Understanding Investor Behavior Towards REITS in India: A Qualitative Approach

DOI

10.2991/978-94-6239-685-2_24How to use a DOI?

Keywords

REITs [Real Estate Investment Trusts]; Investor behaviour; India’s REIT market; Investor perceptions; Financial literacy; Investment options; Regulatory challenges

Abstract

In India, Real Estate Investment Trusts [REITs] currently manage assets worth ₹1.52 lakh crore. However, retail investor participation remains low at just 4% as of 2024, even though the market is expected to grow to $200 billion by 2030 [19]. This study explores the behavioural reasons behind these challenges, specifically focusing on investors’ awareness levels, perceptions, and decision-making habits to suggest effective ways to boost REIT adoption in India’s growing market. Using a qualitative approach, this research brings together insights from focus group discussions held with a mix of investor types, such as salaried individuals and business professionals. It also includes in-depth interviews with fund managers, sales agents, and relationship managers. By involving multiple stakeholders, the study uncovers detailed insights into investor attitudes, the role of intermediaries, and how people view regulations, all of which shape the current state of India’s REIT market. Findings show a major gap in awareness that over 60% of retail investors don’t know about REITs or what they offer. Even among those who do, many view REITs as high-risk due to market difficulties, unclear regulations, and the product’s complexity. Contrary to widespread belief, high entry costs are not the main issue, as the minimum investment ranges from ₹10,000 to ₹50,000. Instead, it concerns how easy it is to buy or sell REITs. Most prefer familiar options like fixed deposits or mutual funds, which feel safer. Still, urban investors with better financial knowledge are more willing to consider REITs, especially when guided by skilled advisors. From the study, several propositions are made. Investor education should be of paramount importance if we are to increase the level of REITs adoption. Financial literacy and an understanding of how REITs work would have to be enhanced by awareness campaigns that target both institutional and retail investors. All these initiatives should be clear in describing the advantages of REITs, like the potential for generating steady income and having diversified investment portfolios. Financial institutions should try to alleviate any concerns that investors may have and do so while educating them in respect to risks, expected returns, and regulatory changes. Making these resources freely and easily accessible creates goodwill and enables investors’ wise decision-making. Furthermore, simplifying all regulatory communication would ease the investment path to REITs, especially from a tax and procedure perspective, as well as in terms of exit choices. Consequently, better clarity would alleviate doubts and spur more individuals to invest in REITs. The very aim of these policies is to shorten the gap between the strong potential of REITs and poor adoption and make the way for a more informed and investor-friendly environment. This study is important in that it provides a detailed understanding of the viewpoints of many stakeholders in India with reference to REITs and provides some useful suggestions from their perspective to investors, financial institutions, and policymakers. Raising awareness and simplifying the regulations will contribute to economic expansion and broader financial participation and realize the full benefits of REITs. Future studies can look at the long-term performance of REITs and their larger social and economic impact.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Riya Shah
AU  - Himanshu Prajapati
AU  - Purva Kathiriya
AU  - Karan Nilesh Radia
PY  - 2026
DA  - 2026/05/26
TI  - Understanding Investor Behavior Towards REITS in India: A Qualitative Approach
BT  - Proceedings of the International Conference on Infrastructure Development and Sustainability (ICIDS 2025)
PB  - Atlantis Press
SP  - 431
EP  - 446
SN  - 3005-155X
UR  - https://doi.org/10.2991/978-94-6239-685-2_24
DO  - 10.2991/978-94-6239-685-2_24
ID  - Shah2026
ER  -