**Fractional Real Estate Soars: NRIs, Millennials, and Smart Investments**
As India’s real estate terrain transforms, the **fractional ownership model** is gaining substantial traction. This innovative approach is particularly appealing to retail investors, Non-Resident Indians (NRIs), and High Net-Worth Individuals (HNIs) eager for smarter investments. But what makes this model so attractive?
### A Market Poised for Takeoff
According to **Manisheel Gautam**, Chief Marketing Officer at [Alt DRX](https://m.economictimes.com/topic/alt-drx), India’s fractional real estate market is valued at an impressive **$1 billion**. “While the overall real estate deployment in India stands around **$100 billion annually**, the digital segment is still in its early stages,” he states. The market is projected to grow at a staggering **30-40% year-on-year**, driven by enhanced accessibility for retail investors.
For context, the **U.S. market** has made significant strides, with top players deploying over **$4 billion** in tokenized and fractional real estate. This shows just how massive the potential is when this model scales effectively.
**Aditi Watve**, President of Investment Sales & REIT Advisory at ANAROCK Group, adds that the Indian fractional real estate market was valued at approximately **INR 4,000 crore** just two years ago. With a **25-30%** annual growth rate, it’s poised to exceed **INR 41,500 crore** within the next five years—provided the regulatory environment adapts accordingly. Globally, this sector is expected to hit an astronomical **USD 4.8 trillion** this year, growing at an annual rate of **26%**.
### Who’s Driving the Demand?
The demand for fractional real estate is primarily fueled by **retail investors, tech-savvy millennials, and NRIs**. Watve notes that investors are keen on premium commercial properties in bustling urban centers like **Mumbai, Bengaluru, and Delhi-NCR**. The fractional ownership model enables access to high-value assets without hefty upfront costs.
NRIs, in particular, find this model compelling due to India’s strong rental yields and capital appreciation potential. They increasingly leverage digital platforms that simplify the investment process by managing property selection, due diligence, and ongoing asset management.
### Hotspots for Fractional Ownership
The trend is most pronounced in the **South and West** of India. According to Gautam, regions such as **Goa, Karnataka, Tamil Nadu, Telangana, and Maharashtra** are spearheading fractional real estate initiatives. Here, **Tier-1 cities and warehousing hubs** have emerged as hotspots.
The ongoing e-commerce boom and infrastructure development have ignited demand for warehousing, providing lucrative opportunities for both retail and institutional investors within this space.
### The Way Ahead!
With increasing awareness, enhanced digital infrastructure, and evolving investment preferences, India’s fractional real estate market stands on the brink of **rapid expansion**. Watve summarizes it succinctly: “With the right regulatory clarity and sustained investor interest, this model could redefine property ownership in India—making it more inclusive, liquid, and technology-driven.”
*(Disclaimer: Recommendations and opinions expressed by experts are their own and do not represent the views of the Economic Times.)*
