Fractional Ownership: A Popular Trend Emerging In Indian Realty

By : 360 Realtors

23 August, 2022

Among the emerging trends that would dominate the Indian real estate sector in the coming years, fractional ownership of properties looks promising. This is a system where some like-minded people own a property, mostly commercial. As they own the property together, each of them becomes a fractional owner. This reduces the financial burden on a particular owner. The expense cost gets distributed among the owners in this system. For millennials, this is a good way to earn returns from real estate.

Thanks to digital transformation in real estate, millennials are increasingly moving towards fractional ownership. In the world of investment tech, this might be the next big wave. Previously, the properties that were accessible only by HNIs are now becoming accessible to all through fractional ownership. With this, now assets have become accessible by an extensive pool of investors. These include fractional investors, individual investors, and institutional investors. Therefore, new-age investors have the chance to own a part of a large property only by spending the amount he or she can afford.

Knowledgeable investors are looking for more opportunities to invest in real estate. This sector is more stable in terms of revenue generation, compared to any other sector. Considering that the stock market lacks stability and fixed deposits are not generating good rates of interest, it makes sense to delve into the real estate sector.

Looking at other countries, it appears that fractional ownership of properties has already been a success in some nations. Particularly, this trend is popular in the USA, Hong Kong, and Singapore. In India, too, fractional ownership provides a platform where some individuals can come together and purchase an asset. Therefore, they have the provision of enjoying the returns. Also, whenever they want, they can sell off their fraction. This brings them the opportunity to make capital gains as well.

Popular fractional ownership platforms effectively manage the asset and portfolio. Whenever there is a payout from the property, the platform distributes the amount automatically to the respective owner. However, it makes sense to go for a trusted and established platform for fractional ownership. This implies that you would benefit from their reliable service and transparency. Fractional ownership has been emerging as a strong trend in the Indian real estate sector. In the coming years, more millennials are likely to go for fractional ownership.