Billions of Dollars Worth of Office Space Up for Grabs in India's Real Estate Market
India's fractional ownership market is expected to exceed $5 billion by 2030
Real EstateSm ReitFractional OwnershipIndiaInvestmentReal Estate NewsMay 30, 2024
The report highlights that many players in the fractional ownership market are filing for the SM REIT (Small and Medium Real Estate Investment Trust) licence with SEBI. Companies like Strata have already filed for the licence, while others like hBits and WiseX are in the process of doing so.
Mumbai and Delhi NCR have emerged as top hotspots for asset acquisition under the SM REIT umbrella. Additionally, tech markets show notable growth potential, with attractive investment opportunities in well-leased mid-sized assets suitable for SM REITs.
Mumbai, Delhi NCR, and Bengaluru lead the SM REIT market, representing 73% of assets in the top seven city office sectors. Dr Samantak Das, Chief Economist & Head of Research and REIS, India, JLL, noted that Mumbai presents unparalleled opportunities for SM REITs, offering a healthy mix of well-leased large and mid-sized assets ideal for acquisition by Fractional Ownership Platforms.
Kunal Moktan, Co-founder & CEO of Property Share, added that through the SM REIT regulations, SEBI has effectively introduced an entirely new asset class to the retail and institutional investor universe.
Mumbai leads with a $9 billion opportunity for SM REITs, followed by Delhi NCR. Both cities offer well-managed portfolios of small and mid-sized leased assets under a strata-ownership model. Gurugram dominates the Delhi NCR office segment, capturing 61% of the SM REIT market, with significant opportunities in commercial corridors like Golf Course Extension and MG Road presenting a $3 billion investment potential.
JLL is a leading international property consultancy, and Property Share is a fractional ownership platform that provides investors with an opportunity to invest in commercial real estate.
JLL is a global real estate services firm specializing in commercial property and investment management, while Property Share is an innovative platform that enables individuals to invest in commercial real estate.
Frequently Asked Questions
What is the projected value of India's fractional ownership market by 2030?
$5 billion
Which cities are leading the SM REIT market in India?
Mumbai Delhi NCR and Bengaluru
What is the total value of office assets available for investment in India?
$48 billion
What is the goal of hBits a fractional ownership platform?
To triple its Assets Under Management (AUM) from ₹365 crore to ₹1 000 crore by the end of the next fiscal
What is the significance of SM REITs in India's real estate market?
SM REITs provide a tremendous opportunity to monetise income-generating assets that currently lack liquidity and have the potential to transform the real estate investment landscape in India
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