Stay abreast with the latest developments in the professional domain along with in-depth analysis through the monthly BCA Journal. Get access to an engaging library of researched publications from the BCAS stable.
Learn MoreExplore past issues of BCA Journal & indulge in a treasure trove of high-quality professional content across format of print, videos & learning events from the BCAS stable.
Learn More
A Real Estate Investment Trust (REIT) is a business trust that owns or finances income-producing real estate, such as commercial offices or malls, functioning similarly to a mutual fund. Investors purchase units, and the capital is used to invest in properties directly or through Special Purpose Vehicles (SPVs), with generated rent distributed as dividends. Key parties include the sponsor, manager, trustee, and unit holders. While established globally since 1960, India’s REIT market is transitioning from a "nascent" to a "growth" stage. As of 2025, India has five listed REITs covering 175 million square feet of assets. A significant regulatory shift occurred in September 2025 when SEBI reclassified REITs as equity instruments, removing previous allocation caps and enabling wider institutional participation. REITs provide developers with liquidity and an "asset-light" model, while offering investors stable income, high-yield returns (6%–10%), and transparency. Taxation has also evolved; the 2024 Union Budget aligned REITs with equity funds, setting capital gains tax at 12.5% for long-term and 20% for short-term holdings. Additionally, "atypical" distributions, such as debt repayments, now reduce the cost of acquisition or are taxed as "income from other sources" if they exceed the original issue price.
OVERVIEW – WHAT ARE REITs
A REIT is a business t
