Why Ultra-Rich Investors Are Choosing REITs in 2025

Meet Sakshi, a 29-year-old from Jaipur who married into a high-flying business family. While her in-laws casually discussed IPOs and tax havens over Sunday brunch, Sakshi used to sit there thinking, “Yeh kaunsa crypto-crypto ho raha hai yaar?”

But then came the plot twist. She decided to change the game. During her coffee breaks, she started reading about 

REITs—Real Estate Investment Trusts—and found a goldmine. She could invest in premier real estate with ₹50,000, get 

6% to 8% returns each year, and most importantly—‘bina kirayedaar ke jhanjhat’.

Fast forward to 2025—Sakshi has built a ₹2,00,00,000 portfolio featuring commercial properties in Gurugram and eco-friendly green malls in Bangalore. Her picks now generate a steady ₹12,00,000 to 15,00,000 in passive income per year without lifting a finger.

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Now at Diwali parties, even taauji asks her, “Sakshi beta, Nifty chhodo, REITs ka kya scene hai?”

And she just smiles and says, “REITs hi toh naya lit hai, taauji.”

The same girl who once thought ELSS was a skincare brand is now the investment GPS for the entire family.

This brings us to the question that is front and centre for most of the audience-

Why are all the ultra-wealthy coming to REITs in 2025?

What makes these real estate investment trusts the hottest property in the financial world?

Let's get to the bottom of the issue and learn why REITs are the asset class of choice for India's most prominent high-net-worth individual.

REITs 101: Paisa Banega, Par Smart Tarike Se

REITs (Real Estate Investment Trusts) are like mutual funds but in real estate. Rather than investing crores of money in real estate, you will invest a smaller amount and earn a share of premium commercial real estate like malls, office space, or hotels.

These are traded on the stock market and regulated by SEBI, so there is none of the shady builder drama. 

You earn rental income + property value appreciation.

Best REITs Leading the Indian Market in 2025

If REITs were Bollywood stars, these four would be the Khans of commercial real estate—gigantic, solid, and forever churning out box-office results:

• Embassy Office Parks REIT: The trendsetter! India's first and largest Real Estate Investment Trust (REIT), with prime office spaces across Bengaluru, Mumbai, Pune, and India's corporate business centre. Backed by Blackstone—yeh toh global level ka player hai, bhai.

• Mindspace Business Parks REIT: The king of the tech parks. This business park and IT park-focused REIT has a diversified portfolio across Tier I cities like Hyderabad, Pune, and Mumbai. Stable long-term MNC tenant base and good infrastructure.

• Brookfield India Real Estate Trust: The foreign wala trust with strong Canadian roots. Known for rock-solid corporate campuses, this REIT screams stability, strong governance, and global credibility.

• Nexus Select Trust REIT: India's first and only retail-focused REIT. It holds India's best malls in metro cities—aka India's shopping paradises. So basically, jab aap mall mein shopping kar rahe hote ho, Sakshi wahan se kama rahi hoti hai.
  
  Read More - Should You Buy a House or Rent in 2025?

For example, Sakshi began small in 2022—₹50,000 in Embassy Office Parks REIT.

The strategy? Dip one's toes.

By 2023, she also spotted an opportunity and invested another ₹5 lakhs in Mindspace REIT. She went all-in in 2024—₹20,00,000 in Brookfield REIT.

Total investment: ₹25,50,000.

Now, in the year 2025, her portfolio has reached ₹2,00,00,000 due to her sound choices and appreciation of real estate. She earns ₹12,00,000 to 15,00,000 in REIT dividends each year.

That is, she gets a passive monthly return of ₹1,00,000 to 1,25,000, with no work involved.

No tenants. No maintenance. No builder drama. Just solid, SEBI-regulated returns and peace of mind.

The Shift from Property Ownership to Paper Property

There was a time when flaunting money by owning 10 flats in Delhi, Mumbai, and Goa was good. 

Lekin 2025 mein? That's old school, bro.

India's ultra-rich have pressed the refresh button. The game has changed from tangible property to paper property—and here's why:

• Less liability, more liquidity – No longer frozen crores in idle assets.
• Zero. Maintenance stress – Na kirayedaar ka rona, na repair ka bawaal.
• Maximum transparency and instant diversification – One REIT unit = exposure to dozens of high-value assets.

Owning a REIT today is like holding shares in a ₹10,000 crore mall empire—without ever chasing rent or fixing pipelines.

But let's consider this—what if Sakshi had done the traditional thing and bought that Noida flat?

Would she still be flexing ₹1,00,000/month in passive income?

Naah. She did the math and made the smarter call. Here's a brief rundown of how her transition from traditional real estate to REITs was:

Sakshi made real estate a liability into liquid luxury, with no stress and paisa vasool returns.

India’s REIT Boom: Dekho Bhai, Numbers Jhoot Nahi Bolte

REITs have officially entered the big leagues in 2025. Once considered “niche”, they’re now the hottest choice for India’s high-net-worth investors. 

Why?

As of Feb 2025, India's four listed REITs' combined market cap has crossed ₹95,000 crore, indicating strong investor appetite. (IRA)

According to CRISIL, the Indian REIT segment is anticipated to grow at a 12–14% CAGR through 2028, with growing demand and returns.

Metropolitan cities like Mumbai, Bengaluru, and Gurugram are witnessing 85–90% commercial occupancy rates, which indicate strong realty performance. (FICCI)

SIP Mentality Meets Millionaire Strategy

India's ultra-high-net-worth individuals in 2025 are viewing REITs as real estate SIPs—small, frequent investments that become large in the long term, without the hassles of having physical property.

