Understanding the Types of REITs in India | Rhythm ResiTel®
India’s real estate sector is undergoing a structural evolution, and one of the most impactful reforms in recent years has been the introduction of REITs (Real Estate Investment Trusts). For investors—both Indian residents and NRIs—REITs have opened new doors to passive income, portfolio diversification, and exposure to large-scale commercial real estate.
But before investing, it’s important to understand the different types of REITs in India, how they work, and where the best opportunities lie—especially in high-growth cities like Gurugram, where Rhythm ResiTel® offers REIT-aligned investment properties.
What Is a REIT?
A REIT (Real Estate Investment Trust) is a SEBI-regulated entity that owns and manages income-generating real estate. Investors can buy units of a REIT, just like mutual funds or stocks, and earn income through dividends and capital appreciation. REITs allow individuals to invest in large-scale real estate projects—such as commercial offices, retail malls, and logistics hubs—without actually owning the property directly.
India launched its first REIT in 2019, and since then, the segment has grown rapidly, offering transparent, low-risk access to commercial real estate.
Types of REITs in India
REITs in India can be broadly classified based on the nature of assets they manage. Here are the key categories:
1. Equity REITs
These are the most common type in India and globally. Equity REITs acquire, develop, and manage income-producing real estate such as office spaces, tech parks, retail outlets, and hospitality properties. The rental income is distributed to investors as dividends.
Example:
Embassy Office Parks REIT (India’s first listed REIT)
Mindspace Business Parks REIT
Brookfield India REIT
Average returns: 6–7% annual dividend yields + 4–6% capital appreciation
Source: Moneycontrol
2. Mortgage REITs (mREITs)
These REITs invest in real estate debt—primarily mortgages and loans. Instead of owning the property, mREITs generate returns from interest income. This type is still evolving in India and has limited presence due to regulatory constraints.
3. Hybrid REITs
Hybrid REITs combine elements of both equity and mortgage REITs. They hold a mix of property and mortgage investments, offering income from both rent and interest. However, this model is not yet prominent in India due to its complex structure and nascent regulatory environment.
What Types of REITs Are Available in India Today?
Currently, India’s REIT market is dominated by Equity REITs that invest in Grade-A commercial office spaces, particularly in cities like:
Gurugram (NCR)
Bengaluru
Hyderabad
Mumbai
These cities offer high rental yields, stable corporate leasing demand, and long-term tenant contracts—making them ideal for REIT strategies.
Why Gurugram Is at the Center of India’s REIT Growth
Gurugram is home to 250+ Fortune 500 companies and continues to attract multinational corporations, IT firms, and startups. With growing demand for office space, the city has become a REIT hotspot.
According to the Haryana government, Gurugram has over 20 million sq. ft. of Grade-A commercial real estate under active lease, offering high rental income and long-term appreciation.
Source: Hindustan Times
Rhythm ResiTel®: Own Property in India’s REIT Capital—Gurugram
While REITs offer exposure to commercial property, Rhythm ResiTel® offers you something even better—full ownership of REIT-aligned residential apartments in Gurugram, complete with ready-to-lease units, corporate rental contracts, and guaranteed income.
Benefits of Investing with Rhythm ResiTel®:
✅ Located in REIT-backed zones of Gurugram
✅ Earn 9–12% annual rental yield—higher than typical REITs
✅ Full property ownership and capital appreciation
✅ Completely managed rentals—perfect for passive income
✅ Ideal for NRIs and high-income Indian investors
Explore REIT-Eligible Gurugram Properties
Final Thoughts: Know Your REITs, Then Invest Smarter
As India’s real estate market matures, understanding the types of REITs and how they function can help you make informed decisions. Whether you invest in a listed REIT or choose direct ownership, the goal is the same: steady returns, asset security, and long-term value.
At Rhythm ResiTel®, we offer NRI and high-income investors a strategic entry point into one of India’s most lucrative real estate markets—Gurugram, backed by REIT activity and corporate demand.
Visit https://rhythmresitel.com to book your consultation and discover how to invest smarter with premium properties aligned with India’s REIT growth.
