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.
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