Fractional Investments in Commercial Real Estate – Feasible or Not?

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Fractional Investments in Commercial Real Estate – Feasible or Not? With the global economic shift in the last few years, ample investment unconventional opportunities have opened up for the concerned investors. More than looking for strategies and stocks to earn a quick buck, individuals are now more focused on steady, long-term sources, especially sources that’d withstand themselves in the face of an economic stock. Whether you are looking for a promising retirement plan or to accomplish your financial aspirations, one option that seems more than favorable for the diverse crowd of investors is Fractional Property Investment specifically in the area of Commercial Real Estate, which only recently entered the Indian economy and has already escalated its position significantly. So, what is Fractional Investment? It is simply an idea where instead of investing a massive sum on some commercial asset, multiple investors unrelated to each other come together and invest in a property in proportionate equities. In this process, an SPV (Special Purpose Vehicle) is created which holds these equities for the shareholders to invest in and generate regular stable incomes, usually including an increment in value after a certain period (often 3 years).

Fractional Ownership is Gaining Steady Momentum as an Investment Avenue and here’s why  Fractional Ownership in India may have only recently caught the craze of the Indian Market. However, this concept isn’t new for the global market. Countries like Canada, the USA, Japan, including countries in the Middle East have long seen the rise of Fractional Ownerships in CREs. Being a popular global trend in the investment market, it provides incomparable valuable advantages which have made it extremely popular among investors of all class incomes.  That brings us to the most attractive factor about fractional ownership. While the real estate market for the longest part remained limited for individuals who’ve accumulated a certain amount of wealth, especially with CREs. However Fractional Ownership has


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