The Indian real estate market is witnessing a significant shift towards Small and Medium Real Estate Investment Trusts (SM REITs), with Mumbai, Delhi NCR, and Bengaluru emerging as prime hotspots for investment opportunities, as revealed by recent findings from a JLL – Property Share Report.
Projected to grow over 10 times and exceed $5 billion by 2030, the fractional ownership market in India is gaining traction rapidly. With a vast portfolio of over 328 million sq-ft of office assets valued at approximately $48 billion deemed suitable for SM REIT investment, the potential for growth in this sector is immense. According to the report, Mumbai and Delhi NCR have emerged as top destinations for asset acquisition opportunities under the SM REIT umbrella. The tech markets, particularly Bengaluru, also exhibit notable growth potential, offering attractive investment opportunities in well-leased mid-sized assets conducive to SM REITs.
Mumbai leads the pack with a $9 billion opportunity for SM REITs, closely followed by Delhi NCR. Both cities boast well-managed portfolios of small and mid-sized leased assets, presenting significant investment opportunities under a strata ownership model. In Bengaluru, although the city’s robust office ecosystem supports the availability of relevant assets for SM REITs, opportunities stand at around 1/4th of the total Grade A office stock. However, prime corridors like the ORR Southeast stretch and Whitefield offer substantial investment potential.
Similarly, Hyderabad, driven by its booming Grade A office stock and strong global demand, presents healthy opportunities for SM REITs, particularly in assets located in the Hitec and Gachibowli corridors. Despite regulatory compliance challenges, India’s fractional ownership market is poised for exponential growth, with the potential to surpass $5 billion in assets under management by 2030. The JLL – Property Share report underscores the immense growth prospects of India’s real estate fractional ownership market, offering valuable insights for investors seeking opportunities in Mumbai, Delhi NCR, Bengaluru, and Hyderabad.
