hBits, a company spearheading fractional real estate investments in high-yielding Indian assets, plans to expand its operations to the UAE. Residents of the UAE, both citizens and expats, will soon have the opportunity to participate directly in the booming real estate markets of the UAE and India while investing very small amounts. The company will allow retail investors in the UAE to obtain partial ownership of multi-million dollar residential and commercial properties in Dubai for as little as USD 30,000 through an alternative investment fund (AIF) being set up. For investments in Grade A office buildings in India, UAE investors would invest through an AIF that hBits plans to launch in GIFT City, India's international financial center.
hBits, a company spearheading fractional real estate investments in high-yielding Indian assets, plans to expand its operations to the UAE. Residents of the UAE, both citizens and expats, will soon have the opportunity to participate directly in the booming real estate markets of the UAE and India while investing very small amounts.
The company will allow retail investors in the UAE to obtain partial ownership of multi-million dollar residential and commercial properties in Dubai for as little as USD 30,000 through an alternative investment fund (AIF) being set up. For investments in Grade A office buildings in India, UAE investors would invest through an AIF that hBits plans to launch in GIFT City, India's international financial center.
Following a recent decision by India's market regulator SEBI, small and medium real estate investment trusts (SMREITs) that enable fractional property ownership are expected to soon list on Indian stock exchanges. Investors can exit these investments at any time, similar to selling shares or mutual fund units. The entire fund will close when the underlying asset is sold.
hBits recently announced its plans to be the first company to register with SEBI as a Small and Medium Real Estate Investment Trust (SM REIT).
hBits will soon open an office in Dubai and explore partnership opportunities to accelerate its growth plans in the UAE. The company is already in talks with some developers and distributors there.
hBits is looking to significantly expand its investor base to include foreign investors, and its proposed AIFs in GIFT City and the UAE aim to facilitate this. For Dubai investments, hBits will establish a Special Purpose Vehicle and route all investments through an escrow account to ensure transparency. The investment will range from USD 6 million to USD 10 million for every asset that it purchases, and will invite investors with investment amounts starting USD 30000 to own the property fractionally with other investors.
The Indian real estate market has seen significant price appreciation in both the residential and commercial segments over the last three years. Investments in Indian Real Estate have been consistent for the past few years and have an innate potential to grow further on account of structural changes in demand for capital. Global investors have always remained at the forefront and consistently infused average USD 4 Billion annually in the last five years, showcasing continued commitment and confidence towards the sector.
With a rise in performance credit, special situations, portfolio acquisitions, asset reconstruction and related structures the sector is poised to attract even more investments in the next few years. The influx of investments nearly doubled since 2019, indicating a substantial rise in investor enthusiasm and confidence in India's real estate sector.
The proposed expansion to the UAE aligns with hBits' goal of significantly expanding its investor base to include foreign investors. By establishing a presence and partnership opportunities in Dubai, hBits aims to facilitate investments from UAE residents into high-quality real estate assets in India and Dubai through fractional ownership models. This will help boost investments in India's promising real estate sector from global pools of capital.
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