Fractional Real Estate Soars: A $1 Billion Market Poised for Explosive Growth
India's fractional real estate market is booming, driven by digital platforms, retail investors, NRIs, and HNIs. The segment is expected to grow tenfold in the next five years with regulatory support.
Fractional Real EstateDigital PlatformsNri InvestmentRetail InvestorsHighyield PropertiesReal Estate NewsJun 21, 2025
According to Manisheel Gautam, Chief Marketing Officer at Alt DRX, the fractional real estate market in India is currently valued at approximately $1 billion. “While overall real estate deployment in India stands at around $100 billion annually, the digital real estate segment is still in its infancy. We’re seeing a 30–40% year-on-year growth as accessibility for retail investors improves,” he said.
The United States, by comparison, is much further along in the journey. “Top players in the U.S. have deployed over $4 billion each in tokenized and fractional real estate, showing what’s possible when the model scales,” Gautam added.
Aditi Watve, President - Investment Sales & REIT Advisory at ANAROCK Group, estimates the Indian fractional real estate market was worth INR 4,000 crore just two years ago. With an annual growth rate of 25–30%, she believes it could exceed INR 41,500 crore within the next five years—provided the regulatory environment evolves to support this growth. Globally, the sector is set to reach a market value of USD 4.8 trillion this year, growing at an annual rate of 26%.
Watve pointed out that the demand is primarily being driven by retail investors, HNIs, tech-savvy millennials, and non-resident Indians (NRIs). “Investors are looking for exposure to premium commercial properties in cities like Mumbai, Bengaluru, Delhi-NCR, Hyderabad, and Pune. Fractional ownership offers them access to high-value assets without large capital outlays,” she said.
NRIs, in particular, are finding the model attractive due to India’s robust rental yields and the potential for capital appreciation. “They’re increasingly using digital platforms that not only enable seamless investing but also handle property selection, due diligence, and ongoing asset management,” she added.
Geographically, the trend is most prominent in the South and West of India. Gautam noted that “Goa, Karnataka, Tamil Nadu, Telangana, and Maharashtra are leading the way in fractional real estate activity. Tier-1 cities and warehousing hubs in these regions have become the focal points.”
The surge in warehousing demand, driven by India’s e-commerce boom and infrastructure growth, is also spilling over into the fractional space, creating opportunities for both retail and institutional investors.
With rising awareness, improving digital infrastructure, and evolving investment preferences, India’s fractional real estate market is on the cusp of rapid expansion. As Watve summarised, “With the right regulatory clarity and continued investor interest, this model has the potential to redefine property ownership in India—making it more inclusive, liquid, and technology-driven.”
Frequently Asked Questions
What is fractional real estate?
Fractional real estate allows multiple investors to own a share of a property, enabling access to high-value assets with smaller capital outlays.
Who is driving the demand for fractional real estate in India?
The demand is primarily driven by retail investors, high-net-worth individuals (HNIs), tech-savvy millennials, and non-resident Indians (NRIs).
What are the key regions for fractional real estate in India?
The trend is most prominent in the South and West of India, particularly in states like Goa, Karnataka, Tamil Nadu, Telangana, and Maharashtra.
Why are NRIs interested in fractional real estate in India?
NRIs are attracted to fractional real estate due to India’s robust rental yields and the potential for capital appreciation, facilitated by digital platforms.
What regulatory changes are needed to support the growth of fractional real estate?
Clear regulatory frameworks, improved transparency, and supportive policies are essential to foster the growth of the fractional real estate market in India.
Related News Articles
Justo Realfintech Expands Footprint in Pune and Thane with Mega Mandate
Real estate services startup Justo Realfintech secures developer mandates worth over Rs 1400 crore in Pune and Thane
FPCE Urges for Real Estate Guidelines Under Consumer Protection Act
In a recent letter to Consumer Affairs Secretary Nidhi Khare, the Federation of Practicing Civil Engineers (FPCE) has highlighted the need for comprehensive real estate guidelines under the Consumer Protection Act. The letter emphasizes that the Real Esta
What Caused the Mumbai Kurla Bus Tragedy: Brake Failure, Inadequate Training, or Malicious Intent?
The tragic bus accident in Mumbai's Kurla area has left the city in shock. As investigations unfold, questions arise about the root causes—brake failure, lack of training, or something more sinister. This article delves into the details and possible scena
Mumbai Property Registrations Show Strong Growth in February 2025
Mumbai witnessed a significant rise in property registrations in February 2025, with 12,056 units registered, according to real estate consultant Knight Frank India. This growth indicates a robust market recovery and increased investor confidence in the c
Thailand's Pioneering Industrial-Tech Ecosystem Takes Shape
Thailand's leading industrial real estate developers, including Frasers Property, are collaborating to unveil the country's first industrial-tech ecosystem, set to revolutionize the region's manufacturing and logistics sectors.
Godrej Properties Launches Luxurious Godrej Astra in Gurugram, Sells Homes Worth Over Rs 1000 Crore
Godrej Properties has successfully launched its new residential project, Godrej Astra, in Gurugram, achieving an impressive sales milestone of over Rs 1000 crore within a short period.