Hyderabad is a prime destination for portfolio acquisition by Small and Medium (SMREIT) as the city offers attractive valuations for well-leased and mid-sized assets, according to recent findings by JLL –Property Share report.

Hyderabad has 37.1 mn sft of office asset worthy for fractional ownership with an investment potential of $3.8 billion. The market is led by assets in the Hitec City and Gachibowli corridors, which account for 84 per cent of the available potential, representing a $3.7 billion opportunity. Propelled by its booming Grade A office stock, and a strong demand from global GCCs, the city offers healthy opportunities for SM REITs.

Kunal Moktan, Co-founder and CEO, Property Share, said: “Through the SM REIT regulations SEBI has effectively introduced an entirely new asset class to the retail and institutional investors, continuing the march towards securitisation of real estate assets that started with REIT regulations in 2014. SM REITs provide a tremendous opportunity to monetise 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.”

According to the report findings, the fractional ownership market in India is projected to grow over 10 times, and exceed $5 billion by 2030. With a vast portfolio of over 328 million sft of office assets valued at around $48 billion, which are considered suitable for Small and Medium REIT investment, Mumbai, Delhi NCR, and Bengaluru lead the SM REIT market, representing 73 per cent of worthy assets in the top seven cities’ office sector, while Hyderabad follows with 11 per cent shares.

While two metros of Mumbai and Delhi NCR has emerged as top hotspots for asset acquisition opportunities under the SM REIT umbrella, the tech markets display notable growth potential, with attractive investment opportunities found in well-leased mid-sized assets that fall under the scope of SM REITs.

Fractional ownership is a concept where multiple investors collectively own a share or fraction of a high-value asset, such as real estate, without having to buy the entire property.