Fractional Ownership of Commercial Real Estate: A promising prospect in India
Fractional ownership is revolutionizing the Indian real estate sector by democratizing investment opportunities and granting retail investors access to high-value commercial properties. With its potential for high returns, ease of tracking, and diversification benefits, this investment model is rapidly gaining popularity.
According to a report by Knight Frank, the market size of fractional ownership in India was USD 5.4 billion in 2020 and is projected to reach USD 8.9 billion by 2025, growing at a CAGR of 10.5%.
Commenting on the advantages and its future prospects in India, Nayan Raheja of Raheja Developers said, “Fractional ownership offers significant advantages for investors looking to tap into the potential of the commercial property market. It provides high appreciation potential and easy tracking. Commercial real estate investments have a track record of delivering excellent returns, and with the digitization of the real estate industry, tracking fractional investments has become more convenient than ever.”
Raheja added, “We are the first company to provide Bank Secured Returns up to 12% for 6 years to fractional ownership buyers in the country. The scheme also provides investors peace of mind to sub-assign the leasing rights to professional IPCs to manage the asset on their behalf to create a lifetime of revenue stream.”
Also Read: 6 essential steps to stop overspending and achieve financial goals
Online platforms and technology-driven solutions allow investors to monitor their fractional ownership, enhancing transparency and providing greater convenience.
“Fractional ownership grants retail investors access to Grade A properties that were once exclusive to institutional investors. These high-quality
Read more on financialexpress.com
