- By SteadyAsset
- 20 Oct, 2025
Commercial real estate has long been dominated by institutions and high-net-worth individuals due to high capital requirements. Today, Small and Medium Real Estate Investment Trusts (SM REITs) are transforming this landscape by enabling wider investor participation in premium commercial assets.
An SM REIT is a SEBI-regulated investment vehicle that manages income-generating properties valued between ₹50 crore and ₹500 crore. Investors earn regular dividends from rental income, gaining exposure to professionally managed real estate without the complexities of direct ownership.
Why SM REITs Matter
They provide access to high-quality properties, transparent income distribution, diversification, and regulated oversight—all with lower entry barriers than direct ownership.
Key Eligibility Criteria
- ✅ Asset Value: Each property must be valued between ₹50 crore and ₹500 crore.
- ✅ Investor Base: A minimum of 200 unitholders ensures broad participation and independence.
- ✅ Revenue-Generating Assets: At least 95% of investments must be in completed, income-producing commercial properties.
- ✅ Investment Manager: Must be India-registered, SEBI-approved, and possess a net worth of ₹20 crore (₹10 crore in liquid assets).
SEBI Regulations
SM REITs must fully comply with SEBI’s disclosure norms, including details on property value, tenant mix, rental income, and NAV. Units are priced at ₹10 lakh or higher to attract informed investors.
Conclusion
SM REITs are reshaping how Indians access commercial real estate—offering transparency, stability, and steady income through carefully curated, SEBI-compliant assets managed by experts.
