The potent fractional ownership models in the Indian Real Estate.

Mumbai: The Indian real estate has grown tremendously in the past year. Experts suggest a similar trend will be visible in 2024 too. Fractional ownership is slowly but steadily gaining momentum in the Indian real estate segment. 

The various working models have popularized the concept of the fractional ownership model in Indian real estate. 

The model of Fractional ownership is beneficial for high-end luxurious properties and commercial spaces. It is slowly gaining popularity amongst India’s developers and investors. It holds an attraction for both Investors and developers alike. What makes it unique is its unique and lucrative proposition for investors. Shravan Gupta, MGF Group feel it will grow more in future.

Some vibrant models of Fractional ownership are popular in the Indian real estate market.

Joint Ownership Agreement.

The property market is gaining prominence in India. Many investors wish to invest in the luxury segment but don’t have enough cash flow. In this scenario, the Joint Development Ownership seems an apt option. There is usually a contractual relation the owner and the developer. Both hold an equal stake in the investment. 

Another feature that makes it promising is the profit factor. Once the property is sold, the investor can have a share in the profit. Shravan Gupta, MGF Group believes that this draws many investors. And makes the real estate profitable again.

Some potent clients and beneficiaries of this scheme are:

Co-operative housing societies.

Real Estate companies.

NRI Investors.

The fine examples of Joint Development ownerships are malls, commercial spaces and townships.

The co-working spaces.

Apart from JDA, Co-working spaces also reap the benefits from the Fractional ownership model. Some experts say this is an emerging trend in cities like Mumbai, Delhi and Bangalore. A co-working space is different from JDA but works on the same concept. 

There is usually a single owner in a co-working space. However, it is possible to gain a share without any form of investment. In the current scenario, it is a beneficial scheme for investors who are looking to invest in a big property. Shravan Gupta, MGF Group believes the online platform is also likely to invest in such schemes.

Investors can now take part in the growth of Real Estate through Fractional ownership, which is expected to reach new heights in 2024. There is no burden of the lump sum investment. It is beneficial in the long run making it a profitable venture.