New Delhi, Dec 9 ( LatestNewsX ) – The market for Small and Medium Real Estate Investment Trusts (SM REITs) in India is expected to surpass $75 billion, tapping into over 500 million sq ft of qualified office, logistics and retail space, according to a latest analysis.
CBRE, in its report, highlighted that Grade A+ office assets will continue to anchor investor appetite. By bringing smaller‑to‑mid‑sized properties onto a regulated, transparent platform, SM REITs are reshaping how investors engage with the commercial real estate sector.
“This segment is anticipated to significantly deepen the institutionalisation of India’s commercial real estate. By bringing small-to‑mid‑sized assets under a regulated umbrella, SM REITs also have the potential to drive higher standards of property management, promote ESG compliance, and ultimately contribute to a more organized and efficient real estate ecosystem,” said Anshuman Magazine, Chairman and CEO, India, Southeast Asia, Middle East and Africa, CBRE.
REITs acquire, manage, or finance income‑generating property across various sectors, letting investors purchase units with relatively modest sums and thus access premium commercial assets. SM REITs focus on middle‑size properties valued between ₹50 crore and ₹500 crore.
The report notes that investment‑grade office holdings—defined by Grade A+ specifications—often form the backbone of a robust portfolio.
Rami Kaushal, Managing Director, Consulting and Valuation Services, India, Middle East and Africa, CBRE, observed that SM REITs fill a critical niche between direct ownership and large‑scale REITs.
“This structure could also enable investors to generate stable rental income and benefit from potential capital appreciation on high‑quality assets. As the market evolves, the ability of stakeholders to navigate a nascent regulatory environment and adapt to policy refinements will be critical in this shift,” Kaushal added.
SM REITs promise democratized access to premium holdings, delivering consistent passive income and potential capital growth, bolstered by liquidity from exchange listings and clear governance frameworks.
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