REITs and Fractional Ownership to Revolutionize Retail Access to Real Estate in 2026

2026 is poised to be a transformative year for the Indian real estate market, particularly in terms of retail participation. After a year dominated by premium housing and institutional activity, the focus is shifting towards broader and more accessible investment opportunities. Praveen Sharma, CEO of REA India (Housing.com), sheds light on how Real Estate Investment Trusts (REITs) and regulated fractional ownership platforms are set to democratize access to institutional-grade real estate.

According to Sharma, the year 2026 will see a broadening of demand beyond just luxury and branded residences. While premium properties will continue to attract investors, there is a growing interest in larger-format mid-segment homes, particularly 3BHKs. This trend is driven by the hybrid work model and evolving lifestyle needs. Price stabilization in several markets is also encouraging serious end-users who were previously priced out to re-enter the market.

The role of technology in enhancing transparency and data-driven decision-making is becoming increasingly important. Buyers are demanding more information and are leveraging digital platforms to make informed choices. This shift is not only changing the way properties are bought and sold but is also improving the overall efficiency of the market.

Institutional and foreign capital inflows into Indian real estate are expected to remain strong in 2026. Investors are viewing the sector as a mature, income-generating asset class. Capital is likely to be directed towards Grade A office assets, logistics, data centers, and rent-yielding residential developments, particularly in markets with strong job creation and regulatory clarity such as NCR, Bengaluru, and Hyderabad. Yield visibility and long-term stability will be key considerations for investors.

REITs and fractional ownership will play a significant role in expanding retail participation in real estate. As awareness grows, investors are seeking stable yields, professional asset management, and liquidity, which REITs provide. Structured and regulated fractional ownership platforms are also gaining traction, particularly in commercial real estate, allowing retail investors to access institutional-grade assets.

Global Capability Centers (GCCs) are increasingly attracted to India due to its deep talent pool, scalable Grade A office infrastructure, and improving urban ecosystems. Cities like Bengaluru, Hyderabad, Pune, and NCR offer a compelling combination of talent availability, cost efficiency, and long-term growth visibility, encouraging larger and longer leasing commitments.

NCR has emerged as India’s strongest-performing housing market, with robust demand across both 2BHK and 3BHK configurations, particularly in Noida, Greater Noida, and Gurugram. Infrastructure upgrades, strong job creation, and sustained investor confidence are driving this momentum. However, affordability pressures in certain micro-markets remain a concern.

Tier-II and Tier-III cities are also emerging as serious contenders in the real estate market. Improved infrastructure, decentralization of employment, rising aspirations, and better quality of life are driving residential and commercial demand. Developers are responding with more organized supply, particularly in the affordable and mid-income segments.

Rental yields are expected to remain stable to marginally improve in 2026, especially in employment-led markets. With affordability challenges persisting in several metros, renting continues to be the preferred option for many households. Cities with strong job inflows such as Bengaluru, Hyderabad, and NCR are likely to see the healthiest rental demand and yield stability.

The key learnings from 2025 highlight that Indian real estate is entering a more mature, disciplined, and end-user-driven phase. While premium housing remained resilient, affordability emerged as a key challenge requiring policy support. The year also underscored the growing role of technology in driving transparency, trust, and informed decision-making, laying the foundation for sustainable long-term growth.