Are Reits the right way to own top commercial real estate?
Subscribe to enjoy similar stories. Real estate has long been a favoured asset for Indian investors, but owning commercial property comes with high entry barriers. Large upfront capital, long-tenure loans, tenant management, maintenance hassles and illiquidity make direct ownership cumbersome.
Pratik Dantara, EPC member of the Indian REITs Association and chief investor relations officer and head of strategy at Nexus Select Trust, weighed in on whether Reits (Real Estate Investment Trusts) are the right alternative for accessing such premium property at the Mint Money Festival 2026. The analogy Dantara drew was that of mutual funds. “You invest small amounts, own income-generating properties across the country, earn rental income, and buy or sell units like equity." A Reit invests in rent-yielding commercial assets such as office parks and malls.
It is required to distribute 90% of its cash flows, typically on a quarterly basis. The structures are regulated by the Securities and Exchange Board of India (Sebi and professionally managed, removing operational hassles for investors. In India, the first Reit listed in 2019, and there are currently five listed Reits.
For investors, Reits promise to function as a hybrid between equity and fixed income. They offer relatively predictable cash flows through rental income, along with the potential for capital appreciation as property values rise and rents grow. Because they are listed, units can be bought and sold on exchanges, offering liquidity that physical real estate does not.
They can also serve as a diversification tool. Commercial real estate cycles do not always move in tandem with equity markets, making Reits a potential stabiliser within a broader portfolio. On returns,
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