India's SM REITs Market Set to Boom, Expected to Exceed $60 Billion by 2026
The potential Small and Medium Real Estate Investment Trusts (SM REITs) market size in India is expected to exceed $60 billion by 2026, driven by growing interest in SM REITs and a maturing commercial real estate landscape.
Sm ReitsIndian Real EstateCommercial Real EstateCbre South Asia Pvt LtdReitsReal Estate PuneSep 05, 2024
The report estimates that the potential market for SM REITs in India is over 300 million sq. ft. of completed commercial office space, with an additional 50 million sq ft expected to be completed by 2026. This growth is driven by a growing interest in SM REITs, which are expected to play a key role in shaping the future of India's commercial real estate landscape.
Mumbai recorded the highest potential SM REIT-ready completed office stock of 75 million sq. ft. as of June'24, with around 10+ mn. sq. ft. of upcoming supply by 2026. Delhi-NCR recorded a completed SM REIT-ready potential stock of 70+ mn. sq. ft., followed by Bengaluru with 50+ mn. sq. ft. and Hyderabad with 30+ mn. sq. ft.
Other cities such as Pune, Kolkata, and Chennai recorded 25+ mn sq. ft. of completed supply as of June'24. It is estimated that Pune, Kolkata, and Chennai would cumulatively record additional supply of potential SM REIT-worthy stock of 14 mn. sq. ft. over the next two years.
The report highlights the importance of SM REITs, saying that the newly-introduced framework represents a significant step forward for India's fractional ownership landscape. Anshuman Magazine, Chairman and CEO, India, Southeast Asia, Middle East, and Africa, CBRE, said,
Frequently Asked Questions
What is the expected market size of SM REITs in India by 2026?
The potential market size of SM REITs in India is expected to exceed $60 billion by 2026.
What is the current completed office stock in India?
The total completed office stock in India currently stands at over 800 million sq. ft.
Which city has the highest potential SM REIT-ready completed office stock?
Mumbai recorded the highest potential SM REIT-ready completed office stock of 75 million sq. ft. as of June'24.
What is the significance of SM REITs in India's real estate landscape?
SM REITs are expected to play a key role in shaping the future of India's commercial real estate landscape by enhancing transparency and offering robust investor protections.
How do SM REITs benefit investors?
SM REITs offer the potential to unlock price discovery and exit opportunities for investors in smaller, high-occupancy assets.
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