REITs: The right way to invest in real estate?

REITs offer exposure to commercial real estate minus the ownership hassles. But do the potential risks outweigh the rewards? In 2019, when the first REIT was introduced in India, it was considered a blessing for small investors. Prior to that, you needed big bucks to buy your way into the commercial real estate market. Much like how stocks enable you to buy portions of businesses, REITs allow you to gain exposure to a portion of income-generating real estate projects. Since they invest in commercial real estate rather than residential real estate, you can expect 2-3 times higher rental yields. It is a quintessential example of turning an illiquid asset like real estate into a liquid one. That said, on the liquidity front, these investments aren’t without their flaws. About REITs First introduced in 1960 in the US, REITs were designed to let investors participate in the post-war property boom. Back then, skyscrapers, shopping malls, and apartment complexes were springing up everywhere, and REITs gave small investors a chance to gain exposure to these large-scale projects. They als

This article was originally published on July 07, 2025.