Fractional ownership of real estate brings a promising new investment option, say experts
Fractional ownership of real estate is fast emerging as a promising investment instrument in India for investors, particularly HNIs, and even end-users, which may help them earn steady returns of 8-10 per cent from the booming real estate market, opine industry experts.
While the co-ownership of high-end property is still in its nascent stage of development, several startups have emerged to offer fractional ownership platforms for both commercial as well as residential assets in India. Days are not far when established players in the real estate market too would join the bandwagon, say experts.
This new investment vehicle presents several opportunities for people and has the potential to provide a major fillip to the Indian real estate sector which is witnessing a significant demand for high-value property.
A recent report by TruBoard Partners stated that although the concept of fractional ownership of real estate is at a nascent stage in India, it is expected to grow in the next few years aided by tech-driven platforms.
Estimates suggest that the fractional ownership market in India jumped from Rs 1,500 crore in 2019 to Rs 4,000 crore in 2023.
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In simple words, fractional ownership offers investors a way to own a share of high-value property at a fraction of the cost of buying the entire property outright. Even investors with smaller budgets can invest and own shares in high-value properties in proportion to their investment.
According to market experts, there are several benefits to fractional ownership of real estate, like affordability, diversification, and professional management of property.
Another major benefit of fractional ownership is
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