India's SM REIT Market Poised to Surpass $75 Billion: CBRE Report
CBRE South Asia projects that India’s small and medium real estate investment trusts (SM REITs) market could exceed $75 billion, driven by over 500 million sq ft of eligible office, logistics, and retail assets.
Sm ReitsReal Estate InvestmentCbreSebiCommercial Real EstateReal Estate NewsDec 10, 2025
SM REITs, introduced under SEBI’s regulatory framework in 2024, allow fractional ownership of income-generating real estate, typically valued between ₹50 crore and ₹500 crore, enabling smaller investors to participate in commercial real estate.
CBRE said the segment could deepen the institutionalisation of mid-sized assets and improve transparency, property management standards, and ESG compliance. Premium grade A+ office assets are expected to remain the primary driver of investor interest.
Anshuman Magazine, chairman and CEO, India, Southeast Asia, Middle East & Africa, CBRE, said SM REITs offer a structured and scalable model that can significantly expand India’s real estate investment base. He added that regulated fractional ownership could support a more organised commercial real estate ecosystem.
Rami Kaushal, managing director, Consulting & Valuation Services, CBRE India, noted that SM REITs can bridge the gap between direct ownership and large-scale REITs, offering investors stable rental yields and potential capital appreciation. However, he said the segment’s long-term success hinges on how effectively stakeholders navigate the evolving regulatory framework.
According to the report, SM REITs could also benefit developers by enabling better capital recycling and improving access to diversified investor pools.
CBRE stated that the segment’s maturity will depend on strong governance, disclosure standards, and consistent performance, with investors expected to prioritise due diligence and asset quality.
Frequently Asked Questions
What are SM REITs?
SM REITs (Small and Medium Real Estate Investment Trusts) are financial instruments that allow fractional ownership of income-generating real estate assets, typically valued between ₹50 crore and ₹500 crore. They were introduced under SEBI’s regulatory framework in 2024.
What is the projected size of India's SM REIT market?
CBRE South Asia projects that India’s SM REIT market could exceed USD 75 billion, driven by over 500 million sq ft of eligible office, logistics, and retail assets.
How do SM REITs benefit investors?
SM REITs offer investors stable rental yields and potential capital appreciation. They provide a structured and scalable model for smaller investors to participate in commercial real estate, enhancing transparency and property management standards.
What are the key drivers of the SM REIT market in India?
The primary drivers include premium grade A+ office assets, strong governance, disclosure standards, and consistent performance. Developers can benefit from better capital recycling and access to diversified investor pools.
What challenges does the SM REIT market face?
The long-term success of the SM REIT market hinges on effectively navigating the evolving regulatory framework. Strong governance, disclosure standards, and consistent performance are crucial for investor confidence and market maturity.
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