1 Jun 2020

Real Estate Investment Trust (REITs) and Infrastructure Investment Trust (InvITs)Quick read

  • A Real Estate Investment Trust (REITs) is a trust registered under the Indian Trusts Act 1882
  • These manage a fund/corpus where the funds are invested in real estate property.
  • REITs pool small sums of money from a multitude of individual investors and then with that money purchase big real estate projects like commercial projects.
  • Individuals with less investment capacity cannot invest/purchase big commercial real estate projects individually/directly but through REITS it has been made possible.
  • REITs will also help the real estate industry which is currently plagued with problems such as weak demand, cash constraints, finished inventory etc. Now the developers will be able to sell their property to REITs and move on to the execution of new projects.
  • Infrastructure Investment Trust (InvITs) is exactly similar to REITS, but InvITs are for general infrastructure projects.
  • Both are regulated by SEBI

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