Crisil Ratings, a prominent credit rating agency in India, predicts a significant expansion of the real estate investor pool due to the introduction of regulations for Small and Medium REITs (SM REITs) by SEBI, the country’s securities regulator. These regulations aim to make real estate investments more appealing and less risky for a wider audience.
The new framework broadens investor participation by offering enhanced protection and accessibility through fractional ownership. SM REITs only allow investments in fully constructed properties, eliminating risks associated with project delays and construction issues.
Additionally, fractional ownership allows investors to participate with lower minimum investments compared to traditional methods.
Crisil’s positive outlook on SM REITs stems from the belief that these regulations will address concerns around risk and affordability, ultimately attracting a new wave of investors to the Indian real estate market.
