How Millennials Can Own a Slice of Real Estate from Just ₹5,000
With property prices skyrocketing in major Indian cities, millennials are turning to fractional real estate investing to gain exposure to real estate without shelling out lakhs. This innovative investment method allows individuals to own a fraction of commercial or residential property for as little as ₹5,000.
What is Fractional Real Estate Investing?
Fractional real estate investing involves multiple investors pooling their funds to collectively own a property. Each investor owns a percentage based on their investment and receives rental income and appreciation proportionately.
Top Platforms in India
Several platforms are making it easy for young investors to enter the market. Here's how the major players compare:
| Platform | Minimum Investment | Expected Returns | Asset Type | Fees |
|---|---|---|---|---|
| Strata | ₹25,000 | 7–9% annual yield | Grade-A Commercial | 1.5% Management Fee |
| PropertyShare | ₹10,000 | 8–10% annual yield | Office & Warehousing | 2% Platform Fee |
| hBits | ₹5,000 | 6–8% annual yield | Commercial | 1% Exit Fee |
Why It Appeals to Millennials
- Low entry point (as low as ₹5,000)
- Asset-backed investment with potential rental income
- Passive income source without active property management
- Exposure to real estate market diversification
Risks and Considerations
Like any investment, fractional real estate carries risks:
- Lack of liquidity — exits can take time
- Market fluctuation in property prices
- Platform risks and regulatory clarity
Tax Implications
Rental income is taxed as per your income tax slab. Capital gains upon sale are taxed at 10% (LTCG) or 15% (STCG) depending on the holding period.
Sample Strategy for Beginners
| Investment Type | Amount | Goal |
|---|---|---|
| Fractional Property | ₹20,000 | Rental Income |
| Mutual Fund SIP | ₹10,000 | Liquidity |
| Digital Gold | ₹5,000 | Hedge |
Conclusion
Fractional real estate is an ideal gateway for millennials looking to diversify their investments and build passive income. With platforms simplifying access, it's now possible to step into the real estate world even on a tight budget.
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