India's Fractional Ownership Market Set to Boom: Top 3 Hotspots to Watch
The JLL – Property Share report highlights the immense growth potential of India's real estate fractional ownership market
Fractional OwnershipReal EstateSm ReitIndiaInvestmentMarket GrowthReal Estate NewsMay 29, 2024
SM REITs are established to provide fractional ownership in the real estate sector for small and medium investors. They differ from conventional REITs in terms of scale and focus, allowing for the collection of funds starting from Rs 50 crore and up to Rs 500 crore from a minimum 200 investors.
Mumbai leads the SM REIT market, offering a vast portfolio of over 328 million sq ft of office assets valued at approximately USD 48 billion, suitable for SM REIT investment. Delhi NCR and Bengaluru follow closely, with significant investment opportunities in well-leased mid-sized assets.
The report highlights the securitization of real estate assets, with SM REITs providing a tremendous opportunity to monetize income-generating assets that currently lack liquidity. Paired with technology, SM REITs have the potential to transform the real estate investment landscape in the country.
Kunal Moktan, Co-founder & CEO of Property Share, stated that SM REIT regulations have introduced a new asset class to the retail and institutional investor universe, continuing the march towards securitization of real estate assets.
India's real estate sector has been witnessing significant changes in recent years, with the introduction of new regulations and investment options. The concept of fractional ownership has been gaining traction, providing an opportunity for small and medium investors to invest in high-value assets.
JLL is a leading international property consultancy, providing comprehensive real estate services to clients globally. Property Share is India's first and largest fractional ownership platform, providing investment opportunities in commercial real estate.
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 real estate without having to buy the entire property
What are SM REITs?
SM REITs are Small and Medium Real Estate Investment Trusts established to provide fractional ownership in the real estate sector for small and medium investors
What is the growth potential of India's fractional ownership market?
India's fractional ownership market is expected to grow exponentially and surpass USD 5 billion in assets under management (AUM) by 2030
Which cities are leading the SM REIT market in India?
Mumbai Delhi NCR and Bengaluru have emerged as the top three markets for investors seeking opportunities in SM REITs
What is the role of technology in SM REITs?
Technology has the potential to transform the real estate investment landscape in the country paired with SM REITs providing a tremendous opportunity to monetize income-generating assets that currently lack liquidity
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