In any industry, technological innovations bring about significant changes in consumer behavior and preferences. Convenience and easy access to information now dominate consumer demand. While these technologies have revolutionized the way we analyze consumer behavior and identify potential investors, blockchain introduces new ways to connect buyers and sellers, minimizing intermediaries. We have reduced transaction costs.
One notable innovation in real estate is fractional ownership, which allows multiple investors to jointly own luxury commercial real estate that was once the exclusive domain of ultra-high net worth individuals (UHNWIs) and institutional investors. . By reducing both cost burden and risk exposure, fractional ownership is emerging as a revolutionary entry point into the commercial real estate (CRE) market for middle class and new generation investors. This model allows small investors to participate in his CRE market, learn smart investment strategies and achieve their financial goals.
Transparency and security through fractional ownership
The convergence of real estate, finance, and technology has bridged the information gap in India's CRE market and increased transparency for investors. Improved technological tools have also reduced the likelihood of cybersecurity breaches, making the investment process transparent and secure. Proptech platforms promote equality by democratizing access to CRE investing, allowing average investors and new generations of investors to benefit from stable opportunities and predictable cash flows. Masu.
Growing interest among NRIs in compartmentalized ownership
Stable rental income, hassle-free investment and long-term capital growth are the main reasons why fractional ownership platforms are attracting great attention from investors, including Non-Resident Indians (NRIs). According to a recent industry survey, nearly 34% of NRIs are attracted to his CRE investments due to higher returns, while around 48% cited various convenience factors as motivation. Fractional ownership allows NRIs to invest from anywhere, making it more attractive.
Historical background and future possibilities
Around 2018, the concept of fractional ownership in commercial real estate in India was in its infancy. As of 2023, the Indian fractional ownership market is witnessing remarkable growth. It is estimated to be a rapidly expanding field, expected to exceed $5 billion by 2030. This growth is being driven by technological advances, increased acceptance of alternative investment vehicles, and formalization of the regulatory framework. The introduction of Small and Medium Real Estate Investment Trusts (SM REITs) by SEBI has provided much-needed regulatory clarity and investor protection, further strengthening market confidence and participation.
CEO and Founder
FOIP
The future of fractional ownership in India looks promising. With ongoing technology consolidation and a supportive regulatory environment, the sector is expected to continue to see strong growth. The market is expected to further democratize real estate investing, allowing even small investors to benefit from the high returns traditionally associated with commercial real estate.
Seamless transactions with Proptech
The proptech company has developed an integrated platform that facilitates seamless end-to-end transactions for fractional ownership. These platforms allow investors to explore multiple opportunities, invest, and conveniently monitor their investments. The use of digital signatures, e-KYC, and other technological tools has transformed the fractional ownership investment process by making online transactions fast, transparent, and secure.
The role of proptech platforms in India
Various proptech platforms in India are driving the popularity of fractional ownership by bringing together investors to invest in CRE real estate, offering attractive returns, liquidity, and capital gains. These platforms effectively manage payments and distributions to fractional investors. Innovations such as virtual real estate tours, machine learning, predictive analytics, and data science give investors easy access to relevant real estate information, catering to the preferences of new-age, tech-savvy investors.
As technology continues to transform the real estate industry, it will play a pivotal role in the future of fractional ownership excellence. In summary, technological advances are having a major impact on the real estate industry, with AI and blockchain leading the way. Fractional ownership facilitated by proptech platforms democratizes CRE investing and opens new opportunities to a wider range of investors. As technology continues to evolve, it will undoubtedly drive further innovation and make fractional ownership an increasingly attractive option for investors around the world.
