India's Prime Office Space Preparing for SM-REIT Listings by 2026

By 2026, around 350 million square feet of prime office space in India, worth over USD 60 billion, is expected to be eligible for listing as Small and Medium Real Estate Investment Trusts (SM-REITs). This marks a significant development in the country's commercial real estate sector, aimed at enhancing transparency and investor protections.

By 2026, approximately 350 million square feet of prime office space worth over USD 60 billion in India will be eligible for listing as Small and Medium Real Estate Investment Trusts (SM-REITs), according to CBRE.

In March, capital markets regulator Securities and Exchange Board of India (Sebi) introduced the framework for SM-REITs, although none are currently listed in the country. Real estate consultant CBRE released a report titled, 'Navigating the SM REIT Landscape - A Look at Regulations and Implications,' detailing these developments.

The report highlights that out of the total 800 million square feet of completed office stock in India, over 88 million square feet are currently REIT-listed. The potential market for SM-REITs spans over 300 million square feet of completed commercial space, with another 50 million square feet expected by 2026, translating to an estimated market value of over USD 60 billion.