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Friday, December 20, 2024 | 11:48 AM ISTEN Hindi

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Fractional platforms lower barrier for investing in commercial realty

It is a relatively new avenue though and carries high concentration risk

Embassy is in the final lap of merging with Indiabulls Real Estate to create a large combined entity which will spearhead its residential ventures in the country.
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These platforms enable investors to own a portion of a grade A office property, usually situated in a prime location.

Sanjay Kumar Singh
With corporates asking their employees to return to office, or work at least partly out of office, occupancy levels are rising. This bodes well for commercial real estate (CRE). According to ANAROCK Research, net absorption of office space was 34.06 million square feet (sq. ft.) in FY2021-22 across India’s top seven cities, up 60 per cent over FY2020-21, and at almost 80 per cent of the pre-Covid-19 level of 43 million sq. ft. in FY2019-20. Besides real estate investment trusts (REITs), an upcoming route that retail investors can take to participate in CRE is fractional platforms.

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