The real estate industry is a vast market for profitable businesses across the globe. It has rapidly emerged as one of the highly lucrative investment areas in India as well, with many urban cities becoming real estate hubs and business centers. Gurgaon, in particular, stands out as one of the fastest-growing cities in this regard. Over the last few decades, the government has made efforts to regulate this sector, largely controlling it in terms of investment and regulations to ensure the interests of every stakeholder.<figure class="image"><img src="https://www.signatureglobal.in/blog/wp-content/uploads/2023/12/SG-Blog-Dec.jpg" alt=""></figure>On one hand, the Real Estate Regulatory Authority (RERA) oversees regulations, while the Securities and Exchange Board of India (SEBI) manages investment policies, ensuring the safety of investors—be they small, medium, or otherwise—under its supervision.A new framework approved by SEBI for small and medium Trusts of real estate investors (SM-REIT) has now lowered the asset value to fifty Crore from the existing value of 500 Crore, making it accessible to a wider range of investors.REITs, or Real Estate Investment Trusts, are SEBI-regulated entities that own and operate income-producing real estate. They offer investors an opportunity to invest in real estate without having to buy, manage, or finance individual properties. They are also listed on stock exchanges and traded like stocks. In contrast, the SEBI has now created small and medium REITs with a smaller asset value than traditional REITs, setting a minimum asset value of Rupees 50 Crore. These SM REITs can invest in a broader range of real estate assets than their traditional counterparts, helping diversify an investor’s portfolio. SM REITs are expected to be more liquid than traditional REITs, facilitating easier buying and selling of units for investors.The SEBI-approved framework for SM-REIT is believed to be designed to protect investors and promote the development of small and medium real estate investment trusts in the market. Real estate promoters such as <a href="https://www.signatureglobal.in/residential/premium/">Signature Global</a> and experts believe this new framework is a positive development likely to boost the growth of small and medium real estate investors, offering various potential benefits, including lower minimum investment, diversification, and increased liquidity. A Real Estate Investment Trust (REIT) is an investment vehicle allowing individuals to invest in large-scale, income-producing real estate without having to buy and manage properties directly. It typically trades on major stock exchanges.

Revolutionizing Real Estate Investment: Unlocking Opportunities with SEBI's SM-REIT Framework