REITs and Fractional Ownership: Key Trends for 2026 in India's Real Estate

As India’s real estate market continues to mature, new investment structures are reshaping how both institutional and retail investors participate in the asset class. Speaking to Kshitij Anand of ETMarkets, Sudeep Bhatt, Director – Strategy at Whiteland Corporation, explains why REITs and fractional ownership platforms are set to play a much bigger role in 2026. He outlines how these regulated, transparent models are improving access to high-quality, income-generating real estate, enhancing liquidity, and channelising household savings into productive assets—ultimately broadening retail participation while strengthening the sector’s long-term stability. Edited Excerpts –

Thank you for having me. Despite the BSE Realty index experiencing volatility in 2025, the real estate market maintained its resilience. Residential sales remained strong throughout the year, particularly in premium segments, where buyers were focused on quality, location, and long-term value. On the commercial side, office leasing recorded one of its strongest years, majorly driven by GCCs and tech firms. Another key factor supporting the sector was infrastructure growth. Large-scale projects like expressways, metro expansions, and regional connectivity upgrades continued to unlock new micro markets, particularly in NCR. Urban migration, repo rate cut to 5.25%, RERA transparency, and infrastructure momentum fuelled residential dominance, with NCR's Dwarka Expressway corridor, Yamuna Expressway, and Tier 2 markets like Sonipat leading premium sales velocity despite stock market swings. Our project, Westin Residences Gurugram, developed in collaboration with Marriott International, continued to see strong interest due to its branded luxury and wellness-led project lifestyle offering. On the commercial side, our project Urban Cube has benefited from increasing demand for premium, well-located retail and office spaces in Gurugram.

Luxury and branded residences undoubtedly led in 2025, with premium sales surging and buyers prioritizing wellness. I believe this momentum will only deepen in 2026. What we're seeing is a clear shift in buyer mindset from owning a home to experiencing a lifestyle. Today's premium buyer is far more discerning and globally exposed, reshaping how luxury is defined. The market is embracing the trend of intergenerational living, which involves living spaces designed to unite the aspirations of different generations. It ensures that every age group has their own space, allowing families to reconnect without making compromises. In 2026, premiumisation will continue but with greater emphasis on experience-led living. Branded residences, particularly those partnered with global hospitality brands, are becoming more mainstream because they offer consistency, professional management, and a sense of global living. Buyers also see value in stronger resale potential and rental demand for such assets. Homes are now expected to support physical and mental well-being through biophilic design, open spaces, fitness infrastructure, and curated wellness amenities. Sustainability is another major driver. Buyers are increasingly conscious of energy efficiency, green certifications, and environmentally responsible construction, even in the luxury segment. We're also seeing rising interest in larger, thoughtfully planned developments along infrastructure corridors such as the Dwarka Expressway, the new growth corridor. Here, buyers get scale, privacy, and a like-minded community living together. Smart-home technology, automation, and advanced security will move from being optional to essential. At Whiteland Corporation, our project Westin Residences in collaboration with Marriott International exemplifies this with five-star hospitality, wellness features, and award-winning branded excellence. This project aligns perfectly with the evolving preferences of HNIs and NRIs who seek experiential living.

Yes, I believe 2026 will be a stronger year for institutional and foreign capital inflows into Indian real estate. Global investors continue to view India as a long-term growth market, supported by strong economic fundamentals, improving transparency, and a more mature regulatory framework. What has changed significantly over the years is investor focus. Today, capital is far more selective and disciplined. Investors are prioritizing ESG-compliant assets, sustainability-led developments, and projects with strong governance and execution track records. There is also growing interest in alternative asset classes such as logistics, data centers, healthcare real estate, and premium residential developments in high-growth urban markets. Another important trend is the preference for structured and regulated investment platforms like REITs and SM-REITs, which offer liquidity, transparency, and predictable yields. Foreign investors, in particular, are keen on partnering with established developers who understand local markets and can manage execution risks effectively. Overall, capital in 2026 will chase quality, governance, and long-term stability rather than short-term gains. Developers who align with these expectations will continue to attract strong investor interest.

