REITs and Fractional Ownership to Boost Retail Participation in 2026

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. 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.

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 Global Capability Centres (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 the National Capital Region (NCR).

Urban migration, a repo rate cut to 5.25%, RERA transparency, and infrastructure momentum fuelled residential dominance. The Dwarka Expressway corridor, Yamuna Expressway, and Tier 2 markets like Sonipat led premium sales velocity despite stock market swings. Whiteland Corporation’s 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, their project Urban Cube has benefited from increasing demand for premium, well-located retail and office spaces in Gurugram.

Luxury and branded residences dominated the theme in 2025, with premium sales surging and buyers prioritizing wellness. This momentum is expected to deepen in 2026. The market is embracing the trend of intergenerational living, which involves living spaces designed to unite the aspirations of different generations. 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.

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. 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.

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.

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. 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.

Tier II and Tier III cities have clearly emerged as serious contenders, especially since the last couple of years. 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.

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 high standard of living.