GROWTH OF FRACTIONAL OWNERSHIP IN INDIA
Fractional ownership has been prevalent in the west for over a decade and now has gained wide popularity in the US, Singapore, Hong Kong and Europe.
Gradually, this concept is becoming prominent in India as well. Having burgeoning population, land scarcity and wide selection of real estate, for years, the Indian populace has considered an investment in residential real estate reliable, but young investors with average monthly salaries, find it hard to save such a huge chunks of money.
Furthermore, investment in CRE has been restricted to institutional investors or High Networth Individuals (HNIs) due to their possession of the right connections, specialised knowledge and significant capital.
The advent of tech-enabled platforms is making accessible to everyone the CRE investment market by offering everyone scores of investment opportunities across different locations and asset classes.
The younger generations who are tech-savvy and keen to find different ways to generate wealth are leveraging the resources of these proptech platforms to invest in high-grade properties.
Additionally, these platforms offer highly personalized services that are made according to the investors needs and budgets.
With appreciating capital value and steady rental incomes, real estate and especially CRE has become a lucrative investment avenue for a large section of investor in India.
Furthermore, the outbreak of the global pandemic has also hurt the trust of investors in conventional assets due to their poor performance. With growing market instability, low returns investors are moving towards fractional ownership as a low-risk, high return model. The portfolio diversification, easy exits, regular rental income and capital appreciation have convinced individual investors to become fractional owners of real estate.
Now, the CRE market in India is estimated to grow by 13%-16% in the next fewer years, making fractional ownership of CRE a profitable and promising venture.
