In March 2024, the Securities and Exchange Board of India (SEBI) notified the new Small and Medium REIT regulations opening an entirely new way of investing in specialised rent yielding real estate. SM REITs are smaller investment trusts for assets below Rs. 500 crores (c. US$ 60 million) that had thus far been inaccessible to retail and institutional investors. Technology has been the driving force behind the regulation, led front and centre by PropShare, a tech platform that pioneered the concept of investing in this asset class back in 2015.
Through the SM REIT regulations SEBI has effectively introduced an entirely new asset class to the retail and institutional investor universe, continuing the march towards securitisation of real estate assets that started with REIT regulations in 2014. SM REITs provide a tremendous opportunity to monetize income generating assets that currently do not have access to liquidity and when paired with technology has the potential to completely transform the real estate investment landscape in the country.
