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      Diversification with SM REITs: A Smart Move for Risk-Averse Investors

      By SQUAREA Knowledge Hub

      Published: November 6, 2024

      For a long time, commercial real estate has been the domain of large institutional investors and high-net-worth individuals. However, the launch of Small and Medium Real Estate Investment Trusts (SM REITs) is redefining this notion, offering a pathway for smaller investors to participate in the lucrative world of commercial real estate.

      So, what exactly are SM REITs, and why are they capturing the attention of cautious investors?

      Understanding SM REITs

      Small and Medium Real Estate Investment Trusts (SM REITs) are emerging as a sophisticated investment option, offering a strategic pathway into commercial real estate without the need for direct ownership. Structured as pooled investment vehicles, SM REITs allow investors to participate in high-quality commercial properties, from office buildings to logistics hubs and warehouses, generally valued in the ₹50–500 crore range. Unlike traditional REITs, which often target large institutional investors, SM REITs are specifically tailored to meet the needs of smaller investors. By lowering the capital entry barrier, SM REITs enable a more diversified, accessible approach to commercial real estate, allowing investors to gain exposure to income-generating assets with strong growth potential in India’s thriving property market.

      With a minimum investment of ₹10 lakh, investors can own a portion of prime, income-generating real estate. Now, even smaller investors can secure a foothold in the commercial real estate sector, participating in properties that are not only income-generating but also possess capital appreciation potential.

      Why SM REITs Matter for Diversification

      1. Portfolio Diversification Across Commercial Real Estate Segments

      SM REITs open doors to various segments within commercial real estate, including office spaces, warehouses, and logistics centers. For cautious investors, this diversification spreads risk across different asset types, offering exposure to multiple income-generating sources without the administrative complexities of direct property ownership. Diversifying through SM REITs enables investors to mitigate risks associated with single-sector investments and capitalize on the robust growth projected across India’s commercial real estate landscape.

      2. Liquidity and Flexibility Through Market Trading

      One of the significant advantages of SM REITs over traditional real estate ownership is liquidity. Unlike direct property investments, which are often illiquid and challenging to divest quickly, SM REITs are publicly traded on stock exchanges, allowing investors to buy or sell units as per market demand. This liquidity offers a substantial advantage to those who may need to exit their investments or rebalance their portfolios without the constraints associated with physical property.

      3. Regulatory Oversight and Income Stability

      The Securities and Exchange Board of India (SEBI) regulates SM REITs, providing a level of transparency and security that private real estate investments often lack. This regulatory oversight ensures adherence to high standards of governance and operational transparency. Additionally, SM REITs are mandated to invest at least 95% of assets in completed, rent-yielding properties priced above Rs 25 crore and less than Rs 500 crore with units to be issued to a minimum of 200 investors, ensuring asset quality and investor safety.

      For risk-averse investors, this aspect of income stability, combined with regulatory safeguards, enhances the appeal of SM REITs as a reliable investment.

      The Growth Trajectory of India’s SM REIT Market

      India’s SM REIT market is still in its early stages, but the growth potential is compelling. The launch of the first SM REIT IPO in August 2024 was a pivotal moment, representing the beginning of broader acceptance and development within this segment. Industry analysts anticipate a rapid expansion in this space.

      Research projects that the market will grow to over 300 million sq. ft. of completed with an addition of 50+ million sq.ft expected to be added by 2026. These numbers pertain to mid-sized (0.1 – 1 million sq.ft), investment–grade office developments in India’s top 7 cities as of Q2 2024.

      Integrating SM REITs into an Investment Portfolio

      For those who have traditionally avoided real estate due to high capital requirements or lack of liquidity, SM REITs offer a compelling alternative. With their mix of real estate stability and stock market liquidity, SM REITs bridge the gap between direct property investment and the flexibility of publicly traded assets, positioning them as a valuable addition to modern investment portfolios.

      The emergence of SM REITs is transforming India’s commercial real estate market, offering retail investors an unprecedented opportunity to diversify their portfolios with high-quality real estate assets. With regulatory backing, attractive entry points, and market flexibility, SM REITs are well-suited to meet the needs of evolving investors in India.

      As SM REITs become a pivotal part of a balanced investment strategy, SQUAREA offers the expertise to guide you in this promising sector. Connect with us today to explore tailored solutions that align with your investment goals.


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      8 July 2025
      SQUAREA partners with Omicron Group to introduce a new Grade-A commercial landmark in Kharadi

      PUNE, India, May 26, 2025 /PRNewswire/ — Pune’s commercial real estate market has been on a steady rise, with the city recording an 8 million sq. ft. leasing volume in 2024, reflecting a 19% year-on-year increase (Knight Frank, 2025). At the heart of this growth is Kharadi – a neighborhood that has transformed from a developing suburb to one of Pune’s most sought-after business districts. With its strong connectivity to IT hubs, residential areas, and the City’s central business district (CBD), Kharadi has become a magnet for companies seeking well-connected international-standard office spaces.

