REITs will establish a new asset class & attractive for risk-averse investors as they get the double benefits of yield as well as capital appreciation. For developers, it would improve property market transparency, smoothen volatile property cycles, and potentially lower the cost of capital. Several other benefits are like REITsprovide an opportunity to invest in large scale commercial real estate, which would have otherwise been only possible for HNIs and wealthy individuals. REITs are mandated to provide recurring dividends, and most REIT legislations globally also put a cap on gearing (debt-to-asset) ratios, which reduces the risk perception associated with the asset class.

Further, tax concessions ensure that dividend payouts are healthy and less impacted by changes in central tax laws.

Asserted by Rajan Dang