Indian startups are democratizing fractional ownership of prime commercial real estate by allowing singular small size investments
For young Indians, traditional ways of saving money such as low-yield bank bonds and gold are no longer attractive. Instead, the allure of higher returns in a short time period is prompting them to explore investment avenues such as mutual funds and real estate. Specifically, fractional ownership is gaining popularity with young Indians and a few Indian startups are democratizing this age-old investment method through technology.
Democratizing Large Scale Investments
Fractional ownership is the combined ownership of a single asset by multiple investors. Usually, every investor buys a certain percentage of the property and is legally registered as a co-owner. According to the India Law Journal, fractional ownership has been successfully implemented in Europe, Africa and the U.S but it is a relatively new concept in India.
Now, startups such as PropertyShare.in are popularizing fractional ownership in India by enabling small ticket investments in high grade developments in metros such as Bangalore, New Delhi and Mumbai. Cofounders Kunal Moktan and Hashim Khan wanted to build a platform that allows small ticket investments as low as $15,000 in high grade Indian real estate, at a time when the base investment amount ranges between $1 million to $6 million.