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The Reserve Bank of India’s (RBI) latest Monetary Policy Committee (MPC) decision to cut the repo rate by 25 basis points (bps) to 6.25% marks a significant shift in the economic landscape. This move aims to stimulate economic growth while maintaining inflation within manageable limits. With inflation projected to moderate at 4.2% in FY26 and GDP growth estimated at 6.7%, the rate cut provides a favourable environment for investments. But how does this translate into tangible opportunities for investors?&nbsp;&nbsp;<h2 style="margin-left:0cm;">Impact of RBI’s Policy on Investment Strategies</h2>Traditionally, interest rate cuts lead to lower returns on fixed-income investments such as fixed deposits (FDs), bonds, and debt mutual funds. For investors relying on these instruments for stable returns, the declining interest rate regime may pose a challenge.&nbsp;At the same time, real estate and equity markets often respond positively to such monetary easing. With borrowing costs reducing, liquidity in the market improves, fuelling capital inflows into asset-backed investments such as commercial real estate.&nbsp;&nbsp;<h2 style="margin-left:0cm;">Why Fractional Ownership in Commercial Real Estate is a Winning Bet</h2>In this evolving economic climate, fractional ownership in commercial real estate emerges as an attractive investment avenue, providing investors with&nbsp;8.71%+ annual yields&nbsp;alongside potential capital appreciation. Unlike traditional real estate investments, which require significant capital, fractional ownership allows investors to own a share in Grade-A commercial properties leased to blue-chip tenants, ensuring steady rental income.&nbsp;&nbsp;<h2 style="margin-left:0cm;">Comparing Investment Returns: Fixed Income vs. Fractional Ownership</h2>&nbsp;<figure class="table"><table style="background-color:rgb(255, 255, 255);"><tbody><tr><td style="padding:0.75pt;">Investment Type</td><td style="padding:0.75pt;">Expected Returns (Post Rate Cut)</td></tr><tr><td style="padding:0.75pt;">Fixed Deposits (FDs)</td><td style="padding:0.75pt;">6.0% – 6.5%</td></tr><tr><td style="padding:0.75pt;">Government Bonds</td><td style="padding:0.75pt;">6.2% – 7.0%</td></tr><tr><td style="padding:0.75pt;">Corporate Bonds</td><td style="padding:0.75pt;">7.5% – 8.0%</td></tr><tr><td style="padding:0.75pt;">Fractional Ownership (Commercial Real Estate)</td><td style="padding:0.75pt;">8.71%+ Yields + Capital Appreciation</td></tr></tbody></table></figure>&nbsp;As evident, fixed-income instruments now yield lower returns, barely outpacing inflation. Meanwhile, commercial real estate investments provide inflation-hedged returns with stable long-term gains.&nbsp;&nbsp;<h2 style="margin-left:0cm;">The Power of Commercial Real Estate: Stability &amp; Growth</h2>1. Passive Income with Higher YieldsCommercial properties leased to reputed tenants generate consistent rental income, ensuring predictable cash flow. Compared to volatile equity markets and declining FD rates, commercial real estate offers a safer, high-yield alternative.&nbsp;2. Capital Appreciation PotentialWhile FDs and bonds provide static returns, commercial real estate appreciates over time, providing dual benefits—rental yield and capital appreciation.&nbsp;3. Hedge Against InflationWith inflation projected at 4.2% in FY26, traditional savings instruments may struggle to maintain real returns. Commercial real estate rents are inflation-linked, ensuring real wealth preservation.&nbsp;4. Accessibility Through Fractional OwnershipThrough platforms like&nbsp;hBits, investors can participate in premium-grade commercial real estate with significantly lower capital requirements, democratizing access to this asset class.&nbsp;&nbsp;<h2 style="margin-left:0cm;">The Road Ahead: Investing Smartly Amidst Policy Changes</h2>RBI’s neutral stance suggests that while economic recovery is underway, uncertainty remains due to global market volatility, geopolitical tensions, and commodity price fluctuations. In such conditions,&nbsp;diversification is key—investors should look beyond traditional fixed-income assets and consider stable, high-yielding investments like fractional ownership in commercial real estate.<h2 style="margin-left:0cm;">&nbsp;</h2><h2 style="margin-left:0cm;">&nbsp;</h2><h2 style="margin-left:0cm;">Take Action: Secure Your Investment in Commercial Real Estate</h2>With RBI’s rate cut reducing fixed-income yields, now is the ideal time to explore alternative investments.&nbsp;Invest in high-yield commercial real estate today with&nbsp;hBits&nbsp;and unlock steady passive income with capital appreciation potential.&nbsp;<img class="image_resized" style="width:1.2em;" src="https://fonts.gstatic.com/s/e/notoemoji/16.0/1f4e2/32.png" alt="📢" loading="lazy"> Start investing today! Visit&nbsp;<a href="https://www.hbits.co/">hBits</a>&nbsp;to explore premium fractional ownership opportunities and secure your financial future.Don’t let your money stagnate—grow your wealth with stable and lucrative real estate investments!

