Is the Small and Medium REIT Market in India Set to Surpass $75 Billion?
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Synopsis
The Small and Medium Real Estate Investment Trusts (SM REITs) market in India is on the brink of exceeding $75 billion, transforming the landscape for real estate investment with over 500 million square feet of assets. Discover how this shift is poised to enhance property management standards and promote responsible investment practices.
Key Takeaways
- Projected market value of SM REITs exceeds $75 billion.
- Focus on over 500 million square feet of eligible assets.
- Grade A+ office properties drive investor interest.
- SM REITs enhance property management standards and promote transparency.
- Provide democratized access to high-value commercial real estate.
New Delhi, Dec 9 (NationPress) The market for Small and Medium Real Estate Investment Trusts (SM REITs) in India is anticipated to go beyond $75 billion, leveraging over 500 million square feet of eligible office, logistics, and retail properties, according to a report released on Tuesday.
Real estate consultancy firm CBRE highlighted in the report that premium Grade A+ office assets are expected to continue being the primary catalyst for investor interest. SM REITs are transforming India's real estate investment framework by establishing a structured, transparent, and scalable model for fractional ownership.
“This segment is likely to substantially enhance the institutionalisation of India’s commercial real estate. By encompassing small-to-mid-sized assets under a regulated framework, SM REITs also possess the potential to elevate property management standards, encourage ESG compliance, and ultimately foster a more organised and efficient real estate ecosystem,” remarked Anshuman Magazine, Chairman and CEO for India, Southeast Asia, Middle East, and Africa at CBRE.
REITs manage, operate, or finance income-generating real estate across diverse sectors. They enable individuals to purchase units, often with a modest entry investment, allowing small-scale investors to tap into high-value commercial real estate. SM REITs focus on mid-sized properties valued between Rs 50 crore and Rs 500 crore.
Investment-grade office assets, exemplified by Grade A+ commercial specifications, frequently form the foundational elements of a premium portfolio, as noted in the report.
Rami Kaushal, Managing Director of Consulting and Valuation Services for India, Middle East, and Africa at CBRE, stated that SM REITs can fill a vital gap between direct ownership and large-scale REITs.
“This structure could allow investors to earn stable rental income and benefit from potential capital appreciation on high-quality assets. As the market progresses, the capacity of stakeholders to navigate a nascent regulatory landscape and adapt to policy changes will be pivotal in this transition,” Kaushal added.
SM REITs could democratise access to premium assets for investors, providing stable passive income and opportunities for capital appreciation, underpinned by liquidity through exchange listings and transparent governance frameworks.
Point of View
It is paramount to acknowledge the transformative potential of SM REITs in India's real estate sector. With a projected market value exceeding $75 billion, these investment trusts signify a shift towards greater transparency and institutionalization. It is essential for stakeholders to adapt and navigate these changes effectively, ensuring a sustainable and organized real estate ecosystem.
NationPress
09/12/2025
Frequently Asked Questions
What are SM REITs?
SM REITs, or Small and Medium Real Estate Investment Trusts, are investment vehicles that allow individuals to invest in income-generating real estate properties, particularly focusing on mid-sized assets.
How much is the SM REIT market in India projected to be worth?
The SM REIT market in India is projected to exceed $75 billion.
What types of properties do SM REITs focus on?
SM REITs primarily focus on office, logistics, and retail properties that qualify under the Grade A+ category.
What advantages do SM REITs offer to investors?
SM REITs provide investors with access to high-value commercial real estate, potential for stable rental income, and capital appreciation.
What is the significance of ESG compliance in SM REITs?
ESG compliance in SM REITs promotes environmental sustainability, social responsibility, and effective governance, enhancing overall property management standards.
