1 min read.Updated: 23 Aug 2021, 01:23 PM ISTLivemint
Bengaluru got the highest investors interest in fractional ownership at 27%, followed by 21% interested in Pune’s real estate
Chartered accountants and lawyers show the maximum interest in investments towards fractional ownership of commercial real estate, according to a survey by MYRE Capital, a neo-realty tech-enabled fractional ownership platform.
Around 30% CAs/finance executives were interested in investing in commercial real estate, followed by lawyers at 21%, doctors (15%), IT professionals (13%), entrepreneurs (11%) and business owners (7%).
“These investors prefer fixed income options that are collateralized with a hard asset and have started appreciating the favorable risk-return profile of fractional commercial real estate and the end-to-end management provided by fractional ownership platforms," MYRE Capital said in a report titled ‘MYRE NEO-Realty Survey’.
MYRE Capital conducted a nationwide survey collecting responses from over 1,500 high-ticket investors.
According to the survey, 68% of interested investors in commercial real estate were within the age group of 36-60 years. Around 15% of the interested investors were 25-35 years while the remaining 17% were above 60 years.
Though investors belonging to 60 years and above have traditionally been averse to alternative investments, the trend is changing, said MYRE Capital.
In India, fractional ownership platforms are making it viable for retail investors to participate in institutional-grade rent-yielding properties from a minimum investment size of ₹25 lakh.
“Fractional investment has long existed in India but in an unorganized manner. Even now, investors limit themselves to residential real estate as their only choice of investment. The most common challenges like large ticket size, operational tasks, lengthy and complicated documentation, lack of expertise and trust is being solved by our platform to make this a more inclusive and accessible asset class," said Aryaman Vir, founder and CEO, MYRE Capital.
From the total set of individuals that were surveyed, around 41% were female investors.
The survey also showed that Bengaluru got the highest investors interest in fractional ownership at 27%, followed by 21% interested in Pune’s real estate.
India was also seen as an emerging market for investments by the non-resident Indian (NRI) community with almost a third of the respondents from countries such as the US, the UAE, the UK, Denmark, Nigeria and Australia, among others.
MYRE Capital was launched in January 2021 and has aggregated three Grade-A real estate properties with assets under management (AUM) of ₹70 crore.