NewsStocksREITs and fractional ownership to expand retail access to real estate in 2026, says Praveen SharmaREITs and fractional ownership to expand retail access to real estate in 2026, says Praveen Sharma
Praveen Sharma, CEO of REA India, predicts 2026 will mark a turning point for retail participation in Indian real estate, with REITs and regulated fractional ownership platforms democratising access to institutional-grade properties. Beyond the premium housing dominance of 2025, the market is expected to see growing demand for mid-segment 3BHK homes driven by hybrid work patterns. Institutional capital will likely focus on Grade A office assets, logistics, and data centres in key markets like NCR, Bengaluru, and Hyderabad, while Tier-II and Tier-III cities emerge as structural growth markets with improved infrastructure and decentralised employment opportunities.
*this image is generated using AI for illustrative purposes only.
After a year dominated by premium housing and institutional activity, 2026 is shaping up to be a turning point for retail participation in Indian real estate. As investors look beyond traditional home ownership, demand is rising for structures that offer income visibility, professional management, and liquidity without the high entry barriers of direct property investments.
Praveen Sharma, CEO of REA India (Housing.com), explains how REITs and regulated fractional ownership platforms are set to play a much bigger role in democratising access to institutional-grade real estate. He discusses why yield-focused assets, improved transparency, and maturing regulations are drawing retail investors closer to commercial real estate.
Market Trends Beyond Premium Housing
While luxury and branded residences dominated 2025, Sharma anticipates a broader demand spectrum emerging in 2026. The market is witnessing growing traction for larger-format mid-segment homes, particularly 3BHKs, driven by hybrid work patterns and evolving lifestyle needs.
| Market Development | Impact |
|---|---|
| Price Stabilisation | Encouraging serious end-users who were previously priced out to return |
| Digital Engagement | Buyers increasingly demanding transparency and data-backed decision-making |
| Housing Format Shift | Growing preference for 3BHK configurations in mid-segment |
Institutional Capital Flow Outlook
The outlook for institutional and foreign capital inflows into Indian real estate remains positive for 2026, with investors increasingly viewing the sector as a mature, income-generating asset class. Capital is likely to be directed toward specific high-yield segments.
Priority Investment Areas:
- Grade A office assets
- Logistics facilities
- Data centres
- Rent-yielding residential developments
Key Markets:
- NCR (National Capital Region)
- Bengaluru
- Hyderabad
These markets offer strong job creation and regulatory clarity, with yield visibility and long-term stability serving as key investment considerations.
REITs and Fractional Ownership Revolution
REITs and fractional ownership are expected to play a significantly larger role in widening retail participation in real estate during 2026. As awareness grows, investors are seeking stable yields, professional asset management, and liquidity that REITs offer.
Sharma expects more structured and regulated fractional ownership platforms to gain traction, particularly in commercial real estate, allowing retail investors access to institutional-grade assets previously available only to large investors.
Regional Market Dynamics
NCR has emerged as India's strongest-performing housing market, with robust demand across both 2BHK and 3BHK configurations, particularly in Noida, Greater Noida, and Gurugram. This momentum is driven by infrastructure upgrades, strong job creation, and sustained investor confidence.
| Region Type | Key Developments |
|---|---|
| Tier-II and Tier-III Cities | Emerging as structural growth markets with improved infrastructure and decentralised employment |
| Metro Cities | Rental yields expected to remain stable to marginally improve, particularly in employment-led markets |
| NCR Specific | Premiumisation trend continues, though affordability pressures persist in certain micro-markets |
Office Leasing and GCC Growth
Office leasing surged in 2025, driven by Global Capability Centres (GCCs). India has evolved from being a cost-efficient back office to a global capability and innovation hub. GCCs are attracted by India's deep talent pool, scalable Grade A office infrastructure, and improving urban ecosystems.
Cities such as Bengaluru, Hyderabad, Pune, and NCR offer a compelling combination of talent availability, cost efficiency, and long-term growth visibility, encouraging larger and longer leasing commitments.
Market Maturation Insights
Sharma's key learning from 2025 was that Indian real estate is entering a more mature, disciplined, and end-user-driven phase. While premium housing remained resilient, affordability emerged as a key challenge requiring policy support. The year also underlined the growing role of technology in driving transparency, trust, and informed decision-making, laying the foundation for sustainable long-term growth.
Rental yields are expected to remain stable to marginally improve in 2026, particularly in employment-led markets, with cities experiencing strong job inflows like Bengaluru, Hyderabad, and NCR likely to see the healthiest rental demand and yield stability.
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