Unlocking the Potential of Fractional Ownership in Real Estate: A Simple Guide to Smarter Investments

Ever wondered how to get into commercial real estate without having to spend crores of rupees? Fractional ownership might just be the key you’re looking for. It’s an innovative way to invest in Grade A commercial spaces and enjoy steady rental income, even if you’re not a real estate mogul. Today, I'll break down this concept for you, using a real-world example from hBits—a platform that’s revolutionizing commercial real estate investment in India.

What Is Fractional Ownership?

Think of fractional ownership like owning a slice of a pie. Instead of buying an entire commercial property (which could cost several crores), you can invest a smaller amount—say, INR 30 lakhs—and own a share of the property. You’ll still enjoy the benefits, like rental income and potential capital appreciation, but at a much more accessible price point.

For instance, hBits recently launched a Grade A investment opportunity in Ashar IT Park, Thane, offering retail investors a chance to own a part of a property leased to a French-listed multinational company. Sounds intriguing, right? Let’s see how you can make this work for you.

Why Fractional Ownership Makes Sense

1. Lower Entry Barrier

Unlike traditional real estate investments, where you need crores to start, platforms like hBits allow investments starting at INR 30 lakhs. This makes commercial real estate accessible to a wider audience.

2. Steady Rental Income

Grade A commercial spaces often attract blue-chip tenants, ensuring consistent rental yields. For example, hBits' Thane property offers an entry yield of 8.75% and an expected IRR of 15.16%.

3. Diversification

Fractional ownership lets you spread your investment across multiple properties, reducing risk. Imagine owning parts of properties leased to companies like Raymond or Cipla, as seen in Thane’s Wagle Estate.

Key Features of hBits’ New Investment Opportunity

To give you a better idea, let’s break down what hBits is offering:

• Location: Ashar IT Park, Thane—a hub with excellent connectivity via the Eastern Express Highway and the upcoming Wagle Circle Metro Station.

• Tenant Profile: Leased to a multinational leader in customer experience management, with other tenants in the area including Cipla and DHL.

• Financial Model: Projects an IRR of 15.16% over five years, with a return multiple of 1.81x.

  
  

How to Get Started with Fractional Ownership

1. Understand the Model

Platforms like hBits provide detailed projections, including rental yields, IRR, and holding periods. Review these carefully to understand your potential returns.

2. Choose the Right Property

Look for Grade A properties in premium locations. For example, Thane’s commercial market offers competitive rentals and strong growth prospects, making it an attractive choice.

3. Evaluate the Platform

hBits, founded in 2018, has built a solid reputation with over 1,00,000 registered users and a successful exit record yielding an IRR of 17.54%. Such credibility is essential when choosing where to invest.

4. Start Small, Scale Gradually

Begin with a modest investment and reinvest your earnings to grow your portfolio. Fractional ownership is all about long-term growth.

The Bigger Picture: Why Now?

With Mumbai accounting for 44% of space occupied by domestic financial organizations and annual office rental growth of 4-8%, the demand for Grade A commercial spaces is soaring. By investing now, you’re positioning yourself to benefit from this upward trend.

Conclusion

Investing in commercial real estate through fractional ownership is like planting a tree. It starts small, but with time and the right care, it can grow into something significant. Platforms like hBits are making this process simpler and more accessible, offering opportunities that align with India’s growing appetite for high-quality commercial spaces.

As Shiv Parekh, Founder & CEO of hBits, puts it: “Our strategy of acquiring properties in premium locations offers lucrative investment opportunities to investors.”

So, why wait? Take the first step towards smarter investments and let your money work for you.

“Don’t wait to buy real estate. Buy real estate and wait.” – Will Rogers