Fractional Ownership in India
A fractional ownership platform invites investors to own fractions of high-value properties that suit their needs. With this, commercial real estate has seen an annual appreciation of 11.6% in India over recent years. There is a greater demand for hard assets when inflation rates are high. In India, Institutional Foreign Funds and HNIs own and invest in 85% of commercial real estate, leaving minimal opportunities for retail investors. As Foreign Investors take advantage of Brookfield, Black Stone, and Maple Trees, few fractional ownership companies in India are able to offer a fractional ownership investment opportunity to disrupt this space.
Barriers to entry for Retail Investors in CRE
1. High ticket size: An A-grade property can cost up to 40 to 50 crores. This extremely high ticket size makes it a challenge for retail investors to participate without the necessary funds.
2. Lack of expertise: Retail investors often don’t have extensive knowledge about building, micro-market dynamics, supply and demand evaluation, and tenancy rate.
3. Lack of liquidity: Investors usually prefer options that are more liquid, to allow ease of exchange. Traditionally, liquidity was only in question during property sales.
4. Tenant management: Real estate investment and management are found to be complicated and time-consuming for the reason that tenant management requires negotiation and legal work, which investors might not have the expertise for.
5. Property management: Fractional property investment includes investing in the property and its future. Property management would thus require a building management team, risk mitigation, and regular structural evaluation.
The solution to navigating past these barriers of entry is choosing Fractional Ownership investments. Investing in Fractional Real Estate allows retail investors to level themselves with institutions and fund houses in terms of participating in investment opportunities that are at the same competitive platform.
What MYRE Capital does
- Myre combines the small ticket amounts of a large number of investors, accumulates a quantum to pursue hard assets, and gives investors an opportunity.
- Myre is able to provide liquidity without being contingent on the sale of properties before selling shares by dealing with ticket sizes of 25 lakhs. This gives them a larger target market.
- Myre provides end-to-end management by identifying, shortlisting, coordinating, completing all the legal work, structural diligence, tenant negotiations, and building maintenance.
Ever invested in mutual funds? Investing in Fractional Ownership Commercial Real Estate is just as simple and effective! The many benefits to this type of investment include higher yields by eight to 10% and annual appreciation of rates for assets you have invested your money in. These Grade-A assets do not default since they are secured by quality MNC tenants. Here’s how it works:
● A potential investor logs onto the Myre Capital platform identifies an opportunity and completed the KYC processes
● Myre reviews documents and curates a legal diligence report.
● With the potential investor’s agreement, documents are signed and funds are transferred, turning potential investors into actual investors
● This process can be completely digital or manually under the guidance of investment managers.
Fractional Ownership Commercial Real Estate in India focuses on retail investors. Fractional Investments companies in India seek more reliable sources of funding to promote commercial real estate as an asset class for credible developers in the country.