The Indian real estate landscape is undergoing a transformative phase with a notable pivot towards Small and Medium Real Estate Investment Trusts (SM REITs). Recent findings from a JLL – Property Share Report highlight that Mumbai, Delhi NCR, and Bengaluru are emerging as prime hotspots for investment opportunities. The fractional ownership market in India is projected to expand over tenfold, surpassing $5 billion by 2030, indicating a robust appetite for these investment models among Indian investors.
Mumbai stands out as a leading destination for SM REIT investments, presenting a lucrative $9 billion opportunity. Both Mumbai and Delhi NCR boast well-managed portfolios of small and mid-sized leased assets, making them attractive under a strata ownership model. Meanwhile, Bengaluru’s thriving tech ecosystem is also showing promising growth potential, although it accounts for approximately one-fourth of the total Grade A office stock available for SM REITs. Prime areas like the Outer Ring Road (ORR) Southeast stretch and Whitefield are particularly ripe for investment, providing conducive environments for fractional ownership models.
In addition to these metropolitan hubs, Hyderabad is carving out its niche, propelled by a strong demand for Grade A office space in key corridors like Hitec and Gachibowli. The diverse asset availability and the ongoing urban development in these regions foster a vibrant real estate market conducive to investment. As cities evolve and expand, the potential for SM REITs to thrive in these environments becomes increasingly apparent, catering to the rising demand for modern, flexible real estate solutions.
Sustainability remains a crucial theme in the growth of the fractional ownership market. By enabling smaller investors to participate in the real estate sector, SM REITs not only democratise investment but also promote the development of eco-friendly infrastructure. Sustainable practices in urban planning and development will be key to attracting environmentally conscious investors, aligning with global trends toward greener investments. The JLL – Property Share report underscores the significant prospects within India’s fractional ownership market, positioning Mumbai, Delhi NCR, Bengaluru, and Hyderabad as strategic locations for stakeholders aiming to capitalise on this evolving trend while contributing to a sustainable future.