REITs and fractional ownership are set to play a much larger role in 2026. These platforms are making high-quality real estate more accessible, transparent, and liquid for a wider pool of investors. Listed REITs are likely to continue expanding their portfolios, particularly in office and mixed-use assets, while SM-REITs are expected to gain traction across offices, retail, logistics, and data centers. This allows investors to participate in smaller, income-generating assets that were previously out of reach. Fractional ownership, when structured and regulated properly, also appeals to younger investors and HNIs who want exposure to Grade A real estate without committing large ticket sizes. Importantly, these models help channel retail savings into productive yield-generating assets. Overall, REITs and fractional platforms will improve market depth, enhance liquidity, and bring greater stability to the sector in 2026.

India's rise as a global GCC hub is driven by a combination of talent, cost efficiency, and improving infrastructure. Companies today are not just setting up back offices; they are building innovation, R&D, and strategic operations here. A large skilled workforce, strong digital infrastructure, and a supportive business environment continue to make India highly attractive. GCCs are also increasingly focused on sustainability, flexibility, and employee well-being, which is influencing office design and location choices.

NCR continues to be one of the most dynamic real estate markets in the country, and what's interesting is how buyer preferences have evolved over the last couple of years. Today, demand is clearly shifted towards premium, well-planned developments rather than standalone projects. Buyers are looking for gated communities, branded residences, and integrated developments that offer a complete lifestyle. One of the biggest trends in NCR is the growing importance of infrastructure-led micro markets. Corridors such as Dwarka Expressway, Southern Peripheral Road, and areas benefiting from metro expansions are seeing heightened interest. Improved connectivity has significantly reduced perceived distance, making these locations far more attractive to both end-users and investors. Another strong trend is the emphasis on sustainability and wellness. Buyers now actively ask about green certifications, energy efficiency, air quality, open spaces, and wellness amenities. Smart home features, security systems, and technology integration are no longer add-ons; they are expected as standard. Luxury housing in NCR has also become far more globally benchmarked. Buyers are well-traveled and digitally informed, which means expectations around design, amenities, and services are much higher. This has led to increased interest in branded residences and hospitality-led living. Our project, The Aspen Gurugram, caters to buyers seeking exclusivity, design excellence, and global living standards through its sky home concept. Westin Residences Gurugram has set a new benchmark for branded luxury and wellness-led living. Overall, NCR remains resilient, aspirational, and future-ready.

Yes, Tier II and Tier III cities have clearly emerged as serious contenders, especially since the last couple of years. What we're witnessing is a structural shift rather than a temporary trend. Improved infrastructure, decentralization of jobs, and rising disposable incomes are fundamentally changing the real estate landscape in these markets. Several Tier II cities are now benefiting from expressways, regional airports, industrial corridors, and improved metro connectivity. This has significantly enhanced their attractiveness for both residential and commercial development. Additionally, companies, especially in manufacturing, IT services, and logistics, are increasingly setting up operations beyond metros to optimize costs and tap local talent pools. Residential demand in these cities is being driven by aspirational homebuyers who want better quality housing, larger homes, and community living often at a fraction of metro prices. Retail and mixed-use developments are also gaining traction as consumption patterns evolve. At Whiteland Corporation, our current focus remains in Delhi NCR. Our experience with premium developments like The Aspen and Westin Residences Gurugram has given us a strong foundation in delivering quality-led projects, an approach that can translate well into emerging markets when the timing and opportunity align.

Rental yields are expected to improve steadily in 2026, particularly in well-located, high-quality residential and commercial assets. Over the past few years, we've seen capital values rise sharply, but rental markets are now catching up, especially in premium segments. In residential real estate, branded residences and luxury homes in prime locations are seeing growing rental demand from corporate executives, families, and HNIs. Tenants are willing to pay a premium for professionally managed properties, superior amenities, and a premium living experience. On the commercial side, office spaces in prime locations with modern amenities and sustainable features are also seeing increased rental demand. The growing trend of hybrid work models is expected to further drive demand for well-managed, high-quality office spaces.