$1 bn and counting! Fractional Real Estate booms as NRIs, millennials seek smarter investments
India's fractional real estate market is rapidly expanding, driven by rising retail, NRI, and HNI participation. Fueled by digital access, attractive yields, and professional management, the segment could grow 10x in five years if regulatory support improves.
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A Market Poised for Takeoff
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Who's Driving the Demand?
Hotspots for Fractional Ownership
The Way Ahead!
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As India's real estate landscape continues to evolve with the rise of digital platforms, the fractional ownership model is gaining significant traction among retail investors, NRIs, and HNIs.The combination of professional asset management, improved accessibility, and attractive yields is pushing this niche segment into the mainstream.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 staggering 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.': Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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