      With a mix of established IT parks, premium residential projects, and upcoming commercial developments, the business district has seen notable leasing transactions with brands the likes of Citicorp, BNY Mellon, Hines, Amazon, and Deloitte, within the same micro market. This demand can be understood through two significant metrics: an influx of approximately 5 lacs of global professionals and additional leasing demand of over 20 million sq. ft., which will position Kharadi among India’s leading commercial hubs.

      Amidst this rising demand, SQUAREA has consistently been involved in connecting institutions, corporates and HNI-investors with their requirement for size appropriate Grade-A high-yield commercial assets.

      Through its extensive network, market understanding, and client-centric approach, SQUAREA has led the rally as a strategic partner for HNIs and commercial focused investors.

      With the new Grade-A commercial landmark in Kharadi titled ‘Omicron Business Landmarks Kharadi NX’ – Omicron Group has partnered with SQUAREA as the exclusive sales and marketing partner. This collaboration comes at a time when corporates and MNCs are actively seeking high-end offices in the large-to-medium format, and Kharadi lies at the heart of this growth story.

      With a corporate track record spanning over three decades, Omicron Group is known for its commitment to ethics, quality, and timely delivery. Omicron Group has delivered commercial spaces which balance international standard functionality with contemporary aesthetic appeal, earning the respect of the industry, and its investors alike.

      Placed in the center of the affluent neighbourhood in Kharadi — Omicron Business Landmarks Kharadi NX is an architectural landmark designed for modern enterprises. Rising to 26 levels on completion with a built-up area of approx. 3.6 lacs sq. ft., the development offers 20 floors of scalable Grade-A office spaces ranging from 899 sq. ft. to full floor plates of 12,400 sq. ft. Its iconic glass façade, 360-degree views of the vibrant cityscape, and serene riverside views make for a rich visual experience, while its Vastu-compliant spaces and pre-IGBC certified design ensure sustainability and long-term relevance.

      Aside from the design aspects, Kharadi NX tower is a hub of workplace experiences. The tower is equipped with 9 high-speed elevators, 9 levels of parking, and advanced security systems. A rooftop amenity zone with rooftop cafeteria and rooftop fitness area provides a perfect setting for modern-day work-life balance, while state-of-the-art facilities like conference room, training room, and a dedicated business lounge makes it an ideal choice for fast-growing businesses.

      SQUAREA’s long-standing involvement in Kharadi, combined with its expertise in Grade-A Commercial Real Estate, is expected to play a pivotal role in ensuring the success of this new commercial tower project. For businesses looking for a right-sized asset at a strategic location – Omicron Business Landmarks offers a compelling investment proposition. Readers can note that the project is registered under MahaRERA No.: P52100053519, and more details are available at: https://maharera.mahaonline.gov.in Photo: https://mma.prnewswire.com/media/2695935/Modern_workplace_amenities.jpg Photo: https://mma.prnewswire.com/media/2695934/Grade_A_Commercial_tower.jpg (Disclaimer: The above press release comes to you under an arrangement with PRNewswire and PTI takes no editorial responsibility for the same.).

      2 July 2025
      What’s Driving UHNIs to Reassess Commercial Real Estate Investments

      India’s ultra-high-net-worth individuals (UHNIs) are refining their investment approach toward commercial real estate (CRE). The reassessment currently underway is a strategic recalibration of how capital is deployed, into what it is deployed, and the role commercial real estate plays in a future-proofed portfolio.

      Several macro and structural trends are fuelling this shift:

      • From opportunistic to defensive: There is a clear pivot from speculative land banking and greenfield assets to stabilised, income-yielding developments with strong tenancy and long-term viability.
      • Form of ownership is evolving: Direct holdings and fragmented stakes are giving way to institutional models like REITs that offer scale, governance, and exit visibility.
      • ESG driving decisions: With regulatory frameworks and global investors prioritising sustainability, UHNIs are proactively integrating ESG-aligned assets that ensure both compliance and relevance.
      • Liquidity and intergenerational planning: Asset transferability, governance clarity, and estate readiness are becoming top priorities, especially for family offices planning across generations.

      Together, these forces represent a fundamental repositioning. CRE is no longer viewed in isolation as a high-yielding asset. It is now being evaluated as a strategic wealth tool, one that must perform across cycles, align with ESG norms, and support liquidity and succession planning. The reassessment is not about exiting the market, it is about upgrading the playbook. Let’s delve into each aspect shaping this transition.

      From Expansion To Consolidation

      The first visible shift is a clear move from aggressive expansion to strategic consolidation. Earlier, UHNIs were key participants in land aggregation and greenfield office investments. Today, they are narrowing their focus to high-performing, fully built, income-yielding Grade A assets.

