SM REITs to Transform India's Commercial Real Estate, Projected Market Size to Hit USD 60 Billion by 2026

The SM REITs market in India is projected to exceed USD 60 billion by 2026. According to CBRE, the potential market includes over 300 million sq. ft. of completed commercial office space. The new framework is expected to enhance transparency and provide robust investor protections.

The potential market size for Small and Medium Real Estate Investment Trusts (SM REITs) in India is anticipated to surpass USD 60 billion by 2026, according to a report from real estate consulting firm CBRE South Asia Pvt. Ltd. CBRE estimates that the market could comprise over 300 million sq. ft. of completed commercial office space, with an additional 50 million sq. ft. expected by 2026.

The report highlights growing interest in SM REITs, which are set to play a pivotal role in the future of India's commercial real estate landscape. The current total completed office stock in India stands at over 800 million sq. ft., with REIT-listed office inventory recorded at over 88 million sq. ft.

Mumbai recorded the highest potential SM REIT-ready completed office stock of 75 million sq. ft. as of June 2024, with approximately 10 million sq. ft. of impending supply by 2026. Delhi-NCR followed closely with over 70 million sq. ft., Bengaluru with 50 million sq. ft., and Hyderabad with 30 million sq. ft. Additional cities like Pune, Kolkata, and Chennai have recorded 25 million sq. ft. of completed supply and are expected to contribute an additional 14 million sq. ft. by the same year.