Fractional ownership is for deep-pocketed investors, say analysts

Most retail investors will be better off opting for a REIT

Investors who have bet their money on residential real estate are a disappointed lot today. The rental yield of 2-3 per cent fails to combat inflation and capital appreciation has been poor over the past six-seven years. Meanwhile, large private-equity players have been acquiring the commercial real estate portfolios of Indian developers, a pointer to their bullishness on this asset class. If you, too, have wanted exposure to a grade A commercial property, you can do so now by investing through a fractional ownership platform.    

How does it work?

The platform offering fractional ownership does the due diligence and