Breaking Barriers: Fractional Ownership Makes High-Value Real Estate Accessible to All
This deal marks a significant step forward in making high-value real estate accessible to a broader audience through fractional ownership and property tokenization.
Fractional OwnershipReal EstateProperty TokenizationRealxAyodhyaSebiSm ReitJll PropshareIcraReal Estate MumbaiJul 13, 2024
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.
Frequently Asked Questions
What is fractional ownership?
Fractional ownership is a shared owning of an asset among a group of people, allowing individuals to benefit from increases in the asset's value.
What is the expected growth of the Indian fractional ownership market?
The Indian fractional ownership market is expected to grow 10 times in the next five years, surpassing $5 billion in Asset Under Management (AUM) by 2030.
What is the concept of property tokenization?
Property tokenization refers to the process of dividing ownership of a property into smaller, tradable units, allowing for greater accessibility and affordability.
What is the significance of Ayodhya in the context of fractional ownership?
Ayodhya is a town poised for rapid growth, making it an attractive destination for investors seeking to benefit from fractional ownership opportunities.
What is the role of SEBI in regulating fractional ownership platforms?
SEBI has notified rules to govern small and medium real estate investment trusts (SM REITs), providing a framework for the regulation of fractional ownership platforms.
Related News Articles
Top Eight Housing Markets See 5% Drop in Sales, 25% Fall in New Launches
Housing sales have taken a hit, declining by 5% in the July-September quarter across the top eight cities, primarily due to a significant reduction in new supply and a sharp increase in real estate prices.
Saheel Properties: Pioneering Modern Living in Pune
Pune, Maharashtra, March 31: Saheel Properties has been a driving force in the real estate sector of Pune, revolutionizing the concept of modern living for decades.
TCS to Acquire Darshita Southern India Happy Homes for ₹2250 Crore
Tata Consultancy Services (TCS) has entered into an agreement to acquire 100% equity stake in Darshita Southern India Happy Homes, a Bengaluru-based commercial real estate firm, for ₹2250 crore. This strategic move aims to bolster TCS's footprint in the c
Realtors React to RBI's Unchanged Repo Rate: Hopes Dashed but Stability Welcomed
Realtors and industry experts express mixed feelings following the Reserve Bank of India's (RBI) decision to keep the repo rate unchanged at 6.5%. While the hope for a rate cut to boost festive sales was dashed, the industry largely sees the decision as a
Mumbai-Based Keystone Realtors Sees 22% Surge in Sales Bookings to Rs 611 Crore in Q1 FY25
Keystone Realtors Ltd has reported a 22% increase in sales bookings to Rs 611 crore during the April-June period of this fiscal, driven by strong housing demand.
Spades Real Estate Crush Wavilog Tech CC in ICCA Arabian T10 2024
Catch the highlights of Match 60 between Wavilog Tech CC and Spades Real Estate in the ICCA Arabian T10 2024