The Reserve Bank of India’s (RBI) latest Monetary Policy Committee (MPC) decision to cut the repo rate by 25 basis points (bps) to 6.25% marks a significant shift in the economic landscape.

RBI's Rate Cut: A Boost for Investors & Why Fractional Ownership in Commercial Real Estate Stands Out

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Investing in commercial real estate has long been a privilege reserved for institutional investors and high-net-worth individuals due to the substantial capital requirements involved. However, the emergence of&nbsp;fractional ownership in real estate is democratizing access to this lucrative asset class, allowing retail investors to participate in high-value commercial properties by owning a fraction of the asset. This innovative investment model offers an opportunity to diversify portfolios and potentially achieve stable returns. But how secure and limited in risk is&nbsp;fractional investment in commercial real estate India from an investor's perspective? &nbsp;<h2>Understanding Fractional Ownership in Commercial Real Estate</h2>Fractional ownership involves multiple investors pooling their resources to collectively purchase a commercial property. Each investor owns a fraction of the property proportional to their investment and shares in the income generated, such as rental income, as well as any appreciation in property value. This model lowers the entry barrier, enabling investors with limited capital to access premium commercial real estate opportunities through a&nbsp;fractional property investment platform. &nbsp;<h2>Why Is Fractional Ownership Gaining Popularity?</h2>With increasing awareness of wealth-building opportunities in real estate, more investors are looking at&nbsp;fractional ownership in real estate as a viable alternative to traditional investment methods. Platforms offering&nbsp;fractional investment in commercial real estate India allow individuals to invest in pre-leased, high-yield properties, ensuring a steady income stream without the complexities of sole ownership. &nbsp;<h2>Security and Risk Mitigation in Fractional Ownership</h2>1. DiversificationBy investing in&nbsp;fractional ownership in real estate, investors can diversify their portfolios across multiple properties and locations without the need for substantial capital. This diversification helps mitigate risk, as the performance of one property may offset the underperformance of another.&nbsp;2. Professional ManagementTop fractional ownership platforms in India typically employ professional property management teams to handle the day-to-day operations, maintenance and tenant relations. This professional oversight ensures that the property is managed efficiently, potentially enhancing its value and income-generating capabilities.&nbsp;3. Regulatory OversightIn India, the Securities and Exchange Board of India (SEBI) has introduced regulations for Small and Medium Real Estate Investment Trusts (SM REITs) to oversee the&nbsp;fractional property investment platform segment. This regulatory framework aims to instill confidence among investors by promoting transparency and protecting investor interests. &nbsp;<h2>Industry Insights and Data Points</h2>The&nbsp;fractional property investment platform model is gaining traction in India's commercial real estate sector. According to an industry report, the Indian office market demonstrated remarkable resilience, nearly equaling its peak performance in 2019. This surge is closely tied to the rising popularity of co-working spaces and&nbsp;fractional ownership in real estate. The report also highlights that&nbsp;fractional investment in commercial real estate India is transforming investment opportunities by making high-value properties more accessible to retail investors.Additionally, data from industry experts suggest that premium office spaces in metro cities offer rental yields of 8–10%, making them an attractive asset class for those investing through&nbsp;top fractional ownership platforms in India. &nbsp;<h2>Conclusion</h2>Fractional ownership in real estate presents a compelling avenue for investors seeking to diversify their portfolios with potentially stable and attractive returns. While it offers enhanced accessibility, professional management and regulatory oversight, investors should remain cognizant of the associated risks, including liquidity constraints and market volatility. Conducting thorough due diligence, understanding the terms of the investment and aligning with reputable&nbsp;top fractional ownership platforms in India are crucial steps to ensure a secure and rewarding investment experience.

