By 2030, the Indian fractional ownership market is expected to grow to over $5 billion; Mumbai and Delhi NCR are major hubs for SM-REIT investment

According to the survey, Mumbai and Delhi NCR have emerged as the most popular locations for asset purchase prospects under the SM REIT umbrella. Together, these two micro-markets account for over half of the SM-REIT qualified assets among the top seven cities.

Due to the fact that together these two micromarkets account for over half of the SM-REIT qualified assets among the top seven cities, Mumbai and Delhi NCR have emerged as the top destinations for asset purchase prospects under the SM REIT umbrella.

According to a survey by JLL – Property Share, the fractional ownership market in India is expected to rise by more than ten times and surpass $5 billion by 2030. Bengaluru, Delhi NCR, and Mumbai are included in the research as the top locations for Small and Medium Real Estate Investment Trusts (SM REIT) investment opportunities.

The idea of fractional ownership allows many investors to jointly own a portion of a valuable item, like real estate, without having to purchase the whole thing.

According to the survey, Mumbai and Delhi NCR have emerged as the most popular locations for asset purchase prospects under the SM REIT umbrella. Together, these two micro-markets account for over half of the SM-REIT qualified assets among the top seven cities.

Bengaluru, Chennai, Hyderabad, Kolkata, Pune, Mumbai, Delhi NCR, and Bengaluru are India's top seven micromarkets. According to the research, Bengaluru and Hyderabad come next with 15% and 1% of the shares, respectively.

It said that more than 328 million square feet (msf) of office space in India, with a $48 billion valuation, qualify for SM-REIT status. The largest amount of SM-REIT eligible stock is in Mumbai (84.4 msf), followed by Delhi (71.7 msf) and Bengaluru (50.7 msf). Kolkata has the least amount of SM-REIT eligible stock—22.9 msf.

According to JLL-Property Share statistics, the SM-REIT investment potential in Mumbai, Delhi NCR, and Bengaluru is $18.7 billion, $9 billion, and $7.2 billion, respectively.

Mumbai offers unmatched potential for SM REITs, according to Samantak Das, Chief Economist & Head of Research and REIS, India, JLL. The city offers a healthy mix of well-leased big and mid-sized properties that are perfect for purchase by fractional ownership platforms (FOPs).

Retail investors find SM REITs to be an appealing option because to the strong demand for rent-producing properties and the availability of a professionally managed platform. "SM REITs prove to be a superior option over larger office formats, eliminating the increased costs associated with purchasing and overseeing such properties, especially considering the high capital values in Mumbai," the speaker said.

With 61 percent of the SM REIT market, Gurugram has a dominant share in the Delhi NCR office category. SM REITs may spend up to USD 3 billion in the commercial corridors of Golf Course Extension, Golf Course Road, and MG Road. Another intriguing area is the NH-8 corridor, which has over 6 million square feet of SM-REIT-worthy properties, or a $1 billion potential.

When it comes to the availability of physical assets, the ORR Southeast stretch and Whitefield are Bengaluru's largest corridors. A variety of small to mid-sized commercial office developments are available for possible investments under SM-REITs throughout the off-CBD corridor that stretches from Koramangala to the periphery via Bannerghata Road and Mysore Road.

Hyderabad provides SM REITs with favorable prospects as well. Assets in the Hitec and Gachibowli corridors lead the market, comprising 84 percent of the potential that is accessible and a $3.7 billion opportunity.

"With the SM REIT regulations, SEBI has effectively introduced a completely unfamiliar asset class to the retail and institutional investor universe," said Kunal Moktan, co-founder and CEO of Property Share. An excellent chance to monetize properties that generate income is offered by SM-REITs. Property Share will make an effort to contribute to the success of these rules as a FOP platform and to provide investors with interesting investment options.