Fractional investment in real estate in India is a legal investment model that allows multiple investors to co-own a high-value property by purchasing a share or "fraction" of it through digital platforms. This makes premium assets like commercial offices, warehouses, and luxury homes accessible to a wider range of investors for a lower initial capital investment.
How It Works
Fund Pooling: Multiple individuals pool their funds to collectively buy a high-value property that would otherwise be unaffordable for a single person.
Ownership Structure: The property is typically owned through a legal entity like a Special Purpose Vehicle (SPV) or Real Estate Investment Trusts (REITs). Investors receive shares or units in this entity, which represent their proportional ownership in the physical asset.
Professional Management: A fractional ownership platform (FOP) or an appointed investment manager handles all aspects of property management, including tenant acquisition, maintenance, and compliance, providing a passive income stream for investors.
Returns: Investors typically earn returns in two ways:
Rental Income: Regular passive income distributed in proportion to their share.
Capital Appreciation: Profits from the increase in the property's value when it is eventually sold (exit).
Key Benefits
Lower Entry Cost: Investors can access premium real estate with a minimum investment, often starting from around ₹10-25 lakhs on many platforms.
Diversification: The model allows investors to diversify their real estate holdings across multiple properties, locations, and asset types (e.g., office, retail, residential), which helps in spreading risk.
Passive Income: It offers a hassle-free way to earn rental income, as the management is handled by professionals.
Regulatory Oversight: The Securities and Exchange Board of India (SEBI) has introduced regulations for Small and Medium REITs (SM REITs) to bring transparency and investor protection to the sector.
For Investment options please check on Link
Disclaimer: ANV REEALTY is only an intermediary offering its platform to advertise properties of Seller for a Customer/Buyer/User coming on its Website and is not and cannot be a party to or privy to or control in any manner any transactions between the Seller and the Customer/Buyer/User. All the prices or rates on this Website have been extended by various Builder(s)/Developer(s) who have advertised their products. Company shall neither be responsible nor liable to mediate or resolve any disputes or disagreements between the Customer/Buyer/User and the Seller and both Seller and Customer/Buyer/User shall settle all such disputes without involving Company in any manner.