Investing in commercial real estate has long been a privilege reserved for institutional investors and high-net-worth individuals due to the substantial capital requirements involved

The Smart Investor’s Guide to Secure and Stable Returns with Fractional Ownership

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Examine the best approaches for buying commercial real estate in India. Acquire profitable investments in a growing market from fractional ownership to REITs.

Why Should You Invest in Indian Commercial Real Estate Now?

Discover the best ways to buy in real estate in India with hBits. Get access to expert guidance & comprehensive resources for a successful investment journey.

Best Ways To Buy Real Estate In India In 2023

Discover the best ways to buy in real estate in India with hBits. Get access to expert guidance &amp; comprehensive resources for a successful investment journey.

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Best Ways To Buy Real Estate In India

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Important things to think about before making an investment in a pre-leased commercial property. Assure consistent capital growth and rental revenue.

6 Factors to Consider When Investing in A Commercial Real Estate

Learn the factors for investing in a commercial property. Read on to make commercial real estate investment or pre leased commercial property investment.

6 Factors To Look While Investing In A Commercial Property In 2023

Learn the top factors to consider when investing in a commercial property. Read on to make smart commercial real estate investment or pre leased commercial property investment.

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6 Factors To Look While Investing In A Commercial Property

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<h2>Fractional Real Estate – Tailor-made for the millennial investor!</h2>‘Millennial’ is a term used to describe people who were born in the last two decades of the 20th century. Millennials are in their early twenties to early forties today. This means that they will be professionally active for at least two decades before they hang up their boots.&nbsp;In case of money, compounding is the eighth wonder of the world as they say. It means that if you invest in assets that yield consistent returns over a period, you will create wealth. The trick is to identify an asset that can tilt the risk-reward ratio in your favor. That is, the asset should be less risky so that your initial investment is preserved and it yields a good return over and above what ‘fixed income’ instruments can offer so that you can compound your money in the future.&nbsp;<h2>Fractional Ownerships of Commercial Real Estate</h2>While the young people and the millennial audience are aware of asset classes such as Equities, Mutual Funds investing in equities and debt, fixed-income assets, and even cryptocurrencies and NFTs, they may not have focused on Fractional Ownership.&nbsp;In layman's terms, Fractional Ownership (FO) is the distribution of the ownership of a very expensive and high-value asset that yields consistent return and provides capital appreciation over time. FO in commercial real estate enables young people to invest a sum of money and own fractions of a grade-A commercial real estate. Their ownership corresponds to the amount they invest. The ownership comes in ticket sizes of INR 25 Lakhs or so, and for every such ticket that you invest in, you start owning a portion or ‘fraction’ of the real-estate asset. In the post-pandemic year, there has been a tectonic shift in the mindset toward investing, especially among young people in India. One can see a lot of participation across equity markets and other so-called non-traditional asset classes.