Unlocking $48 Billion in Indian Office Space: The Rise of Fractional Ownership
India's fractional ownership market is expected to exceed $5 billion by 2030
Real EstateFractional OwnershipSm ReitOffice SpaceInvestment OpportunitiesMumbaiDelhi NcrBengaluruHbitsStrataProperty ShareJllReal Estate MumbaiMay 30, 2024
Major cities like Mumbai, Delhi NCR, and Bengaluru are leading the market, offering significant investment opportunities in well-leased office assets. The report highlights that Mumbai presents unparalleled opportunities for SM REITs, offering a healthy mix of well-leased large and mid-sized assets ideal for acquisition by Fractional Ownership Platforms.
Companies like Strata, hBits, and WiseX are already filing for the SM REIT (Small and Medium Real Estate Investment Trust) licence with SEBI. Shiv Parekh, Founder & CEO of hBits, said, Our initial offerings will feature SM REITs for new commercial assets valued between ₹75 crore to ₹100 crore, in Mumbai, Bengaluru, and Pune. Our overarching goal is to triple our Assets Under Management (AUM) from ₹365 crore to ₹1,000 crore by the end of the next fiscal.
Mumbai and Delhi NCR have emerged as top hotspots for asset acquisition under the SM REIT umbrella. Additionally, tech markets show notable growth potential, with attractive investment opportunities in well-leased mid-sized assets suitable for SM REITs.
India's fractional ownership market is witnessing exponential growth, currently valued at around $500 million and expected to surpass $5 billion in Assets Under Management (AUM) by 2030. The market is driven by the growth of SM REITs, which provide a tremendous opportunity to monetize income-generating assets that currently lack liquidity.
JLL is a leading global real estate services company specializing in commercial property and investment management. Property Share is a platform that enables fractional ownership of commercial real estate assets. hBits is a real estate investment platform that offers fractional ownership of commercial assets. Strata is a technology-enabled platform that allows individuals to invest in commercial real estate.
Frequently Asked Questions
What is the estimated value of office space available for investment in India?
$48 billion
What is the expected growth of India's fractional ownership market by 2030?
Surpassing $5 billion in Assets Under Management (AUM)
Which cities are leading the market for fractional ownership in India?
Mumbai Delhi NCR and Bengaluru
What is SM REIT and how does it benefit investors?
SM REIT stands for Small and Medium Real Estate Investment Trust which provides a platform for investors to monetize income-generating assets that currently lack liquidity
Which companies are already filing for the SM REIT licence in India?
Strata hBits and WiseX among others
Tags:
Related News Articles
WHO Expands Mpox Diagnostic Call as India Steps Up Preparation
The World Health Organization (WHO) has called on manufacturers of mpox in vitro diagnostics to participate in the Emergency Use Listing (EUL) process as the global burden of the disease grows. In India, the Indian Council of Medical Research (ICMR) and t
Ares Commercial Real Estate CFO Sells $22,839 in Stock
Ares Commercial Real Estate Corp's CFO has recently made a significant stock sale, raising questions about the company's financial strategies and future outlook. Meanwhile, the company has also revised its financial agreements with Citibank, as reported i
Cement Sector on the Rise: Strong Volume Growth and Price Hikes Boost Profits
The Indian cement industry is witnessing a resurgence, driven by robust volume growth, stable demand, and recent price hikes. Analysts predict a significant improvement in profitability, particularly in the second half of FY25.
Smart Homes, Smarter Investments: How IoT and AI Are Revolutionizing the Real Estate Market
The real estate industry is undergoing a significant transformation with the integration of cutting-edge technologies like IoT and AI. This article explores how these advancements are shaping the market and offering new opportunities for savvy investors.
Supreme Court Criticizes RERA's Functioning
The Supreme Court has expressed strong dissatisfaction with the functioning of the Real Estate Regulatory Authority (RERA), terming it as disappointing. The court's criticism highlights the need for better oversight and enforcement in the real estate sect
Oberoi Realty: Meeting the Needs of Modern Homeowners in the Luxury Real Estate Sector
As the luxury real estate market evolves, Oberoi Realty is staying ahead by anticipating the needs of modern homeowners. Discover how they are leading the way with innovative solutions and high-quality living spaces.