Fractional Real Estate Investment: The Future of Asset Ownership for India’s Tech-Savvy Millennials and Gen Z

Fractional investment in real estate refers to the concept of multiple investors owning a share of a property, rather than just one individual or entity owning the entire property. This allows investors to invest in real estate with a smaller investment amount and share the costs, risks, and returns of the property.

Fractional ownership can be achieved through a variety of means, such as a real estate investment trust (REIT), a property investment fund, or a property-sharing platform. These platforms allow multiple investors to pool their money together to purchase a property, and then divide the ownership and returns among the investors.

Fractional ownership can also be achieved through a timeshare model, where multiple investors purchase the right to use a property for a specific period of time, such as a week or a month

Fractional investment in real estate has the potential to provide a high ROI in India, typically ranging from 8% to 15% per annum. This is because the real estate market in India is growing rapidly, with a high demand for affordable housing and rental properties in urban areas.

Fractional investment also allows investors to diversify their portfolio and spread their risk across multiple properties. In addition, the ability to invest in smaller amounts means that more people can participate in the real estate market, including millennials and Gen Z who may not have had access to traditional real estate investment opportunities.

However, fractional investment in real estate also has some drawbacks, such as the potential for disagreements among investors, and the need for a good management and governance structure. It’s important for potential investors to consider these factors and thoroughly research any fractional investment opportunity before investing.