What is Fractional Ownership and Why is it becoming Popular Trend In Indian Realty?
January 07, 2025
Fractional ownership of buildings appears to be one of the growing trends that will dominate the Indian real estate industry in the next years. This is a structure in which a group of like-minded people owns a business property. Because they jointly own the property, each of them becomes a partial owner. This lessens the financial strain on a certain owner. In this method, the spending cost is spread among the owners. This is a terrific approach for millennials to generate profits from real estate. This blog will show a glimpse of how fractional ownership works and how can you benefit from it.
The Market of Fractional Ownership in India
According to the Times of India , the fractional ownership market in India is seeing a steady rise, as the CRE market is estimated to grow 16% in the coming years. Given the huge expenditure, not everyone can afford to buy a commercial property. Individuals can invest considerably less and get rewards equal to the amount invested thanks to fractional ownership. For assets that are less liquid, expensive, or difficult to handle for small investors, the fractional ownership path is frequently promoted. Millennials are increasingly turning to fractional ownership as a result of digital disruption in real estate. This might be the next great thing in investment technology and PropTech.
How Does Fractional Ownership Work?
Popular fractional ownership solutions handle assets and portfolios successfully. When a payout from the property occurs, the platform immediately distributes the cash to the corresponding owner. Through fractional ownership, you can have a steady income stream which is the goal of every long-term investor. There are three types of fractional ownership models: joint ownership, cooperative ownership, and company structure ownership. India has yet to investigate any of these on its own. However, it makes sense to deal with a reputable and well-known platform for fractional ownership. This means that you will benefit from their dependability and transparency.
Fractional Ownership in Other Countries
Looking at other countries, it seems that fractional property ownership is already a success in some. This style is especially prevalent in the United States, Hong Kong, and Singapore. In India, too, fractional ownership provides a forum for a group of people to pool their resources and acquire an asset. As a result, they have the option of reaping the benefits. They may also sell their fraction whenever they desire. This provides them with the possibility to profit financially as well.
How Does MyProp Work to Provide Fractional Ownership?
MyProp is a SEBI* regulated platform born to democratize investment opportunities for investors by providing institutional analysis, enabling liquidity at much lower investment thresholds, and facilitating property management. MyProp is a platform that helps individuals to own a fraction/share of property commercial or land. We at MyProp provide our customers access to Commercial Real Estate (CRE) and Land with property management and liquidity through resale. We assure 100% transparency and the entire project’s in-depth research is done by our team so that you can enjoy lucrative returns. Get in touch with our team to know more about fractional ownership deals!
On An Ending Note
The notion of fractional ownership of assets is still in its development but is gaining traction. When investing in fractional ownership-based properties, you should always pick reputable and transparent firms.