CBRE Report Forecasts Potential SM REIT Market in India to Exceed USD 60 Billion by 2026

Mumbai, Delhi-NCR, Bengaluru, and Hyderabad Lead the Way with Highest Potential

New Delhi / September 4, 2024: A new report by CBRE South Asia Pvt. Ltd. predicts that the potential market size for Small and Medium Real Estate Investment Trusts (SM REITs) in India could surpass USD 60 billion by 2026. The report titled, “Navigating the SM REIT Landscape – A Look at Regulations and Implications,” highlights the growing interest in SM REITs and their potential to shape India’s commercial real estate landscape.

According to CBRE’s estimates, the potential market for SM REITs in India is over 300 million sq. ft. of completed commercial office space, with an additional 50 million sq. ft. expected to be completed by 2026. Mumbai leads the way with the highest potential SM REIT-ready completed office stock at approximately 75 million sq. ft. as of June 2024, followed by Delhi-NCR, Bengaluru, and Hyderabad.

The introduction of the SM REIT framework is seen as a significant step for India’s fractional ownership landscape. It is expected to foster greater transparency, attract new investors, and mitigate risks associated with under-construction projects. The framework also ensures steady returns through mandatory quarterly distributions, making real estate a more accessible and secure investment option for a broader range of investors.

Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, stated, “The introduction of the SM REITs framework marks a turning point for India’s commercial real estate sector.” Rami Kaushal, Managing Director, Consulting & Valuation Services, India, Middle East & Africa, CBRE, added, “The alignment of SM REITs with recent tax reforms is a game-changer for the investment landscape.”