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
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