How to Invest in Publicly Traded Real Estate in India?
Publicly Traded Real Estate means Real Estate Investment Trusts also known as REITs in simple language.
Real Estate Investment Trust or REIT is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return, REITs are required to distribute 90% of their income, which may be taxable, into the hands of the investors. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks.
Like other corporations, REITs can be publicly or privately held. Public REITs may be listed on public stock exchanges like shares of common stock in other firms.
In USA, there are around 200 REITS. But In India this concept is a new one. There is a lots of opportunity in the Indian Real Estate. You can invest even a small amount through REITS now.
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