FRACTIONAL OWNERSHIP: NEW ERA OF COLLABORATIVE INVESTMENT
Post pandemic, the world has emerged having adapted and transformed to a more digitally savvy and technologically integrated ecosystem. This change has gradually but surely weaved itself into all aspects of our lives - from the way we do everyday activities; to the way we engage with the world; and most importantly the way we invest our savings and wealth. The sharing economy is a well-known idea that has become increasingly prevalent and utilised in almost all sectors including the new technology savvy investments paradigm. One of the key intrinsic attributes of the sharing economy is its ability to harness the power of the masses and democratise access and ownership. It offers a new way of sharing resources, goods, and services and enables everyone to work together and utilise their resources for the advantage of all. According to a report by Brookings India, the size of the shared economy is predicted to reach $335 billion by 2025. This idea gave rise to an array of platforms, including Uber, Lyft, Airbnb, Udemy and eBay, which allowed people to connect and exchange goods and services with one another. Fractional ownership framework is one of the more widely used applications of the shared economy. Fractional ownership in real estate has particularly evolved the entire investments and ownership landscape in the sector. Previously marquee Real Estate Investment Assets were out of reach for most investors due to the high ticket size requirements, asymmetry of information, and other barriers to entry. Today, cutting edge Neo-Realty and fractional ownership platforms are eroding these barriers to entry and levelling the playing field by enabling retail investors to pool their resources in bite sized quantum and participate in similar institutional grade investment opportunities. Neo-Realty platforms like MYRE Capital are providing access to curated institutional grade opportunities with end-to-end management with minimum investment sizes of INR 15 Lakh. This revolution is driving significant capital to the sector and is becoming a catalyst for growth for the entire sector! Investing platforms that offer fractional ownership provide investors with a number of advantages, including access to grade A commercial properties carefully selected with the use of 100s of data points, convenience and offers immediate monthly returns. These platforms have reduced the investment barrier to real estate investing, and investors are looking into this as an efficient strategy to diversify their portfolios. Although the idea of fractional ownership in real estate is still in its adolescence. The sharing economy has made it possible for people to come together and use their resources for the benefit of all. The collaborative and transparent mindset of the sharing economy has been well received by customers and service providers alike. It works on the principles of transparency and trust, and the examples of Uber, Lyft, and Airbnb prove its effectiveness. Fractional ownership is a fairly new concept in the sharing economy, and it is a promising way of investing in real estate. It is evident that a young company MYRE Capital has over INR 275 Crores+ worth of assets under management within 2 years of inception and is poised to reach a milestone of INR 1000 Cr in the coming year itself. As people continue to explore new ways of sharing resources and investing, the sharing economy and platforms for fractional ownership are likely to become even more popular in the future. To sum up, the sharing economy has fundamentally changed how we work, live, and invest. In the sharing economy, fractional ownership is a promising idea that can give investors the comfort and knowledge they need to make real estate investments. We may anticipate that as the market develops, more and more people would look into the advantages of fractional ownership as well as other formats available under the concept of sharing economy.
Tags : Fractional Ownership Investment Aryaman Vir Founder & CEO MYRE