Construction Industry News
The 2024 edition of the Neo-Realty survey conducted by WiseX revealed that 60% of all investors (out of 6,578 respondents) and 64% of high net worth individuals (2,174 high net worth respondents) prefer the fractional ownership model for venture business investing . Real estate (CRE) in India. Fractional ownership has emerged as a new investment model in India in recent years, with real estate properties gaining momentum as a growing asset class that allows investors to generate consistent passive income from long-term rentals, along with capital appreciation. In support of this trend, a recent report issued by Knight Frank revealed that the size of the fractional ownership real estate market in India has increased by 65% since 2020, reaching $8.9 billion by 2025.
Recent amendments to REIT Regulations Will Include SM REITs are also contributing to the confluence of the rise of fractional ownership. A WiseX survey of affluent investors shows that 60% of investors who had not previously invested in fractional ownership believe that regulatory support provided by SEBI has boosted their confidence in fractional ownership investments. Although commercial real estate investing has always been affordable, better regulatory oversight has boosted confidence in it.
The survey indicates that Bengaluru is the preferred location for high net worth investors (~31%) to make fractional ownership investments. , followed by Pune (~24%); Mumbai (~22%) and Delhi NCR (~13%). The WiseX survey also revealed that 61% of investors found stocks to be the most profitable in the past financial year, followed by innovative and modern real estate investments such as REITs and fractional ownership (45%), and mutual funds (39%). And traditional. Real estate (35%). In addition, 69% of HNWIs plan to increase their investments in real estate opportunities, indicating an optimistic outlook in this sector.
The survey also indicates that actual investments in fractional ownership through technology platforms provide an excellent track record of paying On time, which makes it a major reason for the high investment in these models. Among investors who have not yet made a fractional ownership investment, the biggest concerns were related to liquidity for about 30% of investors. The survey revealed that the majority of investors prefer real estate investments with a medium-term perspective, from 1 to 3 years (20%) and from 4 to 6 years (55%).
Speaking about the new properties survey, Aryaman Veer, CEO, WiseX, said: “Over the past decade, the investment landscape in India has witnessed a transformation in terms of demographics, technological advancement and whether there has been growth. On individual disposable income Investors are now increasingly open to exploring new investment options to earn better returns. Our 2024 edition of the new Real Estate Survey provides insights into the alternative investment space and industry trends, highlighting how affluent individuals of different income levels are shaping their financial strategies The recent report on SM REIT improves the liquidity and security levels of investing in real estate and also makes it more accessible to investors.
He added: “Despite the inclination towards stocks and mutual funds, there is increasing evidence of investor interest in investing in real estate investments, as Stable asset class. As a leader in the fractional ownership industry, it is encouraging to see that sentiment towards fractional ownership has grown positively over the past three to four years. While Bengaluru, Pune, Mumbai and Delhi NCR are the major markets for real estate investments in India, we continue to witness huge demand for real estate investments from other tier I and II cities as well. We believe that SEBI's recent approval to regulate the fractional ownership framework, coupled with the reduction in the minimum investment to Rs 10 lakh, will further help in democratizing real estate, a traditional asset class, for more investors
