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REITs and InVITs

Published: 25th Apr, 2024

Context

Real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) have garnered Rs 1.3 lakh crore in the past four years till March-end, and are expected to facilitate more pooled funds, as per the Reserve Bank.

About
  • Real Estate Investment Trusts(REITs) are the companies that finance, purchase, or manage commercial spaces that have the potential to generate an income. It is a legitimate way of investing in the real estate sector.
    • Example: Mall, shopping complexes, hotels, co-working spaces, and hospitals
  • Infrastructure Investment Trusts (InvITs) are vehicles that allow the investors to pool their capitals in the infrastructure sector and hold income-generating assets. IndiGrid and IRB are some of the registered InvITs.
    • Example: Roads, highways, power, gas pipelines, energy projects, etc. are some of the major examples of InvITs.
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