India’s real estate market is undergoing a quiet but powerful transformation. One of the most exciting developments in recent years has been the rise of REITs (Real Estate Investment Trusts), especially the emergence of SM REITs or Small and Medium REITs. These investment vehicles are becoming a popular choice for retail investors who seek regular income and exposure to commercial real estate without the challenges of direct ownership.
Let’s explore the future of SM REITs in India’s real estate market, how they compare to larger REIT companies in India, and why they could be the next big thing in India.
What Is REIT in India?
Before diving into SM REITs, it's essential to understand the basics of what is REIT in India.
A REIT (Real Estate Investment Trust) is an entity that owns and manages income-generating real estate, such as commercial office buildings, shopping malls, warehouses, and more. These trusts pool money from investors and invest in commercial real estate assets and distribute rental income to them, making them a powerful tool for passive income.
The first REIT listed in India was Embassy Office Parks REIT in 2019, and the sector has expanded since then. However, traditional REITs tend to invest in large-scale properties and often require institutional-level capital or brokerage access.
This is where SM REITs step in, offering fractional ownership in smaller, high-quality commercial assets more suited to individual investors.
Why SM REITs Are Gaining Popularity in India
The Indian REIT landscape is diversifying. While institutional-grade REITs continue to operate at scale, a new segment, SM REITs, is emerging as the preferred choice for those who want direct access to commercial real estate with moderate capital.
Accessibility and Affordability
Traditional REIT companies in India operate on the stock exchange and generally require a demat account and knowledge of equity trading. In contrast, SM REITs via firms like hBits can be accessed through a simple onboarding process.
Attractive Rental Yields
SM REITs typically target assets with steady tenants and long-term leases, offering annual yields between 8 to 10% and the chance for capital appreciation at exit. This is particularly appealing in an environment where traditional fixed-income options deliver lower real returns.
Diversification Opportunity
Adding SM REITs to your portfolio allows for diversification across geography, tenant types, and asset classes (e.g., office, retail, or warehousing). This reduces risk while maintaining stable income.
How hBits Is Redefining SM REIT Investing in India
hBits is making it easier for people to invest in commercial real estate through SM REITs (Small and Medium Real Estate Investment Trusts).
Only Quality Properties
hBits lists handpicked commercial spaces that are already rented out. These properties are in good locations, have strong tenants, and come with long-term lease agreements, so investors can expect steady income.
Access to Premium Real Estate
You don’t need to buy an entire property to invest in real estate. With hBits, you can invest a smaller amount and become a part-owner of a high-quality property. This allows you to earn regular rental income and benefit from potential capital gains.
Safe and Transparent Process
Every property goes through full legal checks. All the important documents and financials are shared with investors. Rent is sent directly to your bank account, and you can track how your investment is doing.
Option to Exit Early
Unlike traditional real estate investments that can lock up capital for years, SM REITs offer a more flexible exit route. Investors can sell their units on the stock market, giving them a way to exit before the end of the investment term, subject to market demand and platform availability.
Growth Outlook for SM REITs in India
The future of commercial real estate investment is evolving, and SM REITs will play a big role in expanding its reach beyond institutions and elite investors.
Growing Demand for Passive Income
In a country where FDs and gold have traditionally dominated, the new-age investor seeks income with better tax efficiency and asset backing. SM REITs serve this need well.
Regulatory Evolution
SEBI will introduce clearer guidelines for fractional ownership and SM REIT structures. This will provide legal clarity and more credibility to platforms like hBits.
Urbanisation and Commercial Real Estate Growth
Commercial hubs are expanding across Tier 1 and Tier 2 cities, increasing the supply of Grade A assets. SM REITs are well-suited to tap into these emerging markets, especially in high-yield micro-markets beyond metros.
Tax Advantages
Recent reforms have aligned SM REIT taxation with listed equities, making them more attractive to investors. Long-term capital gains are taxed at 12.5%, and rental income is exempt from TDS under specific conditions.
Strong Leasing Activity
India’s commercial real estate market continues to see strong leasing momentum. This signals institutional confidence and strengthens the income stability of SM REIT-backed assets.
Why Every Indian Investor Should Consider SM REITs
If you’ve ever wondered how to invest in REITs in India without entering the stock market or managing tenants, SM REITs via hBits are your answer. Here’s why:
Earn Stable Rental Income from pre-leased commercial properties
Diversify your portfolio with a real-asset-backed investment.
Start with Low Capital and get exposure to institutional-quality assets
Track Your Investment with real-time updates and full transparency.
Enjoy Long-Term Value Creation with potential capital appreciation.
Final Word: The Democratisation of Real Estate is Here with SM REITs
The idea of owning a part of a premium office tower or a logistics hub was once limited to institutional investors and large developers. Today, thanks to SM REITs, that dream is becoming a reality for thousands of Indians.
Whether you're new to real estate or an experienced investor looking to diversify, the future of Commercial real estate in India, is inclusive, innovative, and digitally driven.
Explore curated SM REIT opportunities with hBits, and step confidently into the future of real estate investing.