      This reflects not just a change in risk appetite, but in investment philosophy. Asset quality, tenant profile, and compliance readiness have taken precedence over speculative upside.

      This recalibration is supported by market data. Capital deployment into Indian real estate reached USD 11.4 billion in 2024, a 54% year-on-year growth, largely driven by completed assets and well-located land acquisitions (CBRE).

      The new mandate is clear: fewer assets, stronger fundamentals, and consistent rental performance. The next layer of this shift involves how UHNIs prefer to own these assets.

      Form Of Ownership Is Evolving

      Alongside asset preference, the structure of ownership itself is transforming. UHNIs are moving away from direct, individually held assets or co-invested fragments in family partnerships. Instead, they are leaning into institutional models like REITs, Alternative Investment Funds (AIFs), and managed discretionary platforms.

      These structures offer several advantages:

      • Liquidity through public markets or defined exit windows
      • Professional management with compliance and operational oversight
      • Governance standards aligned with global best practices
      • Diversification within and across asset classes

      A prime example of this evolution is the scale at which REITs are being capitalised. Embassy Office Parks REIT, India’s largest, has announced plans to raise USD 400 million to meet growing demand for institutional-grade office assets (Reuters).

      For UHNIs, these platforms deliver transparency, reduced administrative burden, and exposure to well-performing assets without operational complexity. But ownership models are only one part of the equation, asset performance is increasingly being driven by sustainability metrics.

      ESG Driving Decisions

      Environmental, Social, and Governance (ESG) factors have moved from being soft preferences to hard investment filters. Whether driven by SEBI’s Business Responsibility and Sustainability Reporting (BRSR) norms or global LP mandates, ESG now shapes portfolio construction.

      As of end-2024, 66% of Grade A office stock across India’s top six cities was green-certified, amounting to 503 million sq ft. More notably, over 75% of all leasing in 2024 took place in green-certified buildings, underscoring a structural market shift, not a passing trend (Colliers).

      This growing preference for sustainable assets is not confined to new supply. Developers are actively retrofitting older buildings to improve ESG scores, unlocking a market opportunity worth over INR 425 billion (Colliers). This ESG integration is not only about compliance. It is now a strategic lever for:

      • Enhancing asset valuation and rental premiums
      • Attracting global corporate tenants with sustainability mandates
      • Staying compliant and responsible in an increasingly regulated and climate-conscious market

      Air quality monitoring, energy efficiency systems, waste reduction, and wellness infrastructure are now prerequisites for future-ready CRE portfolios. This reorientation towards quality and compliance also aligns with a deeper concern: preparing assets for smooth intergenerational transfer.

      Liquidity And Intergenerational Planning

      A critical driver behind the reassessment is the growing need for estate readiness and wealth continuity. UHNIs are increasingly viewing CRE through the lens of transferability, ease of governance, and long-term asset hygiene.

      Family offices are prioritising:

      • Clear holding structures with well-defined ownership and succession protocols
      • Simplified exits through REITs or managed funds that allow redemption or divestment
      • Portfolio hygiene ensuring assets meet legal, compliance, and tax thresholds for smooth inheritance

      This is particularly relevant as the first generation of Indian wealth transitions to the next. Structures that offer transparency, liquidity, and minimal transfer friction are being favoured over legacy holdings that are operationally burdensome or non-compliant. CRE is no longer just a source of income, it is now also a critical estate planning tool.

      As India's commercial real estate evolves, UHNIs are sharpening their lens, filtering for transparency, yield resilience, and ESG alignment. The shift is not about cutting exposure, but about elevating the quality of exposure.

      At SQUAREA, we specialise in helping investors navigate this next cycle. From REIT entry strategies to pre-leased Grade A assets and co-investment platforms, our advisory ensures alignment with your long-term capital goals and risk appetite.

      To learn more or build your next strategic CRE allocation, connect with us at hello@squarea.io or call +91 90 9641 9641.

      2 July 2025
      What Makes Dubai a Top Choice for Global Citizens Buying a Second Home

      Dubai is no longer just a regional powerhouse. It has become a magnet for global wealth migration. With over 7,200 millionaires relocating to the UAE in 2024 alone (Henley & Partners), the city continues to attract global citizens seeking more than just a residence. They are drawn by the promise of long-term value, enhanced security, and greater global mobility.

      This movement is mirrored in Dubai’s real estate performance, particularly in the ultra-luxury space. From waterfront addresses like Palm Jumeirah to the estates of Emirates Hills, Dubai has emerged as one of the world’s most desirable second-home markets.

