11:00 AM IST – SEBI has made a simple but powerful rule change for Real Estate Investment Trusts (REITs). From January 1, 2026, mutual funds and specialised investment funds will count their REIT holdings as equity investments, as per the SEBI REIT press release issued Nov 28, 2025.
This sounds like a small shift on paper. But earlier, REITs were not always allowed inside pure equity schemes. Because of that, fund houses kept their distance or added them only in tiny numbers. Now that they are treated like proper equities. It gives fund managers the freedom to add more of them. That freedom usually brings money with it.
For the REIT market, this means more attention, more buyers, and more confidence. For everyday investors, this means real estate exposure gets a little closer and a lot simpler.
What is a REIT?
A Real Estate Investment Trusts is a way to invest in big commercial properties like offices and malls without buying the property yourself. You can invest small amounts and earn from rent and property value. you can sell anytime on the stock market.
What changes from 2026
Before this move, if a mutual fund wanted to include a REIT, it had to place it under “hybrid” or “other” categories. Many didn’t bother.
But from January:
- REITs will count the same way as stocks
- There is no extra rule barrier
- Equity-based schemes can finally add them properly
This could open the door for heavy inflows, especially from big equity funds that were avoiding REITs only because of classification issues.
Why SEBI changed the rule
India’s commercial real estate scene is growing within just a few years. It counts more offices, more warehouses, more retail spaces. But buying property directly has always been expensive and stressful in this market. REITs fixed this issue by letting people invest small amounts or even SIP options, and still earn from real estate.
The issue was not with the REIT product. It was about who is allowed to invest how much. SEBI is now clearing that road.
- It also sends a message: Real estate investing should be simple and liquid
This move brings REITs into the (equity) market mainstream, instead of keeping them in a niche corner. it is like bond, which suddenly changed into lakhs into rupees.
What remains the same
This rule doesn’t change how REITs earn money. Their income still depends on:
- Buildings being occupied
- Rent is coming on time
- Market conditions
- Interest rates
And one more thing — this rule doesn’t include InvITs. Infrastructure Trusts will continue in the hybrid category. So treat REITs and InvITs as two separate things in your portfolio.
Easemoney View
For most Indians, owning property feels like a dream that keeps running away — high prices, huge loans, and zero liquidity. REITs solve a lot of that. You can enter with less money, exit anytime, and still enjoy the benefits of real estate growth.
Now that REITs are officially recognised as equity for funds, they will finally get the attention they deserve. More funds for buying means more liquidity. More liquidity means fair prices. Fair prices mean more trust.
This move won’t get big headlines everywhere, but over time, you will feel its impact in retail portfolios, SIP allocations, and how people plan for long-term wealth.
