India’s Fractional Ownership Market to Top $5B by 2030; Mumbai, Delhi NCR Key for SM-REITs
Mumbai and Delhi NCR have emerged as prime hotspots for asset acquisition opportunities under the Small and Medium Real Estate Investment Trust (SM-REIT) umbrella. These two micro-markets collectively account for nearly 50 percent of SM-REIT worthy assets across the top seven cities in India, highlighting their significance in the fractional ownership market.
According to a report by JLL in collaboration with Property Share, the fractional ownership market in India is projected to grow over tenfold, exceeding $5 billion by 2030. This substantial growth is attributed to the increasing interest in fractional ownership, a concept where multiple investors collectively own shares or fractions of high-value assets, such as real estate, without the need to purchase the entire property. This model democratizes access to premium real estate investments, allowing a broader base of investors to partake in the benefits of real estate ownership.
The report underscores Mumbai, Delhi NCR, and Bengaluru as key cities for SM-REIT investment prospects. Mumbai and Delhi NCR, in particular, have shown significant potential as top hotspots for asset acquisition under the SM-REIT framework. The report indicates that these two regions alone account for nearly half of all SM-REIT suitable assets across India's top seven cities. This concentration of assets in Mumbai and Delhi NCR highlights the robustness and appeal of these markets for investors looking to diversify their portfolios through fractional ownership.
Mumbai, known for its dynamic real estate market, offers a myriad of investment opportunities, from commercial spaces to high-end residential properties. The city's economic significance and continuous development make it a lucrative destination for SM-REIT investments. Similarly, Delhi NCR, encompassing the bustling areas of Gurgaon, Noida, and the national capital itself, presents a vast array of real estate assets suitable for fractional ownership. The region's growing infrastructure, coupled with its strategic location as a commercial and political hub, adds to its attractiveness for investors.
Furthermore, Bengaluru, another prime city identified in the report, is recognized for its thriving tech industry and robust commercial real estate market. The city's steady economic growth and influx of multinational corporations make it an ideal candidate for SM-REIT investments.
The anticipated growth of the fractional ownership market in India signifies a transformative shift in how real estate investments are approached. By enabling multiple investors to share ownership of high-value properties, fractional ownership not only lowers the entry barrier but also mitigates individual risk. This innovative approach is poised to reshape the landscape of real estate investments, offering enhanced liquidity, reduced financial burden, and diversified investment portfolios for a broader range of investors.
In conclusion, Mumbai and Delhi NCR stand out as pivotal regions in the burgeoning SM-REIT market, reflecting their strategic importance and potential in driving the growth of fractional ownership in India. As the market evolves, these cities are set to lead the way in providing attractive investment opportunities and fostering a more inclusive real estate investment environment.
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