Pune-based fractional ownership platform (FoP) RealX on July 13 announced that it had assisted investors close a 3,500 sq yard land deal in Ayodhya for ₹10.40 crore.
RealX said it had closed its Ayodhya commercial land parcel of 31,646 sq ft (3516.22 sq yards) at a value of ₹10.40 crore. The company said it saw participation from 57 investors who invested between ₹50,000 to ₹25 lakh to acquire proportionate ownership rights in the property.
This deal signifies a step forward in making high-value real estate accessible to a broader audience through fractional ownership and property tokenization. Fundbezzie assisted RealX as a strategic partner in the deal, the company said in a statement.
“Ayodhya is one of the top appreciating property markets today. With support from central and state governments, the town is poised for rapid growth. Securing a prime property was challenging due to the sellers’ market, but it was a perfect case for fractional ownership,” said Manish Kumar, Cofounder and CEO of RealX.
“We accepted the challenge and completed the transaction within the expected timeline, even subscribing to a portion ourselves to meet the commitment. Now, post-registration, our contribution is also available for sale on the platform, boosting overall confidence in the system,” Kumar added.
The company said that the fractional ownership market of real estate in India is evolving rapidly, with the market expected to touch ₹4,500 billion by 2026.
Also Read: Ram Mandir: Is it the right time to invest in real estate in Ayodhya?
Ayodhya and fractional ownership model
Fractional ownership is the shared owning of an asset among a group of people. Each owner holds a part of the asset and typically shares the benefits and responsibilities that come with it. This includes any increases in the value of an asset.
Prudhvi Reddy, founder and chief executive officer, Assetmonk, had earlier told HT Digital that as tourism increases in Ayodhya, demand for fractional ownership will also increase.
The model will be to do with a property being owned by six to eight co-owners who may appoint a manager to run the rental facility with the rental income being divided equally among them, Reddy had said.
Also Read: Small and medium REITs: Fractional ownership platforms start the process of registering under Sebi’s new SM REIT rules
Several fractional ownership platforms have started the process of registering under SM REIT regulations within months of SEBI notifying the rules to govern small and medium real estate investment trusts (SM REITs) of income-generating and completed properties including commercial assets and rental housing.
Also Read: 520 lakh sq ft SM REIT-ready office space provides monetization opportunity of ₹67,000 to 71,000 crore: ICRA
SEBI had announced earlier that it will regulate fractional ownership platforms (FOPs) offering real estate assets through small and medium REITs (SM REIT). Registration of existing FOPs and new ones is mandatory under SEBI. FOPs allow investors to participate in real estate ownership with fractional shares and minimum investment ranging from Rs. 10-25 lakh.
Around 520 lakh square feet of office space is eligible for small and medium REITs (SM-REIT) listing, creating a monetization opportunity of ₹67,000 to ₹71,000 crore. Of this 3% is that of Grade A supply and 20% of grade B supply, indicating a healthy potential for SM REIT listings in the commercial office space, an analysis by ICRA had said.
Also Read: Fractional ownership market in India predicted to grow over 10x to surpass $5 billion by 2030: JLL-PropShare analysis
The Indian fractional ownership market is currently estimated at around $500 million and is expected to grow 10 times in the next five years to surpass $5 billion of Asset Under Management (AUM) by 2030, according to an analysis by JLL and Propshare.
