The future of commercial real estate investment, says YieldAsset

Bangalore, India, February 20, 2021 / PRNewswire / – Fractional Investment, a new trend that has caught on in the real estate industry, is a new, safer, and workable way to make pocket-friendly investments in office real estate.

Indians have long invested their savings in gold and real estate. You can only agree more Theodore Roosevelt: “Anyone who invests in selected real estate in a growing part of a prosperous community is using the safest and most secure method to become independent, because real estate is the basis for prosperity.” However, real estate investments for many urban households are now limited to small lots or apartments. Investments in residential housing have not performed well compared to investments in class A office buildings due to lower rents compared to commercial assets.

The Indian Grade A office property remained a preferred asset class for investors – even with the introduction of Work From Home due to the solid fundamentals and resilience of its wealth. This segment has attracted investments in the amount of $ 15.4 billion in the past decade. Embassy Office Parks and Mindspace REIT also carried out two successful REIT listings on the Indian market Rs 9.250 cr. Recently, in the midst of the pandemic, Blackstone and Brookfield announced two of the biggest deals in the Indian real estate market, valued at around 1 Rs 25,000 cr, acquisition of office parks from Prestige and RMZ. Fractional investment, a new trend that has caught on in the real estate industry, is a new, safer, and more workable way to make pocket-friendly investments in office properties. Several investors are pooling their money to jointly buy class A office properties. The assets are legally vetted and rigorous legal and regulatory approval reviews are carried out before they are offered for ownership to these individual investors. It works perfectly for the pocket of investors and is expected to be a dominant investment trend in the market for the next three to four years India. In advanced markets like the USA Singapore and Hong Kongthe concept has already seen significant traction.

The investors receive rental income in proportion to the investments made in the property. The capital growth achieved at the time of sale is also divided proportionally among the investors. The merit of the shareholding is not limited to owning a commercial real estate property with institutional quality, but also to:

• Achieve regular rental income that is usually 2-3 times higher than renting residential units.
• Plant security in view of the Grade A quality of the underlying.
• Improved liquidity, as these units can be sold on the resale platform at any time and thus provide liquidity.
• When capital gains are invested over time, they add an unrivaled multiplier effect to the overall return.

Owning Class A commercial real estate consisting of offices, warehouses, factories, etc., requires a significant amount of capital, typically several billion rupees! Therefore, it was the privilege of wealthy individuals, family offices and institutes. Fractional ownership in high quality commercial asset classes provides a great solution for someone looking for a pocket-friendly investment away from the volatility of the stock markets and low interest rates on time deposits. Hence, fractional ownership offers a whole new asset class to Indian households who can own commercial property on budget. The broken property concept is destroying the HNIs monopoly on commercial real estate investments.

By Riaz Maniyar, Co-Founder of YieldAsset Real Estate Tech Pvt Ltd, a new proptech startup that enables a fraction of the ownership of commercial real estate with institutional quality

https://www.yieldasset.com/

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Media contact: Riaz Maniyar, [email protected] , +919886562109, Co-Founder of YieldAsset Real Estate Tech Pvt Ltd.

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SOURCE YieldAsset Real Estate Tech Pvt Ltd.