+
REIT, fractional ownership gaining momentum in commercial space
Real Estate

REIT, fractional ownership gaining momentum in commercial space

Indian REITs are primarily skewed toward IT-occupied assets. As the government prepares to disinvest in different classes of assets, these funds would gain more traction and REITs can become more broad-based, finds E Jayashree Kurup.

Commercial real estate is a popular segment for institutional investors owing to its tangible nature and steady returns. The current pandemic has opened gates to new technologies where the investors are adding real estate assets to their portfolios without the need of managing physical property. By allowing investors to own fractions of it, REIT has become an affordable option, further helping to mobilise money from many retail investors. 


A fractional model or REIT allows investors to invest in premium commercial properties and earn a monthly rental yield. Through REIT, buyers can now manage and sell income-generating assets on an entirely online platform through a fractional investment model. Such properties can generate good rental yields besides offering an extremely promising appreciation. 
 
The demand in the Indian real estate sector has always been outpacing the supply, especially in urban cities. REIT investments are witnessing a surge, especially in metro cities with IT professionals, which are mostly 85-95% tenanted, and even during the pandemic there were no significant exits from these properties. Since most of these are integrated complexes, the F&B outlets, food courts, and hotels in the complexes also contribute to the monthly income. 
 
Any domestic, foreign, retail, or institutional investor can purchase REIT units. One can buy shares of REITs like any other shares on the stock exchange, through demat accounts and the buying and selling can be done on NSE or BSE, upon listing. To sum up, REITs or fractional investments are lucrative as they can generate good rental yield if planned wisely. 
          

Click here to read more

Indian REITs are primarily skewed toward IT-occupied assets. As the government prepares to disinvest in different classes of assets, these funds would gain more traction and REITs can become more broad-based, finds E Jayashree Kurup. Commercial real estate is a popular segment for institutional investors owing to its tangible nature and steady returns. The current pandemic has opened gates to new technologies where the investors are adding real estate assets to their portfolios without the need of managing physical property. By allowing investors to own fractions of it, REIT has become an affordable option, further helping to mobilise money from many retail investors. A fractional model or REIT allows investors to invest in premium commercial properties and earn a monthly rental yield. Through REIT, buyers can now manage and sell income-generating assets on an entirely online platform through a fractional investment model. Such properties can generate good rental yields besides offering an extremely promising appreciation.  The demand in the Indian real estate sector has always been outpacing the supply, especially in urban cities. REIT investments are witnessing a surge, especially in metro cities with IT professionals, which are mostly 85-95% tenanted, and even during the pandemic there were no significant exits from these properties. Since most of these are integrated complexes, the F&B outlets, food courts, and hotels in the complexes also contribute to the monthly income.  Any domestic, foreign, retail, or institutional investor can purchase REIT units. One can buy shares of REITs like any other shares on the stock exchange, through demat accounts and the buying and selling can be done on NSE or BSE, upon listing. To sum up, REITs or fractional investments are lucrative as they can generate good rental yield if planned wisely.           Click here to read more

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code