From dream to reality: Fractional real estate emerges go-to strategy for investors with Rs 50 lakh budget

Economic Times

5 days ago

For generations, buying property has been the cornerstone of wealth creation in India. A piece of land or a home was not just an investment but a symbol of security, stability, and financial success.
ADVERTISEMENT But in recent years, with the rise of fractional real estate platforms, investors—especially those with limited capital—are rethinking how they allocate money to real estate.
The question is especially relevant for those with a Rs 50 lakh investment budget. Is it better to go the traditional route and buy a residential unit, or should one explore the growing world of fractional ownership in commercial real estate?
We asked two leading voices in the industry — Manisheel Gautam, Chief Marketing Officer at Alt DRX, and Aditi Watve, President – Investment Sales & REIT Advisory at ANAROCK Group — to break it down.Before choosing between traditional and fractional real estate, it's important to identify the purpose of the investment. Is it for personal use or purely to build wealth?
ADVERTISEMENT 'Buying real estate is objective-dependent,' says Manisheel Gautam of Alt DRX. 'If your goal is end-use—say, you want to live in the property—then a traditional purchase makes sense. But if your objective is investment and wealth creation, digital real estate becomes a strong diversification tool.'Gautam points out that fractional investing allows people to spread their ₹50 lakh across multiple assets, thereby reducing risk and increasing exposure to income-generating properties—something that's difficult to achieve with a single traditional property.
ADVERTISEMENT At first glance, Rs 50 lakh might seem sufficient to buy a property. And it is—but with limitations.According to Aditi Watve of ANAROCK, investors can consider traditional real estate if they're willing to look at smaller units or properties in Tier 2 or Tier 3 cities.
ADVERTISEMENT 'With such a budget, one can certainly invest in real estate directly—especially in smaller towns. Many Indians also take home loans to afford bigger properties, which come with some tax advantages,' she explains. 'However, loans are long-term financial commitments, and often dilute the investment logic when you're purely looking to grow wealth.'Watve argues that while residential real estate carries emotional value, it is no longer the most rewarding asset class in terms of returns. Commercial properties are more lucrative, but typically come with a much higher price tag, putting them out of reach for investors with smaller budgets—unless they go fractional.
ADVERTISEMENT Fractional real estate allows investors to own a share in premium, income-generating commercial properties, such as office buildings or warehouses, for below Rs 10 lakh.'With fractional real estate, one can invest in a premium commercial asset for as low as INR 5-10 lakhs. These assets come with professional management and generate passive income—without the hassles of ownership,' Watve says.'Seen purely from an investment perspective and minus the sentimental attachments that buying housing in India typically involves, fractional real estate can be a superior option in this budget,' she added.This modern approach is catching on with both domestic and NRI investors, who see it as a way to get quality exposure to India's real estate boom without large capital outlays or management headaches.'Retail investors in India and NRIs are both participating in the boom,' says Gautam. 'NRIs, in particular, have traditionally seen Indian real estate as a safe haven. In the current global environment, it's a way to build hard assets in a high-growth economy.'The profile of investors putting money into fractional real estate is evolving. According to ANAROCK's Watve, it's no longer just seasoned HNIs.'Today's buyers include HNIs, tech-savvy millennials, and NRIs who want access to properties in key investment hubs like MMR, Bengaluru, NCR, Hyderabad, and Pune,' she says. 'They like fractional ownership because it gives them access to premium properties, with the convenience of digital platforms that handle due diligence, selection, and property management.'Platforms are also making it easier for investors to track performance, receive regular income, and exit when needed—features that were traditionally hard to access in India's real estate market.Real estate remains one of the most trusted asset classes in India—but how one invests in it is rapidly evolving.With a Rs 50 lakh budget, experts agree that fractional ownership offers greater flexibility, diversification, and access to high-quality assets than traditional investing in residential properties.If your goal is long-term wealth creation—and not living in the property—fractional investing may well be the smarter, more modern path forward.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)