Second-home fractional ownership: A new trend in India's real estate
With second-home fractional ownership, a highly popular practice in Europe's richer neighbourhoods and the US, gaining currency in India, doing so would need you to neither break the bank, nor sacrifice returns on investment.
«Fractional ownership of luxury homes, though relatively novel in India, is a well-accepted concept in developed nations,» said Shravan Gupta, founder and CEO, Yours, which specialises in holiday-home ownership.
«This concept is swiftly gaining popularity in India too, owing to its numerous advantages, such as simplified investment procedures and efficient property management.»
Distributed ownership of flats, condos, and villas is spurring real estate demand in popular vacation destinations such as Goa, Alibaug, Kasauli, Nainital, and the southern coffee country.
Property industry executives said the holiday home industry is worth around $2 billion in India, and its size is expected to surge to $10 billion in the next few years.
Fractional ownership currently represents a modest 1-2% of the holiday home market.
Surge in Interest from Affluent Families | page 9
But following the emergence of numerous platforms post-Covid, this share is anticipated to climb to 10% as distributed ownership costs about an eighth of outright ownership.
There is a notable surge in interest from affluent families looking to make investments in these regions.
«The luxury second home not only appreciates in value, diversifying one's investment portfolio beyond traditional avenues like stocks and bonds, but it also promises consistent appreciation and potential profit upon resale,» said Dhimaan Shah, founder and COO, Isprava, a property consulting firm.
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