What is Fractional Ownership?
Fractional Ownership allows multiple investors to pool in capital to buy a high-value, Grade-A commercial property (which would normally cost ₹50 Crore) through a digital platform. Investors become shareholders in an SPV company that technically owns the property. The minimum ticket size is significantly lower than buying outright.
Key Risks
- Illiquidity: Unlike REITs on a public stock exchange, selling your fractional shares requires finding another buyer on the platform's private secondary market.
- Platform Dependency: You rely heavily on the fintech platform (like Strata, hBits) for property management, tenant negotiations, and ultimate sale execution.