Middle class realty investors prefer ‘fractional ownership’

Chennai: Fractional ownership has emerged as a new way of investment in commercial real estate and has caused extensive rebranding in realty sector, says a new study.

While the concept of fractional ownership in the real estate has been prevalent in the US and Europe market for a long time, it is now gaining momentum in India.

The commercial real estate asset class has been the playground for largely institutional investors since years and is gaining momentum as an investment avenue for the aspiring middle class and retail investors.

In recent months, the acceptance of fractional ownership has jumped multifold and the same is visible with the transaction values. In a short span of five years, fractional ownership companies have done transactions worth Rs 750 crores across the country, according to JLL ‘Fractional ownership companies have created a new set of opportunities for retail investors.

“Despite the Covid-19 impact, out of the total fractional ownership market, approximately Rs 350 crore worth of deals have been transacted or in the final stage of conclusion in the last one year alone,” said Vishal Ahuja, India head, Private Health Group, JLL India.

 

NT Bureau