As 2025 approaches, SEBI’s recent regulation of small and medium real-estate investment trusts (SM REITs) is set to drive significant trends in the sector, including increased investor confidence, greater accessibility to institutional-grade assets and the rise of fractional ownership. Sudarshan Lodha, Co-Founder & CEO, Strata, shares his views on this form of investment, how it will empower women investors, its long-term benefits, how it could revolutionise data centre investments and how these financial instruments will fare, going forward. Excerpts:  India's first SM REITs have just opened. Please share your views on this form of investment in terms of pros and cons.SM REITs represent a transformative step for India’s commercial real-estate market. One of the key advantages is the asset class’s ability to lower the entry barrier for retail investors, allowing participation with smaller ticket sizes, which broadens access to a wider audience. Additionally, the asset class provides diversification opportunities by enabling investments in income-generating assets such as offices, industrial properties and retail spaces. This diversification can help mitigate risks associated with investing in a single asset class. Moreover, adherence to SEBI regulations enhances transparency and compliance, which fosters investor confidence in this new investment vehicle.On the other hand, there are some challenges to consider. Being a relatively new asset class in India, SM REITs may take time to gain traction and build trust among investors. Further, like any real-estate investment, returns from SM REITs are contingent on market conditions and the performance of the underlying assets, which can introduce an element of uncertainty similar to traditional real-estate investments. Overall, while SM REITs present exciting opportunities for investors, it is essential to approach them with an understanding of both their potential benefits and inherent risks.Please tell us how SM REITs will empower women investors by highlighting opportunities to engage in the real-estate market.Historically, investment spaces have been male-dominated; however, at Strata, we are proud to report that nearly 50 per cent of our investors are women. SM REITs present a unique opportunity for women to engage in real-estate investing, an asset class that has traditionally been less accessible.By providing lower ticket sizes and passive income opportunities, SM REITs appeal to women seeking stable, long-term growth options. Our commitment at Strata includes promoting awareness among women about these investment avenues, empowering them to achieve financial independence and contributing to broader gender equality in wealth creation.SM REITs are structured to allow for more targeted investments in specific property types or locations. Please elaborate on the long-term benefits.   SM REITs are structured to allow investors to make targeted investments in specific property types or geographical locations. This tailored approach enables investors to align their portfolios with market trends and personal goals effectively. For example, areas experiencing infrastructure development or those near upcoming metro lines present significant growth potential. By focusing on thriving zones, such as tech hubs or industrial hotspots, investors can achieve superior risk-adjusted returns over time. As these regions develop, the value of strategically chosen assets is likely to appreciate, making SM REITs an attractive option for long-term wealth creation.Please elaborate how SM REITs could revolutionise investments in data centres, a sector that is already booming. The data centre sector in India is projected to grow at a CAGR of 15.07 per cent from 2022-2027, reflecting its status within the real-estate market. Data centres offer long-term leasing models and resilient income streams that align well with the structure of SM REITs, presenting opportunities for steady dividends and capital appreciation. However, current regulations prevent SM REITs from including data centres as they are classified under infrastructure assets governed by INVITs. Should regulatory frameworks evolve, Strata is keen to explore these high-growth opportunities within the data centre sector, allowing our investors to capitalise on its immense potential.Given the current infrastructure push, how will these financial instruments fare in 2025?With India's infrastructure sector undergoing unprecedented growth through substantial investments in smart cities, transportation networks and energy projects, we anticipate numerous opportunities for SM REITs across Tier 1 and Tier 2 cities. The rising demand for global capability centres (GCCs), increased retail consumption and the expansion of India's manufacturing sector all signal robust growth ahead. SM REITs are uniquely positioned to leverage this potential by providing access to commercial spaces, logistics hubs and industrial parks that cater to these thriving sectors. As a leader in this space, Strata aims to be at the forefront of these opportunities while delivering strong returns for our investors.