India's SM REIT Market Poised to Surpass $75 Billion: CBRE Report
NEW DELHI: India’s small and medium real estate investment trusts (SM REITs) market has the potential to exceed USD 75 billion, backed by more than 500 million sq ft of eligible office, logistics, and retail assets, according to a report released by CBRE South Asia.
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.
