REITs: Real Estate Beginners Gateway. Real Estate Investment Trusts (REITs) let you invest in commercial properties like office spaces, malls, etc.āwithout actually owning them. You get a share of the rent collected, just like dividends. Globally, in the US and UK, REITs are a mature market. Stable, tax-efficient, and investor-friendly. In the US, REITs are a common tool in retirement portfolios. In the UK, theyāre exempt from corp tax on rental incomeāmassively attractive. India introduced REITs in 2014. We have a few listed, mostly from big players. The dividend payout rule (90% of taxable income) makes them a great passive income option. But adoption is still low. What needs to change? ⢠Better awareness ⢠Friendlier regulations ⢠More institutional participation SEBI is already pushing mutual funds to invest more in REITs. Thatās a good start.
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