Imagine this: you’re 29 years old, living in a metro city- Your typical day involves a quick run in the morning, getting into the office since you’re not WFH that day, ordering a takeaway lunch—maybe a salad and sandwich—hanging with your ‘crew’ in the evening at a café, quick dinner, scrolling Instagram before bed (for longer than you admit), and getting off to bed by midnight!

Now, as a millennial, as you navigate the hustle and bustle of urban life in the crowded metropolis, the dream of owning a piece of real estate has often felt like a distant star in a crowded sky. 

So, would the idea of owning a home ever occur to you? I don’t think so! That could never be you—you’re making a decent sum from work and your side gig, for sure—but owning a property—nah!

That’s ”adulting”—something your 50 year old parents would do, right? The very thought of owning a home is just a far-off dream. What with the sky-high property prices, hefty down payments, and the burden of long-term mortgages- it’s all too much for you and your lifestyle!

But what if I told you there’s a new avenue emerging, one that’s reshaping the landscape of real estate ownership for people like you—the millennials? Enter fractional real estate—a game-changer that’s turning the dream of owning property from a distant fantasy into a tangible reality. That’s cool! Right?

Gone are the days when the only option was to either rent or plunge headfirst into the deep waters of traditional real estate ownership. Fractional real estate is the innovative solution that’s bridging the gap between renting and owning, offering millennials, like you – a slice of the property pie without breaking the bank or tying yourself down to a single location. Say what!?

Fractional Real Estate: What’s That?

So listen up! What exactly is fractional real estate, you ask? Think of it as the Airbnb of property ownership, but with a long-term investment angle. Instead of buying an entire property, pool your resources with other like-minded individuals to purchase a share of high-value properties, such as apartments, villas, or commercial spaces. This shared ownership model opens doors to properties that would otherwise be out of reach for you. So you can now invest in prime locations and premium amenities without the hefty price tag. Groovy, isn’t it?

Now, one of the biggest advantages of fractional real estate is the flexibility it offers. Unlike traditional real estate, where you’re locked into one property for years on end, fractional ownership allows you to diversify our investment portfolio across multiple properties and locations.

From the trendy high rise you’ve been eyeing to the cool condo you pass on your way to work, the possibilities are endless. The amazing thing is that the flexibility not only caters to your ever-changing lifestyle but also provides a safety net against market fluctuations, especially given the unpredictable economic climate.

But it’s not just about financial flexibility; fractional real estate also unlocks a world of realistic benefits. Imagine co-owning a luxurious beachfront villa in Alibaug with friends, where every weekend feels like a mini-vacation. Or investing in a commercial space in the heart of the city, watching as your property becomes a bustling hub of entrepreneurial activity. These shared experiences add an extra layer of fulfilment to the investment journey, transforming it from a mere financial transaction into a lifelong adventure.

Affordability: Millennial’s New Friend

Of course, no discussion of real estate would be complete without addressing the elephant in the room: affordability. For millennials like you- grappling with loans, rising living costs, and stagnant wages, the prospect of saving up for a traditional down payment can feel like an uphill battle. But that’s where Fractional real estate offers a more accessible entry point, allowing you to invest smaller sums of money upfront while still reaping the rewards of property ownership. It’s a win-win situation that democratizes the real estate market and empowers a new generation of investors.

But don’t just take my word for it—let’s delve into some statistics to paint a clearer picture of the growing trend of fractional real estate in India. According to recent data, the market for fractional ownership is projected to reach unprecedented heights in the coming years, with an estimated CAGR of over 30%.

This exponential growth is driven by a combination of factors, including increasing urbanization, changing consumer preferences, and technological advancements that make fractional investing more accessible than ever before.

What’s more- a survey conducted among millennials across major Indian cities revealed that over 70% expressed interest in exploring fractional real estate as an investment option. The allure of shared ownership, coupled with the promise of higher returns and lower financial barriers, has struck a chord with a generation that values experiences over possessions and seeks innovative solutions to age-old challenges.

 

 

Concluding Thoughts

In my own journey towards real estate ownership, fractional investing has emerged as a beacon of hope—a tangible pathway towards building wealth and securing my financial future. It’s not just about owning bricks and mortar; it’s about embracing a new mind-set, one that prioritizes flexibility, collaboration, and innovation. With fractional real estate, the dream of home ownership is no longer a distant mirage but a tangible reality within reach.

Fractional real estate represents a paradigm shift in the way you can approach property ownership in India. By offering a middle ground between renting and traditional ownership, fractional investing empowers us to unlock the doors to prime properties, diversify our investment portfolios, and forge lifelong memories along the way. So, if you’re a millennial and have dreams of owning real estate, take heart—your journey begins here, with fractional real estate leading the way to a brighter, more inclusive future. 
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About the Author:

Avanne Dubash, Consultant Anchor at ET NOW, holds over 15+ years of experience as a Prime Time Business News Anchor with ET Now. Renowned for hosting major events like The India Economic Conclave, she conducts insightful interviews with top market voices on ‘The Market & First Trades’ and engages with industry leaders on ‘Startup Central,’ alongside contributing her perspectives across various platforms.