Ever flipped through a glossy magazine and come across the photograph of a well-heeled, sharp-suited, suave CEO alongside a private jet, yacht or even a luxury holiday home? Your first thought is – ‘Wow, he must be loaded to afford that 8-bedroom, sea-facing villa!’ You’re right — he is wealthy. But that doesn’t necessarily mean he owns the entire villa or paid for it himself. What it could be is a case of him owning only a fraction of the villa. Yes, you heard right! We’re talking about High-Net-Worth Individuals opting for fractional ownership in real estate. Now that we have your attention — let’s dive in.
This trend is known as luxury fractional real estate investing — a shift that is steadily transforming the real estate investment landscape. Over the years, the luxury market has embraced co-ownership models that allow investors to enter premium property markets by splitting the cost into manageable shares.
Often known as co-ownership, fractional investing enables multiple investors to benefit from appreciation in property value as well as rental income. This innovative model is redefining how HNIs access luxury real estate — from vacation villas and beachfront homes to high-end urban residences.
A significant portion of investments within this model flows into residential and commercial properties through fractional ownership platforms. These platforms provide high-net-worth investors a more economical route into premium real estate traditionally dominated by ultra-wealthy buyers. The model also addresses challenges associated with sole ownership — such as high capital requirements, complex paperwork, operational issues, and lack of transparency. Professional management, maintenance, and structured oversight further enhance the appeal.
And the charm lies in the personalization. From stocking chilled beverages to choosing signature room fragrances — everything can be curated. This level of exclusivity has become a major draw for HNIs. According to data from Knight Frank , the fractional ownership market in India — growing at an annualized 10.5% — is projected to expand 65%, rising from $5.4 billion in 2020 to $8.9 billion in 2025.
Although assets range from commercial property to farmland and luxury retreats, the second-home market is witnessing the strongest traction. Popular destinations like Alibaug, Lonavala, Goa, Kodagu, Rishikesh and Shimla are seeing significant HNI inflows.
Recently, the 2024 edition of the Neo-Realty Survey by WiseX , India’s leading neo-realty investment platform, revealed that 60% of overall respondents (6,578 participants) and 64% of HNIs prefer the fractional ownership model when investing in Commercial Real Estate (CRE) in India.
The survey also showed that most investors prefer real estate investments with a medium-term outlook of 1–3 years (20%) and 4–6 years (55%). Bengaluru was the top preferred location at 31%, followed by Pune (24%), Mumbai and Delhi NCR.
Industry estimates suggest that amendments in REIT regulations — especially the inclusion of SM REITs — have significantly boosted investor confidence. The survey further reveals that 60% of affluent investors who previously hadn’t explored fractional ownership now believe SEBI’s regulatory support has strengthened the credibility and transparency of the model.
In summary, fractional ownership in commercial real estate represents a refined and future-ready investment strategy for High-Net-Worth Individuals. With reduced entry barriers, strong diversification benefits, enhanced liquidity, and fully managed assets — the model aligns seamlessly with modern wealth management expectations. The next time you flip through a magazine and spot that luxurious villa or beachfront escape — chances are it’s a fractional asset powering someone’s portfolio.
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Avanne Dubash, Consultant Anchor at ET NOW, holds over 15+ years of experience as a Prime Time Business News Anchor. She has hosted leading events like The India Economic Conclave and interviewed top business leaders on ‘The Market & First Trades’ and ‘Startup Central,’ delivering deep insights across the financial ecosystem.
