What are REITs and InvITs? A Complete Guide to Understanding REITs and InvITs in India

This article serves as a comprehensive guide to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), two SEBI-regulated vehicles that have democratized access to India's premium physical assets. It explains that while REITs focus on income-generating commercial properties like Grade-A office parks and malls, InvITs target infrastructure projects such as highways and power grids. Both structures are required by law to distribute at least 90% of their net cash flow to unitholders, providing a reliable source of quarterly income. The piece highlights a significant 2025 regulatory shift reclassifying REITs as equity instruments, which has expanded their investor base. Additionally, it demystifies "REIT IPO GMP" (Grey Market Premium) as an informal sentiment indicator for new listings. With entry points as low as ₹10,000 via standard Demat accounts, these instruments offer liquidity and institutional-grade transparency, making them essential modern tools for retail investors seeking stable returns from the growth of India’s commercial and infrastructure landscapes.