In India’s property market, the numbers have always spoken loudly. Apartments in Mumbai routinely cost upwards of ₹25,000 per square foot, while a commercial floor in Bengaluru’s technology corridor can command several crores. For decades, that scale effectively closed the door on smaller real estate investors but today the door is cracking open, quietly but decisively, through a new model of access: fractional ownership.
A handful of digital platforms are enabling investors to co-own parts of high-value properties, earning rental income and potential capital appreciation without purchasing an entire building or navigating the complexities of tenants, registrations, and paperwork. The concept itself isn’t new, but the timing and technology are. A decade ago, fractional ownership was often pitched as a luxury resort timeshare; in 2025, it has emerged as an investment product, attracting younger, data-driven investors who are comfortable managing their portfolios online.
What is fractional ownership?
Fractional ownership allows multiple investors to co-own an asset, such as a floor in an IT park or a luxury holiday villa, by splitting the purchase cost. Each investor holds equity through a special‐purpose vehicle (SPV) and earns their share of the rental income and eventual sale proceeds.
Industry intelligence estimates that India’s fractional real estate segment will reach around $500–600 million (approximately ₹ 4,000 crore) by 2025, with forecasts indicating more than $5 billion by 2030.
A generational entry point
Millennials and early Generation Z professionals, who have already embraced digital gold, ETFs and fractional stocks, are now exploring fractional property.
For many, the entry ticket is typically ₹10 lakh to ₹25 lakh. On most platforms, the investor completes KYC online, signs e-documents, transfers funds via UPI, and tracks rental inflows and yields on a dashboard. A further push comes from NRIs, particularly those based in the Gulf, who are using fractional platforms to participate in Indian real-estate growth.
Technology as an equaliser
What fractional ownership platforms have effectively done is merge prop-tech with wealth-tech. Blockchain-based record-keeping and AI-driven property valuation tools are improving transparency, while dashboards provide granular data on occupancy and rental cycles. The experience is less about brick-and-mortar, more about metrics and dashboards.
In states such as Maharashtra and Telangana, digital land registry pilots using blockchain technology are already underway. Once linked with the SM-REIT (Small and Medium Real Estate Investment Trust) frameworks, these could make property transactions tamper-proof and verifiable in seconds.
Beyond homes: The new asset classes
Most early adopters of fractional platforms are bypassing residential assets altogether. The sweet spot may lie in Grade-A commercial offices, logistics parks, co-living spaces and managed vacation properties, where yields are higher and occupancy more predictable.
This shift is also geographic. While Mumbai, Delhi-NCR and Bengaluru dominate listings, newer hubs like Pune, Ahmedabad and Kochi are emerging, aided by infrastructure growth and smaller ticket sizes.
Regulation brings legitimacy
Until recently, the biggest question surrounding fractional property was regulatory clarity. In March 2024, the Securities and Exchange Board of India (SEBI) notified the amendment to the REIT regulations introducing Small and Medium REITs (SM-REITs) aimed at regulating Fractional Ownership Platforms (FOPs). The framework mandates minimum asset size between ₹50 crore and ₹500 crore, at least 200 investors per scheme, and specifies appointed trustees and audit requirements.
The risk-return reality
Fractional property still sits between traditional real estate and financial securities, offering neither the complete liquidity of stocks nor the emotional satisfaction of owning a home. Exits depend on resale markets or platform-facilitated buy-backs, both of which are still evolving.
Returns vary with asset quality: stable commercial properties yield 8–10% annually, while niche assets, such as warehousing, can deliver higher returns. After management fees and taxes, net yields typically range between 6% and 7%, which is a steady rate. For most investors, however, the appeal lies less in chasing alpha and more in diversification.
One missing piece remains: a genuine secondary market. Today, most investors may hold for three to five years until the underlying asset is sold.
Tokenisation, digitally representing property shares as blockchain tokens, is likely to be the next frontier. But it will require regulatory clarity around digital securities. For now, industry watchers expect SEBI’s SM-REIT regime to pave the way for exchanges or alternative investment platforms dedicated to fractional real estate.
Note to the Reader: This article has been produced on behalf of the brand by HT Brand Studio and does not have journalistic/editorial involvement of Hindustan Times. The content is for information and awareness purposes and does not constitute any financial advice.