REITs Pay 50% More in FY26: Is Your ₹500 SIP Missing Out?

India's five listed REITs paid out ₹8,900 crore to investors in FY26, a 50% jump. REITs let regular investors earn rent income from office buildings and malls — starting with as little as ₹300–500 per unit on exchanges.

Here's what happened: India's listed REITs collectively distributed over ₹8,900 crore to unitholders in FY26, a 50% rise over the previous fiscal year.. These REITs together manage over 187 million square feet of commercial real estate — offices, malls, and business parks across major cities.. REIT distributions are mandatory — by law, REITs must pay out at least 90% of their net distributable cash flows to unitholders every quarter..

What you should do: Check current REIT unit prices on NSE/BSE — units of listed REITs like Embassy, Mindspace, and Nexus can be bought like stocks through your Demat account.. Compare REIT distribution yields (typically 6–8% annually) against your FD rates to see if adding REITs improves your passive income mix.. Start a SIP in a REIT Fund of Funds (available via mutual fund platforms) if you want exposure without picking individual REITs yourself..

REIT distributions have three components — interest, dividend, and return of capital — each taxed differently. The 'return of capital' portion is tax-free in your hands and reduces your cost basis instead.