New Delhi, Dec 9 (IANS) Small and Medium Real Estate Investment Trusts (SM REITs) market in India is projected to exceed $75 billion, drawing from more than 500 million square feet of eligible office, logistics and retail assets, a report said on Tuesday.
Real estate consulting firm CBRE said in the report that premium Grade A+ office assets are expected to remain the core driver of investor interest. SM REITs are redefining India’s real estate investment landscape by creating a structured, transparent, and scalable framework for fractional ownership.
“This segment is anticipated to significantly deepen the institutionalisation of India’s commercial real estate. By bringing small-to-mid-sized assets under a regulated umbrella, SM REITs also have the potential to drive higher standards of property management, promote ESG compliance, and ultimately contribute to a more organised and efficient real estate ecosystem,” said Anshuman Magazine, Chairman and CEO, India, Southeast Asia, Middle East and Africa, CBRE.
REITs own, operate, or finance income-producing real estate across a range of sectors. They allow people to buy units, often with a relatively low minimum investment, allowing small investors to access high-value commercial real estate. SM REITs control mid‑sized properties, valued between Rs 50 crore and Rs 500 crore.
Investment-grade office assets, characterised by Grade A+ commercial specifications, often serve as the foundational pillars of a high-quality portfolio, it said.
Rami Kaushal, Managing Director, Consulting and Valuation Services, India, Middle East and Africa, CBRE, said that SM REITs can bridge a crucial gap between direct ownership and large-scale REITs.
"This structure could also enable investors to generate stable rental income and benefit from potential capital appreciation on high-quality assets. As the market evolves, the ability of stakeholders to navigate a nascent regulatory environment and adapt to policy refinements will be critical in this shift,” Kaushal said.
SM REITs could provide investors with democratised access to premium assets, offering stable passive income and capital appreciation, supported by liquidity through exchange listing and transparent governance mechanisms.
--IANS
aar/na