Fractional Realty: India's Next Big Investment Opportunity

Small and Medium Real Estate Investment Trusts (SM REITs) are revolutionizing the way Indians invest in real estate.

Fractional OwnershipSm ReitsReal Estate InvestmentMumbaiDelhi NcrBengaluruHyderabadReal EstateMay 29, 2024

Fractional Realty: India's Next Big Investment Opportunity
Real Estate:The Indian real estate market is on the cusp of a revolution, with Small and Medium Real Estate Investment Trusts (SM REITs) offering a new way for small and medium investors to own a share of high-value assets.

Fractional ownership, a concept where multiple investors collectively own a share or fraction of a high-value asset, is the underlying principle of SM REITs. This allows investors to own a part of a high-value asset, such as commercial real estate, without having to buy the entire property.

The SM REIT market is projected to grow over 10 times and exceed USD 5 billion by 2030, according to a recent report by JLL and Property Share. With a vast portfolio of over 328 million sq ft of office assets valued at approximately USD 48 billion, the potential for investment in this sector is tremendous.

Mumbai, Delhi NCR, and Bengaluru are leading the way in terms of investment prospects, with Mumbai offering a USD 9 billion opportunity for SM REITs. Hyderabad is also emerging as a hotspot, with a USD 3.7 billion opportunity.

The robust demand for rent-yielding assets and the presence of a professionally managed platform make SM REITs an enticing choice for retail investors. Considering the high capital values in Mumbai, SM REITs prove to be a superior option over smaller office formats, eliminating the increased costs associated with acquiring and managing such properties.

Small and Medium Real Estate Investment Trusts (SM REITs) are established in pursuit of fractional ownership in the real estate sector for small and medium investors.

JLL is a leading professional services firm specializing in real estate and investment management. Property Share is a fractional ownership platform that provides an opportunity for small and medium investors to invest in high-value assets.

Frequently Asked Questions

What is fractional ownership?

Fractional ownership is a concept where multiple investors collectively own a share or fraction of a high-value asset such as commercial real estate without having to buy the entire property

What is the potential of the SM REIT market in India?

The SM REIT market is projected to grow over 10 times and exceed USD 5 billion by 2030

Which cities are leading the way in terms of investment prospects for SM REITs?

Mumbai Delhi NCR Bengaluru and Hyderabad are leading the way in terms of investment prospects

What is the advantage of SM REITs over smaller office formats?

SM REITs prove to be a superior option over smaller office formats eliminating the increased costs associated with acquiring and managing such properties

What is the role of JLL and Property Share in the SM REIT market?

JLL is a leading professional services firm specializing in real estate and investment management and Property Share is a fractional ownership platform that provides an opportunity for small and medium investors to invest in high-value assets

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