A Slice of Indulgence

THE FRACTIONAL OWNERSHIP MODEL FOR LUXURY ASSETS IS BOOMING IN INDIA AS HNIS INCREASINGLY SEEK A HASSLE-FREE PREMIUM EXPERIENCE

- ARNAB DUTTA

WITH THE RAPID rise in mobility and leisure travel post-pandemic, India’s fractional ownership market is increasingly becoming mainstream. And while fractional ownership has been a sizeable market in economies like the US, the UK, and China—all boasting of large pools of the global rich—the market in India was niche till recently. That, however, is changing fast.

In recent years, the domestic luxury market has witnessed a shift with the emergence of fractional ownership—that allows individuals to invest in expensive assets, such as real estate, private jets, yachts, etc., by dividing their ownership cost into more affordable shares. Also known as co-ownership, it allows multiple investors to benefit from their share in any appreciation in market value and rental revenue of an asset.

A significant portion of investments in this model is flowing into the residential and commercial real estate market by way of fractional ownership platforms. Such ventures provide the average high-networth investor a relatively economical entry into assets that are otherwise dominated by wealthier counterparts. The hassle-free model is helping owners overcome the constraints of sole ownership—that is bogged down by large investments, complicated paperwork, a lack of transparency, and management concerns. Besides, fractionally owned properties often have professionally managed finances, maintenance, and legalities. These perks are further driving the trend by providing a hands-off investment experience to owners.