Don't find residential rental yields attractive enough? Opt for REITs

Returns are likely to be higher, but payouts are not guaranteed and prices will fluctuate on exchanges

The Securities and Exchange Board of India (Sebi) board has approved the amendment to the Sebi (Real Estate Investment Trusts) Regulations, 2014. The revised application value in an initial public offer will now be Rs 10,000-15,000, while the revised trading lot on the secondary market will be one unit, down from 200 earlier.

These measures will make REIT more accessible. “Earlier, when the lot size was higher, institutional investors used to pre-dominate. Now, with the minimum investment required coming down, more retail investors will be able to participate,” says Subhankar Mitra, managing director, advisory services, Colliers India.

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