Real estate has always remained the tried and tested method of generating wealth. All the high net worth individuals of the country have real estate property in their investment portfolio. To make this investment ritual easier for the mid-segment investors, the government came up with the Real Estate Investment Trusts (REIT) in the year 2014. They work as mutual funds; they pool in money from the small-scale investors and issue units in exchange that could be malls, office spaces or rental housing units.
When formed, the rules applied by the Securities Exchange Boards of India (SEBI) on the REIT were quite stringent. REITs had to raise money why Initial Public Offer (IPO) and they could only invest in competed commercial projects that are capable of generate income. However, in a recent affair, SEBI relaxed the rules on REITs so that investors can use this as a mode of parking their money into real estate even more efficiently. [Read more…]