Fractional property ownership in India is a new concept that allows individuals to become owners of high-quality commercial properties for a modest amount of money. It is slowly gaining momentum as the modern real estate investment paradigm.

One of the many things this pandemic has taught us is that we need to invest wisely. Stocks will crash, and investors will have to either withdraw their money at a loss or wait impatiently for the price to rise. Investors recognize the value of diversifying their portfolios and investing in more stable investment groups.

With the stock market uncertain and Fixed Deposits rates dropping, more and more consumers are turning to more reliable forms of investment such as real estate. At the same time, fractional ownership was growing in popularity among Indian investors. Partial ownership refers to partial ownership of an asset, most commonly a high-yield commercial real estate asset.

Fractional ownership in India is still in its nascent stages and has not been recognized as a mainstream investment class on par with equities and mutual funds, but it is gaining momentum. To determine whether this investment model will succeed in the future, we must first assess the current situation. Although the concept is relatively new, India’s condominium sector is believed to be worth his US$5 billion.

Class A commercial properties in India include office buildings, warehouses, industrial and residential areas. As these require significant funds, CRE is limited to his HNI and Ultra HNI only. Middle-class investors now have to choose between highly volatile stocks and low-yielding FDs.

Fractional ownership makes investing in prime commercial real estate affordable and easy. This is exactly what Indian investors have been waiting for. This property investment concept allows Indians to own commercial property according to their budget and also helps break HNI’s monopoly in commercial property investment.

Fractional Ownership In Real Estate Investments & Its Challenges

As the concept is still new in India, investors should take prudent risks rather than jumping in blindly. Lack of a standardized approach forces investors to rely on companies whose terms are acceptable. As fractional ownership becomes more common in India, the government will want to develop investment regulations to address the issue and govern the use of fractional ownership. Until then, both parties must choose mutually beneficial paths.

Fractional Ownership as the Future of Indian Property

Investment While most of us wonder if fractional ownership will survive in India, other experts believe this is the future of Indian real estate.

Make housing more affordable
Commercial real estate has always been considered highly profitable, but due to the costs involved, midsize investors rarely enjoy such high-yield investments.

Appropriate IRR
Partial ownership not only guarantees a sizeable return, but also an increase in income in both rental yields and capital appreciation. Investing in a solid company through a trusted platform, an investor can expect rental yields to increase his 15%. For example, Asset Yantra offers investors top-notch products that can easily capture her IRR from her 12% to her 21%. Hassle free investment

Asset growth and steady growth guaranteed
Commercial real estate is one of the few asset groups to recover quickly from the epidemic. CRE and office leasing grew in India while other types of property fell on the backburner during the craze. Additionally, multinationals have opened branches in India, increasing demand for commercial real estate, making it a reliable investment with potential capital appreciation and consistent growth.

Long term leasing
Unlike residential leases, commercial leases are long-term, with multinational and IT tenants typically renting out space for the long term or renewing leases and never delinquent payments. This ensures a steady stream of passive income.

Designed specifically for today’s investor, fractional investments are cost-effective real estate investments that require no time or maintenance on the part of the owner.

Asset Yantra , a real estate investment platform, further simplifies the investment process by completing CRE due diligence and putting only the best investment proposals on the table. We also adhere to strict transparency and customer-focused practices.

Extreme stock market volatility and losses have resulted in a significant increase in investors looking to invest in CREs and other high quality assets. Commercial real estate has long been a staple asset for institutional investors and very wealthy individuals and, based on our experience to date, can also be reasonably considered a recession-proof investment.

Individual investors can take advantage of these secure investment opportunities and pursue profits through fractional ownership. Real estate can be very profitable when handled with care. Fractional ownership can be a great and very stable investment for both young people and seniors approaching retirement. It can even be said that this partial ownership remains.