Comparison guide
REITs vs InvITs — Real Estate & Infra Investment Trusts Explained
REITs and InvITs let you own institutional-quality commercial real estate and infrastructure assets at ₹50 ticket size with quarterly cashflow.
// structure
REITs hold rent-yielding commercial real estate (offices, malls, warehouses). InvITs hold yield-bearing infrastructure (highways, transmission lines, telecom towers). Both are SEBI-regulated, distribute ≥90% of net cash to unit-holders.
// indian listings
REITs: Embassy Office Parks, Mindspace Business Parks, Brookfield India REIT, Nexus Select. InvITs: PowerGrid InvIT, IRB InvIT, IndiGrid, Bharat Highways InvIT. Yields range 5.5–9% depending on asset class.
// tax treatment
Distributions are a mix of interest (taxed at slab), dividend (taxable in your hands if the SPV did not pay tax under concessional regime), rent (slab), and return-of-capital (reduces cost basis, taxed when units are sold).
// frequently asked questions
Different exposure: REITs are commercial real estate (offices, malls) yielding 6–7%. A residential flat is residential real estate yielding 2–3% rental but with capital appreciation. Not a substitute, but a useful diversifier.