      Record-Breaking Activity in Dubai’s Ultra-Luxury Market

      The continued inflow of global wealth is directly influencing Dubai’s prime real estate transactions. These are not short-term purchases, they are strategic moves by UHNWIs securing global bases for family and capital. Supporting this trend are record-setting figures:

      • • Dubai recorded 435 transactions above $10 million in 2024, totalling $7.1 billion in value. In Q1 2025 alone, 12 properties crossed the $25 million threshold, just behind Q4 2024’s 15 ultra-prime deals (Economy Middle East).
      • Palm Jumeirah led the ultra-luxury market in Q1 2025, recording 34 $10M+ transactions worth $562.8 million. Emirates Hills followed with 15 sales totalling $356.7 million (Economy Middle East).

      These exceptional figures reflect not just transactional momentum but the deeper structural advantages that continue to position Dubai as the preferred second-home destination for global investors.

      Why Dubai Appeals to Global Citizens

      What makes Dubai stand out among other international hubs like London, Singapore, or New York? The answer lies in a combination of access, security, tax neutrality, and lifestyle quality, each carefully embedded into the city’s long-term master plan.

      Ownership, Tax & Residency Advantages

      • Full freehold rights: Foreign investors are permitted to purchase property with complete ownership in designated freehold zones, encompassing both the land and the built structure, an advantage not commonly available in other global cities.
      • Zero tax burden: Dubai offers a rare tax environment, with no annual property tax, no inheritance tax, and no capital gains tax on real estate holdings. This creates a highly efficient structure for wealth preservation and estate planning.
      • • Golden Visa eligibility: A real estate investment of AED 2 million or more grants eligibility for Dubai’s long-term residency programme, including renewability and family inclusion benefits, adding both security and mobility to one’s investment (UAE Government).

      These frameworks offer the predictability, control, and legal clarity that high-net-worth individuals expect when allocating capital across borders.

      Safety, Infrastructure & Family-Friendly Living

      • Global safety rankings: Dubai consistently ranks among the safest cities in the world, thanks to low crime rates, proactive governance, and a robust civil surveillance network, factors that weigh heavily in second-home decisions.
      • World-class urban infrastructure: The city is home to internationally accredited schools, cutting-edge hospitals, and premium recreational zones, ensuring residents do not have to compromise on education, healthcare, or lifestyle standards.
      • Planned neighbourhoods and smart services: From traffic efficiency to digitised municipal services, Dubai’s master-planned communities offer a seamless living experience, supporting everything from work-from-home professionals to global families.

      This commitment to quality of life ensures Dubai meets the expectations of discerning residents seeking security, comfort, and day-to-day efficiency.

      Strategic Geography & Global Connectivity

      • Geopolitical positioning: Dubai’s location within a 7-hour flight radius of Asia, Europe, and Africa offers unparalleled access to major global financial and business hubs, making it ideal for investors managing international portfolios.
      • Airline and airport infrastructure: Dubai International Airport (DXB) and Al Maktoum International (DWC) collectively connect the city to over 240 destinations, offering world-class logistics for both business and personal travel (Government of Dubai).
      • Operational advantage: For global citizens managing assets and families across continents, this location becomes an operational advantage, not just a geographic one.

      This strategic geographic positioning reinforces Dubai’s appeal as a seamlessly connected global hub, an essential factor for mobile, asset-diverse investors.

      Currency Stability & Investment Confidence

      • Stable currency: The UAE Dirham’s peg to the US Dollar protects investors from the kind of currency volatility seen in many emerging markets, providing predictability in cross-border financial planning.
      • Robust regulatory ecosystem: Institutions like the Dubai Land Department and RERA (Real Estate Regulatory Agency) ensure transparent processes, legal recourse, and investor protections, fostering long-term trust in the market.

      This foundation of monetary and legal stability makes Dubai a credible, future-ready base for strategic asset holding.

      Year-Round Lifestyle Appeal

      • Unmatched climate and lifestyle mix: Dubai’s 320+ days of sunshine, coupled with its beaches, golf courses, and wellness hubs, create an all-season lifestyle few cities can rival.
      • Cultural and culinary diversity: From Michelin-star dining to international art fairs and high-fashion retail, the city offers a global lifestyle experience rooted in convenience and luxury.

      These elements make Dubai more than just a part-time residence. It becomes a second base for entertaining, living, and integrating family, leisure, and business with ease.

      Dubai’s rise as a preferred second-home destination is no coincidence, it is the result of deliberate, long-term planning around ownership freedom, tax neutrality, and global connectivity. As millionaire migration and wealth redistribution accelerate globally, Dubai is setting a new benchmark for what a second home can represent.

      At SQUAREA, we offer discerning investors access to Dubai’s most coveted residential assets, from waterfront villas to branded residences, curated to align with both lifestyle aspirations and capital strategy.

      For bespoke opportunities, contact us at hello@squarea.io or call +91 90 9641 9641.