Best REITs in India 2026: A Comprehensive Investor’s Comparison

By the BlueSpidy Editorial Team | Updated February 2, 2026

If you are looking for a way to earn a “salary without a job,” you have likely come across our Ultimate Guide to Passive Income for Indian Professionals 2026. In that guide, we highlighted Real Estate Investment Trusts (REITs) as a cornerstone for any passive income portfolio.

However, in 2026, the market is no longer just about three or four big names. With the introduction of CPSE REITs in the Union Budget 2026 and the explosion of SM REITs (Small and Medium REITs), the choices can be overwhelming. In this deep dive, we compare the top-performing REITs in India to help you decide where to park your capital for maximum yield and safety.

What has changed for REITs in 2026?

Before we look at the list, it is essential to understand the two massive regulatory shifts that happened this year:

1. Equity Reclassification: As of January 1, 2026, SEBI officially reclassified REITs as “Equity-Related Instruments.” This allows Mutual Funds and Large Institutional Investors to invest more heavily, significantly increasing the liquidity of these stocks.

2. Budget 2026 “Asset Recycling”: The Finance Minister announced the creation of dedicated REITs for Central Public Sector Enterprises (CPSEs). This means you can now invest in government-owned infrastructure and office spaces with quasi-sovereign safety.

The Top 5 Listed REITs in India: 2026 Performance Analysis

1. Brookfield India Real Estate Trust (BIRET) – The Yield King

Brookfield remains the favorite for investors seeking high immediate cash flow.

• Sector Focus: Grade-A Office Parks in NCR, Mumbai, and Kolkata.

• Current Yield (2026): ~7.4%

• Key Advantage: Brookfield has been aggressive in acquisitions. Their recent integration of properties in Bengaluru has boosted their Net Distributable Cash Flow (NDCF) by 14% year-on-year.

• Risk Factor: Higher leverage (debt) compared to peers, though well within SEBI limits.

2. Mindspace Business Parks REIT – The Stability Play

If you prefer safety and high-quality tenants (Google, Amazon, Accenture), Mindspace is your go-to.

• Sector Focus: IT Parks in Hyderabad, Mumbai, and Chennai.

• Current Yield (2026): ~6.5%

• Key Advantage: They boast an impressive 90%+ occupancy rate. Their portfolio is concentrated in Hyderabad’s “Hitech City,” which remains the most resilient office market in India.

3. Nexus Select Trust – The Retail Powerhouse

The only retail-focused REIT in India, Nexus owns the malls you probably shop in.

• Sector Focus: 17 High-end Malls across 14 Indian cities.

• Current Yield (2026): ~5.5%

• Key Advantage: Unlike office REITs, Nexus benefits directly from the “Consumption Story.” As Indian middle-class spending increases, mall rentals rise.

• Risk Factor: Vulnerable to economic slowdowns that affect retail spending.

4. Embassy Office Parks REIT – The Pioneer

India’s first listed REIT still holds the most iconic assets like “Embassy Manyata” in Bengaluru.

• Current Yield (2026): ~5.9%

• Status: While the yield is slightly lower than Brookfield, the capital appreciation potential is higher due to the prime location of their land banks.

5. Knowledge Realty Trust (New Entry)

A Blackstone-backed REIT that listed in late 2025, focusing on specialized R&D and Life Sciences parks.

• Current Yield (2026): ~6.1%

• Why it’s unique: It’s the first REIT to focus on “Pharma and Tech Research” centers rather than general IT offices.

Understanding SM REITs: The New “₹10 Lakh” Club

A common question on BlueSpidy is: “What about fractional ownership?”

In 2026, SEBI formalized this through SM REITs. These allow you to invest in a specific “Scheme” (like a single warehouse or a data center).

• Entry Barrier: Minimum investment is ₹10 Lakh.

• Target Yields: Much higher than listed REITs, often ranging from 9% to 11%.

• The Catch: Liquidity is lower. While they are listed, finding a buyer for your units might take longer than selling a stock of Embassy or Mindspace.

Taxation: How much of your dividend do you keep?

The taxation of REITs is complex. In 2026, the distributions you receive are usually split into three parts:

1. Interest Income: Taxed at your slab rate.

2. Dividend Income: Tax-free if the SPV has not opted for the concessional tax regime; otherwise, taxed at your slab.

3. Repayment of Debt: Generally tax-exempt for the investor.

Investor Tip: Most Indian REITs now distribute roughly 30-40% of their payouts as “Repayment of Debt,” making them more tax-efficient than Fixed Deposits.

How to Build a REIT Portfolio for Passive Income

Don’t put all your eggs in one basket. A balanced 2026 REIT portfolio should look like this:

• 40% Office REITs (Mindspace/Embassy) for stability.

• 30% High-Yield REITs (Brookfield) for monthly cash.

• 20% Retail REITs (Nexus) for consumption growth.

• 10% SM REITs (If your budget allows) for alpha returns.

Conclusion: Is it still worth it in 2026?

With inflation hovering around 5%, a REIT portfolio yielding 6.5% to 7.5% + 3-4% capital appreciation provides a “Real Return” that beats traditional Savings Accounts and most Debt Funds.

Ready to take the next step?

Before you buy, check out our next cluster article: How to Analyze a REIT: FFO vs. Net Income.