&nbsp;&nbsp;<a href="https://hbits.co/">Fractional Ownership</a> is bringing in young people and millennials into the property market as well. For a generation that prefers an Uber/Ola over owning a car, a rented apartment over buying a house, etc., this is a transformational shift. This generation prefers access over ownership but the trends in FO in grade A commercial real estate indicate a very different trend. &nbsp;&nbsp;Millennials such as Mr. Noaman Naik, working at Deloitte, have taken to FO investments seamlessly. With hBits as a platform, they have had an enriching experience while making such investments largely due to the transparency and ease of investment understanding that such platforms provide. His experience is summarized in the quote below:&nbsp;"I have invested in 2 properties with hBits. The first time the ownership processes were super smooth; my rentals and all related formalities were managed without any glitches, to the extent that the real-time dashboard always kept me updated on the rental returns. The success that I attained gave me the courage to reinvest again because I was sure that it was the best way to balance my portfolio. And why not? The stock markets are volatile...the Fed rate hike is coming...the Russia-Ukraine crisis...these reasons will make the stock market investment even dicier. But with hBits' properties delivering 8%-10% rental yield and 5%-10% appreciation, it makes absolute sense to invest my money with hBits."&nbsp;<h2>What changes for the young investors?</h2>Just like the above quote, FO today is as easy as buying mutual fund units or shares of the companies that you like. The young investor or millennial could be anywhere and seamlessly invested in the FO opportunity. They gain a rental yield of around 8% per annum and a capital appreciation of over 5% even if we consider conservative estimates based on historic data. If you look at a traditional investment such as a fixed deposit, investments like FO yield around 27.37% more return on investment over a five-year period.&nbsp;If you want to know more about the mathematics behind this, please&nbsp;<a href="https://hbits.co/properties">click&nbsp;here</a> and drop an interesting inquiry to us.&nbsp;Moreover, it scores over residential real estate as below:&nbsp;&nbsp;<ul><li>Tenants in such <a href="https://hbits.co/properties">commercial properties</a> are high quality, reputed MNC’s or large companies which come with a lock-in period hence you do not have to scout for tenants.</li></ul>&nbsp;<ul><li>The legal workaround tenancy agreement as well as the collection of rent will be taken care of by the commercial real estate management company or owners of the commercial real estate.</li></ul>&nbsp;<ul><li>The asset will appreciate and the rental yield with such properties is assured as reputed companies are unlikely to default on rent payments.</li></ul>&nbsp;<ul><li>While you own a fraction, you do not have to maintain the corporate premises as it is managed by the real-estate company.</li></ul>&nbsp;While the hassles are away, you get to enjoy a capital appreciation of 5% and a rental yield of around 8%.&nbsp;Can investment in real-estate get any easier and more efficient? Would there be an option that can yield a higher return while relieving you of hassles with respect to the management of the asset? The answer is likely to be ‘No’, and hence fractional ownership is the way to go.&nbsp;&nbsp;Young people or millennials who buy such fractions can check the status of their investments and estimated returns anytime through a secure dashboard provided by hBits. They can sleep easy while their money invested in fractional ownership of commercial real-estate works hard for them. While FO is attracting young people into the market, there is still a long runway for participation, and we will see a lot of <a href="https://hbits.co/fractional-ownership-investment">investments in fractional ownership</a> in the years to come. As the asset class becomes popular and demand increases, the prices of fractions will also rise, and early investors are likely to earn well from such price appreciation in addition to the estimated rental yield that they would be enjoying as a reward for their patience and conviction in an unconventional asset class.&nbsp;Have you invested in Fractional Ownership yet? Learn how and take the first step today.

Fractional real estate is the perfect investment for young investors. Enjoy high returns and low risk and easy investment processes. Learn how to start investing!

A Young Beginner's Guide to Commercial Fractional Real Estate

‘Millennial’ is a term used to describe people who were born in the last two decades of the 20th century. Millennials are in their early twenties to early forties today. This means that they will be professionally active for at least two decades before they hang up their boots.

Young People's Entry via Frac. Real Estate Investment

Young investor? Enter the property market with ease through fractional investing. Learn the ins and outs on the hBits blog. Start exploring now!

