Fractional Ownership of real estate is gaining momentum in India with 25-30% yearly growth

According to a research, fractional ownership of real estate is gradually gaining favor among investors, with assets under management exceeding Rs 4,000 crore.

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TruBoard Partners, a tech-enabled real estate asset management firm, has released a research on fractional ownership.

Many private companies have established fractional ownership platforms, allowing investors to control a portion of real estate assets.

What is fractional ownership?

The possession of an underlying real estate asset by many investors is often referred to as fractional ownership. According to the paper, this reduces capital needs and allows a broader range of actors to participate in real estate asset ownership.

Investors put their money into securities produced by the fractional ownership platform's Special Purpose Vehicle (SPV).

Despite the idea of fractional ownership of real estate is still in its infancy in India, it is projected to develop in the next years thanks to tech-driven platforms. According to Sangram Baviskar, MD, TruBoard Partners' Real Estate Practise.

The overall asset under management (AUM) by all of these platforms in India increased from Rs 1,500 crore in 2019 to Rs 4,000 crore in 2023, according to the report.

Ownership of luxury properties is in trend

Fractional ownership of real estate, particularly luxury properties, is already gaining popularity in India and is expanding at a rapid rate, according to Shravan Gupta, founder and CEO of YOURS. \

He claims that investors and lifestyle enthusiasts are equally drawn to this new development, and he adds that this enables more people to participate in this unique asset class.

The assets under management (AUM) of the fractional ownership industry is expected to expand at a 25–30% compound annual growth rate (CAGR) during the next 4–5 years, according to TruBoard Partner.

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