Investment in REITs brings the following advantages;
- Helps in portfolio diversification
- Easy entry and exit routes as listed REITs are tradable instruments on exchange.
- Less risky than a direct investment in real estate properties
- Comparatively more liquid than direct property investment
- Regular dividend income as REITs has to distribute at least 90% of their earnings.
- Affordable and cheaper alternative to invest in the real estate market as ticket size is low.
- REITs are regulated by SEBI so the chances of fraud are low.