A REIT (real estate investment trust) lets you own a slice of rent-earning offices or malls through units that trade on the stock exchange, and pays most of its cash out to you every quarter. India now has five listed REITs. This guide compares them using each REIT's results for the quarter ended 30 June 2026 and unit prices from late September 2026. It explains how they work; it does not recommend any of them.
The Five Listed REITs at a Glance
| REIT | What it owns | Listed | Portfolio | Occupancy | Unit price | Annualised yield | Market cap (approx.) |
|---|---|---|---|---|---|---|---|
| Knowledge Realty Trust | Offices (Blackstone and Sattva) | Aug 2025 | 46 msf (37 msf completed), 6 cities | 93% | ₹113 | 6.0% | ₹50,000 Cr |
| Embassy Office Parks REIT | Offices (Embassy Group) | Apr 2019 | 43.5 msf completed, 52+ msf in total | 90% by area | ₹438 | 5.8% | ₹41,500 Cr |
| Mindspace Business Parks REIT | Offices (K Raheja Corp) | Aug 2020 | 46.2 msf leasable | 92–96% | ₹508 | 5.3% | ₹33,600 Cr |
| Brookfield India REIT | Offices (Brookfield) | Feb 2021 | 32.6 msf operating | 93% | ₹338 | 6.6% | ₹28,000 Cr |
| Nexus Select Trust | Malls (Blackstone) | May 2023 | 10.7 million sq ft, 19 centres in 15 cities | 96% leased | ₹166 | 5.9% | ₹25,100 Cr |
Portfolio, occupancy and distributions from each REIT's quarter ended 30 June 2026 results. Unit prices are exchange closes on 25–29 September 2026. Yield is the June-quarter distribution per unit × 4 ÷ unit price, a run-rate rather than a guaranteed figure. Market caps are approximate (units outstanding × price); for Knowledge Realty, Mindspace and Brookfield the unit counts are derived from distributions, so treat them as ±1%.
Together the five are worth roughly ₹1.78 lakh crore. Yields sit in a fairly narrow band of about 5.3% to 6.6% before tax.
The REITs One by One
Knowledge Realty Trust
The newest and, by market value, the largest REIT, listed on 18 August 2025 and co-sponsored by Blackstone and Sattva. It owns 29 office assets across six cities, 93% committed. As a newer REIT its track record of distributions is short.
Embassy Office Parks REIT
India's first REIT, listed in April 2019, and the largest office REIT in Asia by area. Bengaluru makes up about 75% of its portfolio value, which is its biggest concentration risk. In the June 2026 quarter its Bengaluru occupancy was 95%; its weakest market was Pune, at 59%. Net operating income rose 17% and distribution per unit 9% from a year earlier.
Mindspace Business Parks REIT
Offices in Hyderabad, the Mumbai region, Pune and Chennai, sponsored by the K Raheja Corp group, which holds about two-thirds of the units. Blackstone sold its stake in 2022. Its yield is currently the lowest of the five, at about 5.3%.
Brookfield India REIT
Offices in Mumbai, the National Capital Region, Kolkata and Bengaluru, with 32.6 million sq ft operating after recent acquisitions. It currently has the highest yield of the five, about 6.6%.
Nexus Select Trust
India's first retail REIT: 19 malls and consumption centres in 15 cities, including Select Citywalk in Delhi, Elante in Chandigarh and Seawoods in Navi Mumbai. Its income depends on shopping and leisure spending rather than office leasing, which makes it a useful diversifier alongside office REITs.
How REIT Payouts Are Taxed
Tax is the part of REITs that is easiest to misread. A REIT distribution is not one kind of income: it is a mix of components, each taxed differently, and the mix varies a lot between REITs.
| Component | How it is taxed in your hands |
|---|---|
| Interest | Added to your income and taxed at your slab rate |
| Dividend | Tax-free if the underlying company has not opted for the concessional corporate tax regime; taxed at your slab rate if it has |
| Repayment of debt | Not taxed when received, but it reduces your cost for capital gains. Once the total repayments you have received exceed what you paid for the units, the excess is taxed as other income (a rule introduced in 2023) |
The June 2026 quarter mix shows how different REITs are:
| REIT | Interest | Dividend | Repayment of debt |
|---|---|---|---|
| Embassy | 6% | 13% | 81% |
| Brookfield India | about 29% | about 17% | about 48% |
| Nexus Select | 43% | 35% | 22% |
| Knowledge Realty (March 2026 quarter) | — | 73% | 19% |
From each REIT's quarterly results. Brookfield's remaining ~6% is other components. Mindspace's split was not in the sources we checked. Each REIT publishes its split every quarter; check it before estimating your tax.
So a REIT paying mostly debt repayment, like Embassy, leaves you with very little taxable income each year for now, while one paying mostly interest is taxed much like a fixed deposit.
Selling your units
- Held for 12 months or less: gains taxed at 20%.
- Held for more than 12 months: gains taxed at 12.5%, with the ₹1.25 lakh yearly exemption shared with your equity gains.
These rates apply to listed REIT units bought and sold on the exchange. Section numbers changed when the Income-tax Act, 2025 took effect on 1 April 2026; the rates above did not.
REITs vs Buying Property Directly
| Listed REIT | Buying a flat or office | |
|---|---|---|
| Minimum investment | One unit: about ₹113–₹508 depending on the REIT | Lakhs to crores |
| Income | Distribution yield of about 5.3–6.6% before tax (September 2026) | Rent, minus maintenance, vacancy and tenant risk |
| Selling | On the exchange, settled next working day | Weeks to months, with brokerage and stamp duty |
| Diversification | Dozens of buildings and hundreds of tenants | One property, one tenant |
| Tax on sale | 20% short-term; 12.5% after 12 months | 12.5% without indexation after 24 months (property bought before 23 July 2024 can opt for 20% with indexation) |
At today's yields, ₹10 lakh spread across REITs would pay roughly ₹52,500–66,000 a year before tax, and ₹1 crore about ₹5.3–6.6 lakh. Distributions can rise or fall with occupancy and rents.
Risks to Understand
- Interest rates: REIT prices tend to fall when rates rise, because their yields compete with bonds. The RBI raised the repo rate from 4.00% to 6.50% between May 2022 and February 2023.
- Occupancy: office REITs were 90–96% occupied in June 2026, but weak markets drag: Embassy's Pune assets were 59% occupied.
- Concentration: each REIT is exposed to a few cities. Embassy's portfolio is about 75% Bengaluru by value.
- Sponsor and related-party dealings: sponsors often sell further assets into their REITs; check the price paid in each acquisition.
- Price swings: units trade like shares and can fall well below their underlying asset value in a sell-off.
How Much to Hold
REITs are an income and diversification tool, not a replacement for equity. I'd treat them as part of the real estate or fixed-income slice of a portfolio rather than a separate bet, and keep that slice small relative to equity. Holding more than one REIT spreads city and tenant risk, and combining an office REIT with Nexus adds exposure to retail spending rather than office leasing.
This guide explains how Indian REITs work and how they are taxed. It is not a recommendation to buy any specific REIT. Tax treatment depends on your circumstances; check each REIT's quarterly distribution statement and consult a tax adviser for large holdings.