Family offices are utilising REITs for:

• Capital preservation for heirs
• Steady dividends for passive income
• Transparent, SEBI-regulated investing

They’re even making REITs a part of succession planning, replacing land disputes with clean, paper-based portfolios.

Sakshi's Example:

She started with ₹50,000/month in Embassy REIT in 2022. By 2025, she has invested a total of ₹18,00,000, and her portfolio is now ₹24,00,000, which pays her ₹1,60,000/year passively. 

"SIP wali strategy, millionaire wali calmness."

Diversification Ka King Move: REITs Zindabad!

Rule number 1 for building wealth? "Kabhi bhi saari biryani ek handi mein mat daalo."

And that's the very reason why REITs are dominating India's super-rich portfolios in 2025.

By investing in one REIT, you are exposed to many properties and diversified industries (office, retail, and warehousing) and less exposed to the whims of the stock market.

To illustrate with an example of how this is done in the real world, here is how Sakshi diversified her REIT business smartly:

With this mix, Sakshi now earns from offices, malls, and even warehouses—“ek teer, teen nishane.”

Debt Consolidation: Ek Teer, Do Nishane

Debt consolidation combines your several outstanding debts into a new loan with a single monthly payment and a reduced interest rate to help you lower your financial stress.

In 2025, India’s ultra-rich are thinking beyond just returns—they’re using REIT income to tackle their business loans. Smart move, stress-free life.

By putting passive income invested in REITs into loan prepayments, they're:

• Cutting down on interest costs
• Lowering the monthly EMI expense
• Enhancing their creditworthiness

For example, let’s look at Sakshi’s case study on how to consolidate multiple loans, minimise interest, and become financially independent again.

Before Consolidation

She used REIT income (₹1,82,000/year) to consolidate and repay aggressively.

After Consolidation with REIT Help

Impact at a Glance

• EMI decreased by ₹13,400/month
• Saved ₹1,60,000+ in interest over 3 years
• Credit score rose by 45+ points

"Loan bhi clear, stress bhi free."

SEBI’s Blessing = Ultra-Rich ka Bharosa

When crores are involved, even the tiniest financial red flags can cause ‘neend udd jaana’. That’s why India’s ultra-wealthy are leaning into REITs—because they come wrapped in SEBI’s safety net.

REITs in India are backed by:

• Mandatory public disclosures
• Quarterly audit reports
• Strict valuation methods
• SEBI-monitored governance structure

For investors such as Sakshi, this degree of transparency and regulation was the green light she was waiting for. With each SEBI audit and update, she became more confident—and so did her investments.

Due to SEBI-sponsored transparency, Sakshi did not require a CA to tell her whether the REIT was credible—she could read the numbers herself.

Her words?

“Agar SEBI dekh raha hai, toh hum bhi aaram se so sakte hain.”

Liquidity Bhi, Luxury Bhi: Best of Both Worlds

Traditional real estate may earn you bragging rights, but try to sell an apartment overnight and you'll realise they call it an "illiquid asset" for a reason. Introducing REITs—where luxury assets become liquid on demand.

Sakshi believed real estate meant being stuck with a property for years. This changed when she realised she could invest in Grade-A commercial properties in prime cities. 

Now, whenever she pleases, she'll be able to take her exit.

• No waiting for buyers.
• No shady brokers.
• No legal maze.

Just log in to your Demat, and boom—buy or sell REIT units like any regular stock.

Sakshi’s Flex Move: Real Estate on Her Terms

As Sakshi says, “Aaj kal luxury ka matlab hai—jab chaho paisa nikaal lo, bina stress ke.”

Also Read - How to Invest in Real Estate Crowdfunding Platforms

Tax Efficiency That Even CAs Are Clapping For

When you’re talking about multi-crore investments, every bit of tax planning matters. And that’s where REITs shine—paise bhi kamao, aur tax mein bhi bachat.

Here’s why India’s ultra-rich are all in on REITs for tax-smart investing:

• Dividend income is tax-free in the hands of investors if the REIT’s underlying SPV hasn’t opted for Section 115BAA’s concessional tax regime. (livemint.com)

• Long-term capital gains (after holding REIT units for over 36 months) are taxed at only 10% on gains over ₹1,00,000. (etmoney.com)

• No TDS is levied on dividend payments when the dividend is tax-free under the same provision. (livemint.com)

For example, after 3 years of steady investing, Sakshi utilised her REIT returns like a pro. Here's what her tax math was in FY 2024–25:

Total Tax Saved: ₹1,20,000

And according to Sakshi, “ITR bharte waqt is baar toh smile selfie layak thi!”

Conclusion: REITs—Not Just Real Estate, It's Real Smart

In 2025, the game is not merely about accumulating wealth—it's about doing so smartly. With consistent income, portfolio diversification, tax efficiency, and SEBI-supported transparency, REITs are becoming the preferred asset for India's high-net-worth individuals. Sakshi's story teaches you that you don't have to be a finance guru to make substantial investment choices—you just need clarity, courage, and consistency.

Now, having a slice of India's best commercial real estate doesn't require crores or hassle—just wise decisions and a demat account. 

Because the true luxury in 2025? Making more, stressing less.

REITs aren't investments—they're empowerment.

FAQs

• How frequently do REITs issue dividends?

Typically, quarterly or semi-annually, depending on the REIT.

• Do REITs assist with debt management?

Yes, they can facilitate timely loan repayments through regular income.

• Are REITs better than owning property?

They offer better liquidity and no maintenance hassles.

• Are REITs risky during a recession?

Top REITs with quality assets tend to stay stable.

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