REITs Pay 50% More: Is Your Portfolio Missing Out?

India's five listed REITs paid out ₹8,900 crore to investors in FY26, a 50% jump from last year. REITs let ordinary Indians invest in commercial real estate and earn regular rental income — no need to buy a whole office building.

Here's what happened: India's five publicly listed REITs distributed over ₹8,900 crore to unitholders in FY26, up nearly 50% compared to the previous financial year.. These REITs collectively manage over 187 million square feet of commercial real estate — offices, malls, and warehouses across major Indian cities.. REITs are required by SEBI rules to distribute at least 90% of their net distributable cash flows to unitholders, making payouts mandatory and predictable..

What you should do: Check if your demat account allows REIT purchases — most major brokers like Zerodha, Groww, and Upstox support them; you can start with as little as one unit.. Compare the distribution yield of listed REITs (typically 6–8% annually) against your current FD rate to decide if REITs deserve a slot in your portfolio.. Review your asset allocation — if you have zero real estate exposure, allocating 5–10% of your investment portfolio to REITs adds diversification without a massive upfront cost..

REIT distributions have two tax components — interest income (taxed at your slab) and dividend (taxed at slab from FY22 onwards). Factor in your tax bracket before comparing REIT yield to FD returns.