution history on its investor page.
- Place a buy order. You can buy one unit at a time.
- Units reach your demat account after settlement, and distributions are paid to your linked bank account.
You can also apply in a REIT IPO, where the minimum application is ₹10,000 to ₹15,000. Mutual funds are another route: since 1 January 2026, SEBI treats fund investments in REITs as equity-related, and AMFI includes REITs in its market-cap lists. REITs can join equity indices only from 1 July 2026.
Small and Medium REITs
SEBI added a separate framework for Small and Medium REITs (SM REITs) to the same regulations. Each SM REIT runs one or more schemes, and each scheme holds property worth at least ₹50 crore and less than ₹500 crore. The minimum price of one unit is ₹10 lakh, so SM REITs suit investors who can put that much into a single property.
How REIT income is taxed
A REIT payout usually has several parts, and each is taxed differently. Embassy REIT describes the treatment for its unitholders this way:
| Part of the payout | Tax in your hands |
|---|---|
| Dividend | Exempt, where the SPV has not opted for the lower corporate tax rate |
| Interest | Taxable at your slab rate; tax deducted at 10% for residents |
| Repayment of SPV debt | Not taxed when received, but reduces your cost for capital gains |
| Gain on selling units | 12.5% if held over 12 months, 20% if held for 12 months or less |
The Finance (No. 2) Act, 2024 cut the long-term holding period for listed REIT units from 36 months to 12. Long-term gains are taxed at 12.5% on the amount above ₹1.25 lakh a year. Each REIT’s distribution notice shows the split, so check it before you file. For FY 2025-26 returns these rules come from the Income-tax Act, 1961; from tax year 2026-27 the Income-tax Act, 2025 applies, so confirm the treatment with a tax professional if your case is complex. Use the capital gains calculator to estimate tax on a sale.
Risks to weigh
- Unit prices move with the market and with interest rates, so you can lose money.
- Payouts depend on occupancy and rents and are not guaranteed.
- Listed REITs are concentrated in office parks and malls in a few large cities.
- Rules and tax treatment can change, as the 2024 and 2026 changes show.
Frequently asked questions
How many REITs are there in India?
Six REITs trade on NSE and BSE in September 2026: Embassy, Mindspace, Brookfield India, Nexus Select, Knowledge Realty and Bagmane Prime Office. SEBI’s register also lists six.
What is the minimum investment in a REIT in India?
One unit on the stock exchange, since the trading lot is one unit. In a REIT IPO the minimum application is ₹10,000 to ₹15,000. SM REIT units cost at least ₹10 lakh.
Who regulates REITs in India?
SEBI, under the SEBI (Real Estate Investment Trusts) Regulations, 2014, most recently amended on 18 April 2026.
How much of its income must a REIT pay out?
At least 90% of its net distributable cash flows, declared at least once every six months.
Are REITs equity or debt for mutual funds?
Equity-related, for investments made from 1 January 2026. InvITs remain hybrid instruments.
Is REIT income tax-free?
Only in part. Dividends are usually exempt, interest is taxed at your slab rate, and debt repayment lowers your cost of acquisition.
Sources
- SEBI (Real Estate Investment Trusts) Regulations, 2014, last amended 18 April 2026 — SEBI (checked 17 Sep 2026)
- Registered Real Estate Investment Trusts — SEBI (checked 17 Sep 2026)
- Reclassification of REITs as equity related instruments, 28 November 2025 — SEBI (checked 17 Sep 2026)
- FAQs on the new capital gains tax regime, 24 July 2024 — CBDT via PIB (checked 17 Sep 2026)
- Tax on long-term capital gains — Income Tax Department (checked 17 Sep 2026)
- How to invest in a REIT — Embassy Office Parks REIT (checked 17 Sep 2026)
- IPO information — Bagmane Prime Office REIT (checked 17 Sep 2026)
- Q2 FY26 press release — Knowledge Realty Trust (checked 17 Sep 2026)
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