India’s Small & Medium REIT market poised to cross US$ 75 billion
- IBEF
- December 10, 2025
Real Estate Investment Trusts (REITs), which focus on Small to medium-sized properties (SM REITs), are rapidly being recognised as a growing aspect of the Indian Real Estate sector. There are now many ways to invest in property in India beyond traditional large-scale Commercial Assets. According to CBRE South Asia, the SM REITs market has an estimated potential of over Rs. 6.25 lakh crore (US$ 75 billion) with an already significant pipeline of over 500 million sq. ft. of eligible Office, Logistics, and Retail Assets. SM REITs allow the public to invest in fractional ownership of income-generating property in mid-sized categories, thereby opening Real Estate investment opportunities to a much broader spectrum of investors and providing higher transparency, improved governance, and institutional-grade asset management. Furthermore, with a shift in focus to SM REITs, liquidity in this asset class will improve, and capital inflows from retail and high-net-worth individuals will increase.
As greater regulatory consistency drives more widespread participation in Indian commercial real estate (CRE), institutionalization will be led by SM REITs. SM REITs provide investors with predictable rental yields, lower entry points or ticket sizes, and greater access to professionally managed real estate investments. These characteristics have the potential to increase investor confidence in CREs. Additionally, the growing interest in higher-quality Grade B and A asset types within Tier I and emerging Tier II cities will further broaden the SM REIT's market beyond traditional metropolitan markets. Consequently, SM REITs will play an essential role in transforming India's investment ecosystem by fostering the growth of mid-market real estate, enabling real estate monetization, and promoting long-term financial inclusion for participants in the sector.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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