A REIT pools investment in income-producing property. Unit prices and distributions can change. Regulation does not guarantee capital protection, a particular return or an immediate buyer.
Compare the cash-flow assumptions
The calculator below compares a property’s assumed rent less annual maintenance and taxes with an investment’s assumed distribution yield. It excludes acquisition costs, financing, personal tax, vacancies and changes in capital value. The result does not establish that either investment is universally better.
For example, a ₹30,00,000 property receiving ₹20,000 monthly rent with ₹30,000 annual costs produces ₹2,10,000 of annual cash flow in this simplified model. An investment of ₹30,00,000 at an assumed seven-percent annual distribution yield also produces ₹2,10,000. Equal assumptions produce a tie.
Illustrative cash-flow comparison
Physical Flat vs REIT: Income Calculator
Compare illustrative annual cash flow using your assumptions.
Physical Flat
REIT Portfolio
*Costs are reflected in the assumed distribution yield.Distributions and risk
A distribution is not necessarily all dividend income. Read the trust's declared distribution components and investor documents. Occupancy, collections, costs, debt and asset concentration can affect cash flow. Listed units can be traded, but the sale price and liquidity are not guaranteed.
Listed-unit capital-gain scope
For qualifying listed business-trust units, a holding period up to twelve months is short-term and more than twelve months is long-term. For qualifying transfers from 23 July 2024, the relevant sections provide twenty-percent short-term tax or 12.5-percent long-term tax on covered aggregate gains above ₹1,25,000, subject to STT and other conditions. Applicable cess and surcharge are additional. This is the stated section and date scope, not a complete tax calculation for every investor.
Tax on individual payout components needs separate assessment. Do not decide whether a dividend is exempt by looking only at the sponsor's or trust's tax regime. Check the relevant underlying-SPV conditions and law applicable to the distribution; a complete current payout-tax explanation is held for primary verification.
Small and medium REITs
The SM REIT framework was introduced in March 2024. Its scheme structure and conditions differ from a larger REIT. A regulation or minimum investment does not remove property, market or liquidity risk.
Sources: SEBI REIT regulations consolidated in April 2026; Income Tax Department Act viewer, sections 2(42A), 111A and 112A. The comparison is illustrative.
Last Updated on 4 weeks ago by Team Paisaseekho
