By 2026, the SM REIT market could be worth over $60 billion. Over 350 million square feet of commercial office space are ready for investment. Among the top cities, Mumbai leads with 75 million square feet of SM REIT-ready office stock as of June 2024.

What is Driving SM REIT Growth?

Explore the booming market of Small and Medium Real Estate Investment Trusts (SM REITs) in India. Learn how they are transforming the real estate sector and why you should invest.

According to CBRE, India’s SM REIT market covers over 300 million square feet of completed office space. An extra 50 million square feet will be added by 2026. The growth of SM REITs is attracting more investors. These REITs offer stable returns with quarterly distributions. This makes real estate a safer investment option for more people.

Key Cities Leading the Way

Mumbai and Delhi have the highest SM REIT-ready office space, with 70-75 million square feet. Bengaluru and Hyderabad follow, with over 50 million and 30 million square feet, respectively. By 2026, Delhi-NCR, Bengaluru, and Hyderabad could add another 36 million square feet of office space. Mumbai is expected to contribute 10 million square feet more.

Why SM REITs Matter

SM REITs in India help improve the real estate market by making it more transparent. They lower the risks tied to projects that are under construction. These trusts also make it easier for investors to enter the market, thanks to quarterly cash flow distributions. As a result, SM REITs bring in more investors and improve property management.

Tax Benefits Boost Appeal

The recent tax reforms in the 2024-25 Union Budget make SM REITs even more appealing. The holding period for long-term capital gains has been reduced from 36 to 12 months. This makes SM REITs similar to listed equity shares in terms of tax benefits.

What’s Next for SM REITs?

As India’s real estate sector grows, SM REITs will play a key role. They make real estate investment easier, safer, and more attractive. This will lead to better-quality assets and higher investor confidence in the years to come.

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CBRE Report on SM REITs: For a detailed analysis of SM REITs in India, visit the official CBRE India Real Estate Market Report.SEBI’s SM REIT Regulations: Learn more about the regulatory framework from the SEBI Guidelines for REITs.