Commercial real estate has always been a booming industry in India and has the best commercial property investment opportunities available. With the policy reforms, institutional investments, foreign partnerships and growth in the IT and services sector, the real estate market has shown stable growth in the past decade too. With this real estate investment opportunities have also increased. It is the second-highest employment sector in India and has been a major contributor to India’s economic growth. The investors are keen on India’s growing commercial office market and market fundamentals and are quite confident about them making sheer investments into commercial property assets.
The recent transactions of Blackstone investing $1.5 billion into Prestige’s Commercial assets and Brookefield buying RMZ’s commercial assets for Rs.14,000cr in the post pandemic world are a testimony to that.
With several notable government initiatives like Make in India, reforms that include RERA and GST, and coming of Real Estate Investment Trustees(REIT) and invIT, India is expected to exhibit a prominent growth in the commercial segment. However, the pandemic has affected all the predictions and functioning of the overall economy in India too, just like the other countries. But the most recent trend that gained acceptance in the real estate industry has also become the real star saver in the real estate investment and iIt is “FRACTIONAL INVESTMENT”
Fractional investment is the new, feasible type of commercial real estate investment where several small-scale investors pool in their money and buy a Grade A property jointly. It is a scheme that works perfectly for the investors. According to a few experts, there are high chances of this trend to be all up in the market by 2025. Fractional investment is a kind of safe commercial real estate investment where the investors get to enjoy the benefits of owning a pre-leased Grade A commercial property without any hassles. The assets are typically vetted legally and gone through rigorous checks on statutory and regulatory clearances.
According to the current Indian commercial real estate market scenario, fractional ownership is one of the best commercial property investment opportunities in the commercial real estate market. It is because fractional investment lets buyers invest in fractions, earn a monthly rental income, and guarantee a long term assurance of wealth. The investors receive their rental income in proportion to the stakes invested in the property, on a regular basis. The capital appreciation attained during the sale of the possession is also shared among the investors based on the same criteria.
The advantages of fractional ownership is not just limited to owning an institutional grade commercial real estate property at a great price. Fractional investment is observed as the ideal way of investing in premium CRE properties, for the following reasons.
- Monthly rental income
- You will end up building long term wealth
- Appreciation of a fixed asset
- Freedom to diversify your investment across multiple properties in prime locations
- Minimum lock-in period of investment
- Stakes can be sold at any point of time in the resale platform
Fractional ownership is still in its primeval phase in India. However, the concept is picking up and has gained importance in established markets like USA, Singapore & Hong Kong already as it involves only minimal risks and the investment is backed by a tangible asset. YieldAsset is one of the most trusted platforms that bring fractional investment to small and marginal investors. It is the best platform to rely on for small and secure investments that give high yields.