Queries

Fractional Ownership Is Too Risky For Retail Investors Jagdeep Singh Is it safe to invest in commercial real estate by way of fractional ownership? I do not want my investment to remain locked up in real estate for too long, maybe 3-5 years, at most. Fractional ownership in commercial real estate is a relatively new concept. The company offering it comes under the ambit of the Registrar of Companies (RoC) under the Ministry of Corporate Affairs. The investment portal offering the services has to obtain a licence from the Real Estate Regulatory Authority (RERA) for operations. All payouts, including rental income and proceeds from sale of the property are managed by the trusteeship company. That said, these platforms do not guarantee returns, but only offer indicative returns for the property. Fractional ownership is highly risky, as the investment is both thematic and sectoral. In the...