Real Estate Mumbai
Breaking Barriers: Fractional Ownership Makes High-Value Real Estate Accessible to All
By GeoSquare News Desk · Published 2024-07-13
The Indian fractional ownership market is currently valued at around $500 million and is expected to grow tenfold in the next five years, surpassing $5 billion. In a significant development, Pune-based fractional ownership platform RealX has facilitated a 3,500 square yard land deal in Ayodhya, valued at ₹10.40 crore. This deal is a testament to the growing potential of fractional ownership in making high-value real estate accessible to a broader audience.
RealX closed the Ayodhya commercial land parcel, spanning 31,646 square feet, at a value of ₹10.40 crore. Fifty-seven investors participated in the deal, investing between ₹50,000 to ₹25 lakh to acquire proportionate ownership rights in the property. This landmark deal demonstrates the power of fractional ownership in democratizing access to high-value real estate.
Fractional ownership is a rapidly evolving market in India, with the sector expected to touch ₹4,500 billion by 2026. The concept involves shared ownership of an asset among a group of people, allowing individuals to benefit from increases in the asset's value. As demand for fractional ownership grows, so does its potential to transform the real estate landscape.
RealX, a pioneering fractional ownership platform, is at the forefront of this revolution. With its strategic partner Fundbezzie, RealX has successfully navigated the challenging sellers' market to secure a prime property in Ayodhya. This achievement reinforces the confidence in the fractional ownership model.
Ayodhya, a town poised for rapid growth, is an attractive destination for investors. As tourism increases, demand for fractional ownership is expected to rise. The model allows six to eight co-owners to share the benefits and responsibilities of property ownership, making it an attractive option for those seeking to invest in real estate.
Several fractional ownership platforms have started registering under SEBI's new SM REIT rules, paving the way for the growth of the sector. With the regulation of fractional ownership platforms, investors can now participate in real estate ownership with fractional shares, with a minimum investment ranging from ₹10-25 lakh.
The Indian fractional ownership market is poised for exponential growth, driven by the increasing demand for accessible and affordable real estate investments. As the market continues to evolve, it is likely to surpass $5 billion in Asset Under Management (AUM) by 2030, according to a JLL-PropShare analysis.
RealX is a Pune-based fractional ownership platform that aims to democratize access to high-value real estate through innovative ownership models. With a focus on transparency and ease of investment, RealX is revolutionizing the real estate sector in India.
Fundbezzie is a strategic partner that assisted RealX in the Ayodhya land deal. As a leading player in the financial services sector, Fundbezzie provides innovative solutions for investors seeking to diversify their portfolios.
SEBI (Securities and Exchange Board of India) is the regulatory body overseeing the Indian capital markets. Its new SM REIT rules aim to regulate fractional ownership platforms, providing a framework for the growth of the sector.
JLL-PropShare is a leading real estate consultancy that provides insights and analysis on the Indian real estate market. Its report on the fractional ownership market predicts exponential growth in the sector.
ICRA is a credit rating agency that provides analysis and insights on the Indian economy. Its report on SM REIT listings highlights the monetization opportunities in the commercial office space sector.