Investing in real estate can be done without purchasing physical land or property by investing in Real Estate Investment Trusts (REITs). REITs allow investors to invest in a portfolio of properties without directly owning land. By renting out the properties in the portfolio, investors can earn a consistent income. Prasad Sawant, head of advisory at IIFL Securities, compares investing in REITs to buying physical gold through sovereign gold bonds or digital gold.

SEBI has been regulating these types of investment trusts since 2007, and the first REIT was listed on the NSE in 2019. This allows investors to invest in lands, commercial buildings, and special economic zones with minimal risk and high liquidity.

As these REITs are listed on the exchange, they are governed by SEBI and do not require large sums of money to invest. Once listed, they can be traded like stocks, eliminating the need for paperwork. Investors can start with as little as Rs 10 to Rs 15,000.

Currently, Embassy Office Parks, Mindspace Business Parks, and Brookfield India Real Estate are the listed REITs. Embassy and Mindspace have a market capitalization of around Rs 20,000 crore, while Brookfield recently went public with a market capitalization of Rs 8,000 crore. These REITs are holding land totaling 30-40 million sq. ft. and generate regular income through rentals, which is distributed to investors. To start trading, investors need a DMAT account and can easily log into their broker’s account to begin investing.