The composition of wealth has become a priority for both individual and nation. Disposable income with better economic awareness and hunger for smart investments is leading to this change. While India adds about three people to the ultra-high net worth every day, the growing middle class (expected to reach one billion by 2030) is now starting to participate in the opportunities traditionally being accessed by institutional grade real estate investors.
In the past, if you own a professional property, you needed a huge capital, which was available for over-wealth and others could not even dare to think. Now, the Real Estate Investment Trust (RIIT) structures are democratizing investment in commercial real estate, which also accessible to those with ordinary money to invest in and convert a special property building asset class.
RIIT is a company that owns and manages real estate assets such as Offices Fisso and Malls, and in semi-annual, 90% cash flow must be paid, and invested in 80% of their portfolio rental assets.
RIT allows individuals to buy units in the stock exchange, enable them to invest in large -scale commercial real estate without direct ownership or managing.
Why is there more immediately than to keep the equipment for consisting property creation
The middle class of India is the stands at an important moment-to change the state of the market, to change moderate pay growth and inflation on long-term savings. While traditional devices, such as stable deposits, continue to provide 6-7%yielding, safety and stability, they cannot always fulfill the aspirations of mobile paying and upstairs.
Direct ownership in real estate, despite being attractive, often remains out of reach of many due to entry costs, fluid and regulatory barriers. This is where capital and innovation is the opportunity to come together and open a new, safer, more accessible and fluid investment way.
In terms of history, the revenue generating commercial real estate (CRE) was usually the defense of institutional and ultra-valent investors. With the introduction of RIIT, the middle class of India can only own the ownership of homes to the ownership of other income, such as malls, hotels, warehouses, etc., reesa has once unloaded OKED Cesses of the Special Asset Class, which has allowed India to grow in India.
Unlike traditional fixed deposits (FDS), REITO offers high returns, regular income by distributions, capital appreciation and liquidity, while still maintaining a strong safety profile.
For middle -class investors seeking a balance between stability and growth, REIT presents the ideal entry point in modern investment options. They generally guarantee tangible wealth with flexibility and diversification associated with financial instruments, organizing well with the growing financial goals of middle -income homes.
Five lesser known benefits of reits
- Protection against inflation: Built-in rental escalations (usually 5% annual) in RIIT lease provide powerful hedge against inflation over time
- Tax Efficiency: RIT Very tax-efficient, as it avoids double tax on the corporate level and the dividend component of distribution is tax-free in the hands of investors.
- Governance: Rates are strictly operated under SEBI rules. Independent trustees, ring-fencing assets, ceilings on debt levels, investment in only rent-generated wealth, distribution of 90% income and other rules related to related party transactions, investments, advertisements, etc. make RIIT a very secure product.
- SIP: REIT also allows investments through systematic investment plans (SIPs) on various platforms, helping investors to make wealth over time through regular contributions and rupee-cost benefits.
- Urban Growth Market Investments: RIIT will benefit from India’s urban infrastructure boom-increasing demand for Varhouses (fuel by e-CE Mars), Grade-A OFFICE FISE Spaces (powered by global capacity centers), and retail (stimulated consumption)
As India moves in the direction of becoming a $ 5 trillion economy, financial inclusion is important. In this regard, the REITs is not just another investment vehicle, it is capable of economic empowerment. By removing the gap between ambition and Bility cessability, RIIT is redefining how the middle class wealth of India creates.
For millions of Indians who want to go beyond FDS and fixed-income equipment, they are becoming a clever, safer and more durable choice for property making.
The RIIT Revolution is here and how Indian investors make wealth are changing. – one unit at a time.
(Author, Abhishek Agarwal is the chief financial officer in the Embassy Office Parks RIT)
(Disclaimer: The recommendations, suggestions, opinions and views given by experts are their own. This does not represent the views of the economic time)
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