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“Stay home, stay safe” should not mean that all real estate investing must necessarily come to a standstill. At a time when staying indoors has become the mantra to protect the population from the threat of Covid-19, online property buying has emerged as the key to sustained ownership of the commercial real estate in the midst of the lockdown. The need for venturing outside is completely eliminated with technology-enabled online dealing as everything you need is literally at your fingertips.&nbsp;<h2>Online Asset Trading</h2>From stocks and bonds to gold and real estate, all asset types can be traded online nowadays. Equities have been bought and sold online for many years, while investors can also trade in government securities through dedicated online apps like NSE goBID. And gone are the days when buyers had to visit a jeweller or a bank to purchase the yellow metal; technology has now made it possible to invest in ‘digital gold’ of guaranteed purity through common digital platforms such as Paytm and PhonePe.&nbsp;Although the physical nature of real estate to online purchase is just a matter of awareness, 100% online purchase are now possible in the commercial real estate space with the aid of specialized and secure platforms. Companies operating these platforms perform all the research and due diligence for you so that you can invest safely from the comfort of your home.&nbsp;Nowadays, all types of assets, from stocks, bonds to gold can be traded online. Buying and selling of Equities online has been in practice for many years. At the same time, investors can also trade in Government Securities through dedicated online apps like NSE goBID. Gone are the days where buyers need to physically visit a jeweller or bank to purchase the yellow metal. Technology has now made it possible to invest in ‘digital gold’ of guaranteed purity through common digital platforms such as Paytm and PhonePe.&nbsp;Real estate too, can be purchased online in the same way now and is just a matter of awareness. 100% online purchase are now possible in the commercial real estate space with the aid of specialized and secured platforms. Companies operating these platforms carry out all the research and due diligence for you to be able to invest safely from the comfort of your home.&nbsp;<h2>Online Property Purchase</h2>Property purchase has traditionally required significant physical effort. Activities such as scouting for a location, checking out the construction quality, assessing design and layout, inspecting the surrounding areas, and verifying documentation, demand considerable time and energy from the buyer. Issues like maintenance and rent collection require the owner to stay in close proximity to the building even after the purchase. But online trading in real estate is gradually reshaping the industry by removing the need for physical proximity and empowering you to take important decisions based on information on your screen.&nbsp;Property purchase traditionally requires significant physical effort. Activities such as scouting for a location, inspecting the construction quality, assessing design and layout, exploring the surrounding areas, and verifying documentation, all demand considerable time and energy from the buyer. Issues like maintenance and rent collection require the owner to stay in close proximity to the building even after the purchase.&nbsp;This is where online trading in real estate is gradually reshaping the industry by eliminating the need for physical proximity and empowering you to take important decisions based on the information on your screen.&nbsp;<h2>Residential Real Estate</h2>Even till a few years ago, purchasing residential real estate meant devoting several days to physically inspecting sundry locations. The advent of the first major online property sites in the mid-2000s made property selection simpler through an online listing of inventory. Each listing was accompanied by important details such as pricing, amenities, pictures, and floor plans to make the process as simple as possible for the home buyer. In a recent article by CNBC TV18 “This real estate company sold 500 homes amid coronavirus crisis;” the author has discussed the usefulness of online property buying and how such a medium can be used to reach potential purchasers even in less-than-ideal scenarios.&nbsp;Many other features have been added to property portals since; including online mapping, virtual 3D tours, video tours, price heat maps, etc. Although end-to-end online transaction is yet to become viable in the residential property sector, online portals have had a game-changing impact on the industry by influencing the way customers search for property.