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
India's Rise to Realty Prominence: A Billion-Dollar Boom
India is accelerating to become the real estate capital of Asia, with a total valuation of Rs 14.2 trillion among the top 100 realty companies.
Maharashtra Cabinet Renames Pune Airport After Sant Tukaram Maharaj
The Maharashtra Cabinet has approved a proposal to rename Pune airport after the 17th-century Warkari saint and poet, Sant Tukaram Maharaj.
The Downfall of Real Estate Moguls: Alexander Brothers Arrested in Miami
In a shocking turn of events, the renowned real estate moguls, the Alexander Brothers, were recently arrested in Miami. This news has sent ripples through the business community, leaving many to wonder what led to their downfall.
Luxury Homes, Toxic Air: The Urban Pollution Paradox in India
Nithin Kamath, a prominent real estate analyst, highlights the growing concern of urban pollution in major Indian cities like Delhi, Mumbai, and Bengaluru. Despite seeing a surge in luxury real estate, these cities struggle with alarming levels of air pol
Tragic Incident: Two Workers Killed, One Injured as Slab Collapses in Chikhla Mines
A devastating slab collapse in the Chikhla mines of Manganese Ore (India) has resulted in the death of two workers and left one injured. The incident has raised serious concerns about safety protocols in the mining industry.
Women Home Buyers Witness 14% Surge in 2024: Report
A recent report by Square Yards, titled 'Key Holders of Change - Women Driving Real Estate Growth and Transformation,' reveals a significant 14% increase in women homebuyers in 2024.