How Fractional Ownership Real Estate India Balances Returns and Challenges
Fractional ownership real estate in India allows small investors to pool funds via special purpose vehicles to own high-value properties, reducing capital barriers.
Offering rental yields and potential capital gains, it appeals to those seeking portfolio diversification.
However, risks persist, including opaque pricing, legal complexities, and disputes, as seen in a recent case with Strata, where mid-project changes diluted investor shares.
Additional costs like property taxes and repairs, plus liquidity constraints in niche segments like warehouses or vacation homes, add to the challenges.
With promised returns of 12-18% IRR, fractional ownership real estate India carries high risks, including potential legal disputes over titles, requiring careful evaluation of lock-ins and post-tax returns before investing.
Read More at Moneycontrol