&nbsp;Up until a few years ago, purchasing real estate meant devoting several days to physically inspecting sundry locations. The advent of the first major online property sites in the mid-2000s made selection simpler through an online listing of inventory. Each listing had important details such as pricing, amenities, pictures, and floor plans to make the process as simple as possible. In a recent article by CNBC TV18 “This real estate company sold 500 homes amid coronavirus crisis”; the author has discussed the usefulness of online property buying and how such a medium can be used to reach potential purchasers even in less-than-ideal scenarios&nbsp;Many other features have been added to property portals since; including online mapping, virtual 3D tours, video tours, price heat maps, etc. Although end-to-end online transaction is yet to become viable in the residential property sector, online portals have had a game-changing impact on the industry by influencing the way customers search for property.&nbsp;<h2>Commercial Real Estate</h2>Unlike residential realty, the more formalized nature of the commercial real estate sector in India is well suited to end-to-end online purchase of inventory through the fractional ownership model. This innovative model is chiefly designed to help in the broad basing of commercial real estate ownership which comes with massive price tags that puts them out of the reach of common people. By allowing investors to own a piece of premium <a href="https://hbits.co/properties">Grade A commercial property</a> at a relatively small ticket size, fractional ownership platforms have opened the commercial real estate space to ordinary investors by providing high-quality options at affordable prices.&nbsp;<a href="https://hbits.co/">Fractional ownership platforms</a>&nbsp;not only list various properties on their website but also perform due diligence vis-à-vis each listing. Moreover, they manage the property for you and help find tenants when a vacancy arises. The entire process is completely online, enabling investors to buy property anywhere in the country without the need to venture out. Here’s how it works:&nbsp;<ul><li>Property Selection: The portals display a wide array of options that include details regarding size, pricing, rental yields, appreciation value, etc. The asset value is completely transparent with a detailed break-up of the pricing structure. You can also find information about the location, tenant (in the case of <a href="https://hbits.co/preleased-property">pre-leased properties</a>), images, video walkthroughs, LEED certifications, amenities, name of the developer, and so on. Practically every detail that is relevant to the selection process from the point of view of the investor can be found on your computer screen.</li><li>Due Diligence &amp; Purchase: There’s no need to worry about due diligence as all the properties which are listed are carefully vetted by the company. From bank loan documents to land use permissions, everything is scrutinized by professionals. Once you express your intent, the firm will appoint a transaction specialist to guide you through the process and answer all your queries.</li><li>Maintenance &amp; Earning: The services do not stop with the purchase. The company employs staff for the upkeep and maintenance of each property leaving you relaxed and stress-free. They also takeover rent collection and assist in finding a tenant every time a property falls vacant.</li><li>Selling: Investors can resell the property at any time by simply communicating the same to the company. The company’s transaction specialists will help you re-list the property on the portal and guide you through the redemption process.</li></ul>&nbsp;The transaction process is totally safe with trained specialists handling every aspect of the deal. Due diligence is given utmost importance. Investors too can cross-check key documents using the relevant online forums. Most key documents such as occupancy certificates and building plan approvals are readily available on the websites of the respective municipal authorities.&nbsp;A tenant profile is an excellent yardstick to validate the quality of a shortlisted property. Reputable Indian and multinational companies with a large revenue/net worth and global footprint. Their presence can be reassuring of the intrinsic value of your investment and is one of the best parameters to guide you vis-à-vis your investment.&nbsp;<h2>Reliability is the Key</h2>Online property investment is not only simple and hassle-free but also highly secure. Although every offering is pre-vetted by the company prior to its listing, investors can also carry out independent online research to satisfy themselves about the value of their investment. At the same time, the onus is on the customer to select a reliable platform. Reliable real estate purchasing service providers can help you get the best deals in a totally secure and transparent environment from the safety and protection of your home.

