How Often Do REITs Pay Dividends In India?

Dividends are one of the most appealing aspects of investing in Real Estate Investment Trusts (REITs), offering investors a steady stream of income from high-quality real estate assets. With this growing interest, many investors often wonder how often do REITs pay dividends and what kind of returns they can realistically expect. 

Let’s explore how REIT dividend payouts work in India and what investors should keep in mind.

Do REITs Pay Dividends?

In India, most publicly listed REITs are required by the Securities and Exchange Board of India (SEBI) to distribute at least 90% of their taxable income to unitholders.

This regulation ensures that investors receive a significant portion of the revenue generated by the REITs’ properties — one of the key reasons the future of REITs in India looks promising for income-focused investors.

Here are the standard dividend payment frequencies:

1. Quarterly Payments: The majority of Indian REITs, such as Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust, adhere to a quarterly dividend payout schedule. 

For instance, Embassy Office Parks REIT has consistently paid dividends quarterly.

In the quarter ending June 2025, it declared a dividend of ₹5.80 per unit, translating to a dividend yield of approximately 5.58%.

2. Annual Payments: While less common, some REITs may opt for annual dividend payments. However, this is not the standard practice in India.

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How Much Dividend Do REITs Pay in India?

The dividend yield of a REIT is a key metric for investors seeking a steady income. 

In India, REITs typically offer annual dividend yields ranging between 5% and 7.5%, depending on factors like asset quality, occupancy rates, and management efficiency.

For investors focusing on dividend income, selecting REITs with a history of consistent and attractive dividend payouts is essential. 

Here are some of the top REITs in India known for their dividend performance:

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Factors Influencing Dividend Yields

• Asset Quality: REITs that own Grade-A office spaces or prime retail properties tend to generate higher rental incomes, resulting in better dividend payouts.
• Occupancy Rates: Higher occupancy rates indicate stable rental income, positively impacting dividend distributions.
• Debt Levels: REITs with manageable debt levels can allocate more income towards dividends, enhancing yields for investors.

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Are REITs Dividend Taxable in India?

Although REITs offer a good passive income source through dividends, it is important to consider taxes and other costs associated with the profit. 

In short, understanding the tax implications of REIT dividends is crucial for investors. 

In India, the taxation of REIT dividends is as follows:

• Dividends received from a REIT are taxable in the hands of the investor at their applicable income tax slab rate, only if the Special Purpose Vehicle (SPV) distributing the income has opted for the concessional corporate tax regime under Section 115BAA (i.e., 22% corporate tax rate).
• However, if the SPV has not opted for Section 115BAA, then the dividend income is tax-exempt in the hands of the investor.
• There is no Dividend Distribution Tax (DDT) on REIT dividends, since the DDT was abolished in the 2020 Union Budget.

Let’s say you invest in ABC REIT, which owns a portfolio of office buildings.
This REIT holds these properties through a Special Purpose Vehicle (SPV) — let’s call it ABC Developers Pvt. Ltd.

Now, there are two possible tax scenarios depending on the SPV’s choice under the Income Tax Act:

1. If ABC Developers opts for the concessional tax regime (Section 115BAA)
   • The SPV pays corporate tax at 22% (plus surcharge and cess).
   • Because it has opted for this lower tax rate, dividends distributed by the REIT become taxable in the hands of investors.
   • So, if you receive ₹10,000 as a dividend from ABC REIT, this amount will be added to your income and taxed as per your individual income tax slab.
2. If ABC Developers does not opt for Section 115BAA
   • The SPV pays tax at the normal corporate rate.
   • In this case, dividends received by REIT investors are exempt from tax in their hands.
   • So, the same ₹10,000 dividend would be tax-free for you.
     

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If you are interested in investing in REITs in India, then begin your journey now. To start, begin the process of opening a Demat account with a reliable stockbroker.

Still confused about choosing the right stockbroker? Fill in your details in the form below:

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Conclusion

REITs in India offer a compelling investment avenue for those seeking regular income through dividends. With most REITs paying dividends quarterly and offering attractive yields, they present an opportunity for investors to diversify their portfolios and earn passive income. 

However, it’s essential to consider factors like asset quality, occupancy rates, and tax implications before investing.

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FAQs

Q1. How often do REITs in India pay dividends?

Most REITs in India pay dividends quarterly, ensuring investors receive regular income. Some REITs may offer annual dividends, but quarterly payments are the most common practice among REITs.

Q2. What is the typical dividend yield for REITs in India?

REITs in India generally offer annual dividend yields ranging from 5% to 7.5%, depending on the quality of the underlying assets, occupancy rates, and tenant stability.

Q3. Can REIT dividends be relied upon for consistent income in India?

Yes, REITs are designed to provide consistent income through regular dividend payouts. However, dividend amounts may fluctuate based on the REIT’s performance and market conditions.