Can Fractional Ownership In Real Estate Be a Wealth Creator for Retail Investors?
Entrepreneur magazine|October 2023
Along with diversification, the smaller ticket sizes of a premium investment class make it attractive for retail investors
S SHANTHI
Can Fractional Ownership In Real Estate Be a Wealth Creator for Retail Investors?

A mainstream asset class in Western economies, 'fractional investment' or partial ownership in large properties, is today finding more takers in India as well. Though a fairly new trend, the asset class has already shown significant growth in the last few years. The market size of fractional ownership in India was $ 5.4 billion in 2020 and is projected to reach $8.9 billion by 2025, growing at a CAGR of 10.5%, says a report by Knight Frank.

The segment has seen the entry of many startups that are leveraging technology to find the right product-market fit and create effective business models in the space. Some of the active players in India include Hbits, Strata, Asset Monk, Property Share, ALYF, AURUM WISE X, among a few others. The prominent names in the US and UK include Roofstock, CrowdStreet, RealtyMogul, LexMarkets and London Fractions, British Pearl respectively.

RISE OF FRACTIONAL OWNERSHIP: THE KEY DRIVERS

It is exciting for retail investors to gain "ownership" of premium properties that are well beyond their budget and it helps in the diversification of their investment, say experts from the sector and VCs closely watching it. Further, the small ticket sizes allow retail investors to take a bet on a small sum, thereby reducing the risk. This explains the heightened interest among retail investors. "It provides diversification and the smaller ticket sizes make it attractive for retail investors. Separately, platforms that enable this investment take care of the diligence and other formalities, making it easy for the end investor," says Ratna Mehta, an ex-Everstone executive director and an experienced VC investor.

Denne historien er fra October 2023-utgaven av Entrepreneur magazine.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra October 2023-utgaven av Entrepreneur magazine.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA ENTREPRENEUR MAGAZINESe alt
Data Breach Drama: When Trust Turns Costly In A Digital Age
Entrepreneur magazine

Data Breach Drama: When Trust Turns Costly In A Digital Age

Amid data breaches surges, Indian businesses are prone to financial and reputational fallout. Can cyber insurance emerge as a safeguard?

time-read
4 mins  |
November 2024
THE TERRAIN TAMER
Entrepreneur magazine

THE TERRAIN TAMER

Spearheading a California-based, Series D SaaS company is no easy feat. It requires a blend of ownership, innovation, and the ability to handle stress. But Anand Jain, co-founder and chief product officer of Clever Tap, finds his calm by escaping to rough terrain whenever he gets the chance-be it India or Colombia.

time-read
2 mins  |
November 2024
THE INTELLIGENT READS
Entrepreneur magazine

THE INTELLIGENT READS

Hardika Shah founded Kinara Capital in 2011 with the mission to address the acute credit gap in the micro-small-medium-enterprises (MSME) sector in India, by providing fast and flexible business capital to small business entrepreneurs. Despite operating in highly competitive and tough market of collateral free loans, Kinara Capital has been steadily growing in Hardika's leadership. In conversation with Entrepreneur, Hardika shares insights on her favourite books.

time-read
1 min  |
November 2024
THE CURSE OF GROWING TOO FAST
Entrepreneur magazine

THE CURSE OF GROWING TOO FAST

FAIRE is a platform for small businesses, but it grew big the wrong way-almost becoming a $12 billion wreck. Here's how it fixed the problem, and why you should think twice before skyrocketing.

time-read
10+ mins  |
November 2024
There's No Perfect Answer
Entrepreneur magazine

There's No Perfect Answer

I worked the same job for 19 years. I hated it, but it paid the bills. Then, in 2017, I entertained an exciting but terrifying question: Could I be an entrepreneur? I wasn't sure, so I needed something that felt like a guarantee. I searched for signs that would feel like a big, clear \"yes!\"

time-read
1 min  |
November 2024
HOW TO ASK FAMILY FOR MONEY
Entrepreneur magazine

HOW TO ASK FAMILY FOR MONEY

Your friends-and-family fundraising round doesn't have to be scary and awkward. Here's advice from one of the world's leading investors.

time-read
2 mins  |
November 2024
Give Yourself the Gift of Time
Entrepreneur magazine

Give Yourself the Gift of Time

Happy holidays! Emmy Award-winning tech expert Mario Armstrong has five recs to get more hours in the day.

time-read
2 mins  |
November 2024
How to Become a Main Street Millionaire
Entrepreneur magazine

How to Become a Main Street Millionaire

It started when I bought one little laundromat. Now I have a whole portfolio of small local businesses that bring in tens of millions in revenue a year. Here's why following my playbook could be your ticket to financial freedom-and saving America's local small businesses.

time-read
5 mins  |
November 2024
Want to Better Serve Your Clients? Become Them.
Entrepreneur magazine

Want to Better Serve Your Clients? Become Them.

As a designer for brands, starting my own product company gave me a dose of humility-and it changed the way I relate to clients.

time-read
3 mins  |
November 2024
How to Succeed With Gen Z Workers
Entrepreneur magazine

How to Succeed With Gen Z Workers

People often say that younger employees are different. But are they? We asked six business leaders what they've learned, and how their teams thrive.

time-read
2 mins  |
November 2024