64% of HNIs Favour Fractional Ownership in Indian Commercial Real Estate (CRE)

Neo-Realty survey conducted by WiseX, a Neo-realty investments platform, it has been revealed that 64% of High Networth Individuals (HNIs), out of a total of 2174 respondents, prefer the fractional ownership model for investing in Commercial Real Estate (CRE) in India.

This finding underscores the growing popularity of fractional ownership as an investment avenue, particularly among affluent investors seeking exposure to the lucrative CRE sector. Fractional ownership has emerged as a favoured investment strategy in India, enabling individuals to own a fraction of a commercial property and benefit from rental income and capital appreciation without the complexities of property management. The survey highlights that 60% of all investors, representing a diverse spectrum of respondents, also endorse this investment model, indicating its broad appeal across the investor landscape. According to a recent report by Knight Frank, the market size of fractional ownership properties in India has witnessed remarkable growth, expanding by 65% since 2020 and projected to reach $8.9 billion by 2025. This surge can be attributed to regulatory reforms, including the introduction of Small and Medium Real Estate Investment Trusts (SM REITs), which have instilled greater confidence among investors in fractional ownership opportunities.

The survey delves into the preferences of HNI investors, revealing that Bengaluru emerges as the top choice (31%) for fractional ownership investments, followed by Pune (24%), Mumbai (22%), and Delhi NCR (13%). Additionally, the study identifies equities as the most favoured investment avenue among investors (61%), followed closely by modern real estate options like Real Estate Investment Trusts (REITs) and fractional ownership (45%). Furthermore, the survey indicates a bullish sentiment towards real estate investments, with 69% of HNIs expressing intentions to increase their exposure to real estate opportunities. This positive outlook underscores the confidence of affluent investors in the long-term potential of the real estate sector, driven by factors such as urbanisation, infrastructure development, and evolving investment regulations.

The Neo-Realty survey sheds light on the evolving investment preferences of HNIs, highlighting the growing allure of fractional ownership in CRE as a strategic investment avenue in India’s dynamic real estate landscape.