India’s Real Estate Sector: Physical Property vs REITs — Making the Right Investment Choice
Government support and renewed investor confidence have helped India’s real estate sector recover steadily from the disruption caused by the pandemic. With the introduction of Real Estate Investment Trusts (REITs) as a regulated and liquid investment avenue, the question facing investors today is no longer whether to invest in real estate, but how to do so. The core dilemma now lies in choosing between traditional physical real estate and REIT-backed, market-linked instruments. Investing in Real Estate: A Dual-Return Opportunity Indian real estate investors today can structure their investments to earn both short-term income and long-term wealth appreciation, depending on their financial objectives. Rental income offers a relatively stable cash flow that typically increases over time and acts as a hedge against inflation. Capital appreciation, meanwhile, is largely driven by demand growth, infrastructure development, and economic expansion. To help investors navigate this evolving la...