Investing in Residential and Commercial Real Estate
Investing in Residential and Commercial Real Estate
  • You can purchase a slice of a residential house as a tradable liquid security through Small and Medium (SM) REITs, as per Sebi’s notification.
  • Both residential and commercial REITs are allowed, but only for completed and revenue-generating properties.
  • The minimum ticket size is Rs 10 lakh, and you buy REIT units with the money going to SPV to purchase real estate.
  • The minimum REIT size is 50 cr, with a maximum of 500 cr, and a maximum 49% leverage.
  • The sponsor must put in 5% if there is no leverage, and 15% if there is leverage, with the skin in the game reducing after 5 years.

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