Fractional ownership of real estate mega-projects on the rise post Covid lockdowns

As a result of consecutive Covid-induced lockdowns, the Indian economy took a nosedive. With it, it took the real estate sector down too. However, a ray of hope has emerged in the realty sector with the rise of fractional ownership of mega-projects. According to data compiled by hBits, a fractional ownership realty firm, fractional ownership has been rising over the last five years with an estimated total transaction of Rs 750 crores. Of this, Rs 350 crores worth of transactions took place in the last one year, i.e., after the first Covid lockdown was imposed. “The idea of fractional ownership provides a fair chance of investment in mega-projects. Common people who are willing to spend on commercial properties like shops and offices but have limited finances and options and are apprehensive about the returns are now opting for fractional ownership. In fractional ownership cases, the realtors provide guaranteed returns. Additionally, every bit of information about the property is available at your fingertips - literally. Investors can track real-time developments in the project on their mobile phones,” said Shiv Parekh, the founder of hBits. ALSO READ: Real estate developers in UP demand 12 more months to complete projects “It is estimated that over the next three years, the fractional ownership market's worth will reach five billion dollars. This is a shot in the arm for the real estate industry,” he continued. According to experts, apartment-dwellers across the national capital region, who are looking to invest in commercial properties like shops and offices to gain a secondary income, are now opting for fractional investment due to its relatively safe procedure in attaining ownership of multi-crore mega-projects. “A common apartment-dweller who is interested in investing in commercial spaces is usually hesitant due to the slump in the market. But since fractional ownership gives an opportunity to invest in more promising mega-projects, it is drawing the attention of such investors. We have received many queries about fractional ownership in recent times. Due to the consecutive lockdowns, investors are looking for safe investment options and fixed assured returns,” said Ujjwal Mishra, a property expert and the owner of Blue House Consultancy. Source: India Today