TruBoard Partner has projected a 25-30 per cent compounded annual growth rate (CAGR) in the AUM of the fractional ownership market over the next 4-5 years.Ĭommenting on the report, Shravan Gupta, Founder and CEO, YOURS, said, "Fractional ownership of real estate specially in luxury homes is now getting greater interest in India and is growing at a fast pace." Investors and lifestyle seekers are both getting attracted to this new instrument, he said, adding that this gives an opportunity for more people to participate in this unique asset class. The fractional ownership market, which is the total asset under management (AUM) by all these platforms, in India jumped from Rs 1,500 crore in 2019 to Rs 4,000 crore in 2023, it added. "Although the concept of fractional ownership of real estate is at a nascent stage in India, it is expected to grow in the next few years aided by tech-driven platforms," Sangram Baviskar, MD, Real Estate Practice, TruBoard Partners, said. These platforms provide a formal channel that enables a group of people to pool in money and jointly own real estate. Investors infuse their fund in securities issued by a Special Purpose Vehicle (SPV), established by the fractional ownership platform. This lowers capital requirements and facilitates participation of a larger set of players in real estate asset ownership," the report said. "Fractional ownership typically involves the ownership of an underlying real estate asset among multiple investors. Many private companies have set up fractional ownership platforms that allow investors to own a fraction of real estate assets. TruBoard Partners, a tech-enabled real asset management company, has come out with a report on fractional ownership. Fractional ownership of real estate is gradually gaining acceptance among investors as assets under management have touched Rs 4,000 crore, according to a report.
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