How SEBI's nod to Small and Medium REITs may open doors for real estate investors?
SM REITs, with an asset value of at least ₹50 crore vis-a-vis minimum asset value of ₹500 crore for existing REITs.The decision was approved at the meeting of the board of the Securities and Exchange Board of India (Sebi) in Mumbai. Industry experts welcomed the Sebi decision to regulate fractional ownership real estate market.
Aryaman Vir, CEO at WiseX said, “As the pioneers of Fractional Ownership model and neo-realty investments in India, we applaud SEBI's progressive move in regulating the fractional ownership framework with the amendments to the REIT Regulations. Sebi Chairperson Madhabi Puri Buch said the objective of the Small and Medium Real Estate Investment Trusts is to help expand the market significantly so that more retail investors can have fractional ownership in REIT units.
She also said the regulator is open to looking at creating more such products. SEBI's acknowledgment of the growing trend of fractional ownership platforms and extending regulatory oversight is commendable, said WiseX CEO.
"We believe that it will not only foster investor interest in the real estate space but also ensure investor protection, common disclosure practices, and a robust redressal mechanism," he added. Vir, further added, “Further, the lowered minimum asset value of ₹50 crore for Small and Medium REITs will open exciting opportunities for investors seeking more accessible entry points into real estate ownership.
The ability of SM REITs to create separate schemes enhances flexibility and innovation in structuring real estate portfolios. We look forward to the positive impact these regulatory changes will bring to the fractional ownership ecosystem, promoting more inclusivity and diversification in real estate investments." D
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