Thanks to platforms like Frxnl, real estate has emerged as a promising investment option in India, particularly for retail investors (read fractional). Incorporated in 2021 by Amit Uppal and Rahul Raj Gogna, the startup allows investors to invest small sums without excessive paperwork.
In India, fractional ownership is quickly becoming a new investor favourite, particularly for costly investments such as real estate.
Frxnl enables investors to make fractional investments in otherwise prohibitively expensive real estate projects. Traditionally, investment in high-yield real estate was restricted to institutional banks, asset management companies, and ultra-high net worth individuals — but Frxnl makes it more affordable for middle-class retail investors to invest in real estate by offering opportunities beginning at Rs 10 lakh.
Through the use of digital governance tools, investors can monitor and evaluate their investments continuously.
Nearly 80% of the wealth in Indian households derived from real estate, and its reliability is unparalleled. Most Indians who buy property for investment purposes, on the other hand, take the ‘buy-and-hold’ approach.
At the moment, the startup offers pre-screened investment opportunities in commercial real estate, such as offices, warehouses, and retail spaces. Over a five-to-eight-year period, it estimates that listings on its platform can yield returns ranging between 13 and 20%.
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India currently has a $5 billion fractional real estate market and expected to grow significantly. Besides India, the US expected to enjoy great success with this product.