Owning real estate online is easy and secure. Invest in real estate from the comfort of your home with secure platforms, offering convenience that is easily accessible.

Digital Real Estate Buying - Safe & Effortless | hBits

Secure digital property buying made simple! hBits offers quick and easy access to top digital properties. Read on to know more.

Secure & Easy Digital Property Buying, Like Online Shopping

Secure digital property buying made simple! hBits offers quick and easy access to top digital properties. Read on to know more.

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Secure & Easy Digital Property Buying - Like Online Shopping

Most Indian investors saving for long-term goals like saving for the higher education of their children or building a retirement corpus are usually risk averse and seek guaranteed returns. As a result, the Public Provident Fund (PPF) has found a place in the financial portfolio of most Indians, with generations of India pushing their progeny to put aside funds in PPF as soon as they receive their very first salary.&nbsp;Some conscientious investors have even been known to set aside money in a PPF account as soon as a child is born, so as to ensure that the maturity of the PPF coincides with his higher education! Such has been the faith in PPF.&nbsp;<h2 style="margin-left:0px;">Unsuitable for long-term financial goals</h2>The major reason why PPF has enjoyed popularity is because of the minimum investment amount of Rs 500 and tax benefits Section 80 C of the Income Tax Act of India. The biggest advantage though is that it carries a sovereign guarantee. But under the present circumstances, the PPF may not be the ideal solution to meet long-term financial goals. Here’s why.&nbsp;From the year 2011, the PPF rates were made variable and linked to the prevailing rate of interest in the economy. This means that the rate of interest on the PPF is set at the beginning of each financial year. While this is advantageous in a rising interest rate scenario, in a falling interest rate scenario (as in the present case) it has the opposite effect. In fact, the interest rate on PPF has been on a steady decline for the past two decades and currently stands at 7.1% from an all-time high of 12% in 2000.&nbsp;Investors looking to make large investments to meet medium to long-term investment goals, such as the higher education of children in 5-10 years or building a nest egg for retirement in a similar time frame are likely to be stunted by the slow pace of growth in a PPF.&nbsp;Consider this- The interest rate on PPF has been the lowest at 7.1% in the past two decades. Add to that the rate of inflation at 4.5%. This means the PPF investment will only grow at a rate of 2.6%. So hypothetically speaking, if an investor were to invest 1.5 lakhs annually over 15 years the maturity value will be in the range of Rs 31 lakhs over the time frame (taking inflation into consideration). This amount may not be enough for the earlier-mentioned life goals.&nbsp;While PPF may still be best suited for a first-time investor looking for a regular investment option, it has some other drawbacks. For instance, a long lock-in period of 15 years, the inability to make even partial withdrawals for the first six years, and an annual cap of Rs 1.5 lakhs on investment make it unsuitable to meet the needs of middle-income investors. What then is the ideal investment option for middle-income investors who wish to meet long-term financial goals with liquidity and safety? The answer lies in an investment option that has not been accessible to retail investors thus far- Commercial real estate through fractional investment.&nbsp;<h2 style="margin-left:0px;">Why fractional investment?</h2>For superior returns investors, therefore,&nbsp;<a href="https://www.cnbctv18.com/personal-finance/is-fractional-property-a-better-investment-option-than-ppf-9524761.htm">investors may consider fractional investment in commercial real estate</a>. Fractional investment is recently gaining popularity among the middle class looking for stability and a healthy rate of return. What fractional investment in real estate means is that small investors pool their resources to jointly buy a commercial property.&nbsp;Leading fractional ownership platforms such as hBits are providing the benefits of ownership of Grade A pre-leased assets to retail investors to whom the commercial real estate has been inaccessible thus far due to complex due diligence, time-consuming asset management, and limited exit options.&nbsp;With a low-ticket size of Rs 25 lakhs, retail investors can now have access to superior service from leading proptech platforms such as hBits and earn average rental yields in the range of 9-10% from Grade A real estate properties such as offices, warehouses, and data centers. Such property has also proved its resilience in troubled times.&nbsp;At the peak of the pandemic in 2020, 46% of the total institutional investment in India was in the office market. Over 900 million sq ft of Grade A commercial assets are growing over 40 mn sq ft every year, ensuring a steady supply of premium assets.&nbsp;Further with the scientific and data-driven process of asset selection and management through a completely transparent process, investors can be assured of total safety. Further, fractional ownership provides the advantage of liquidity, unlike PPF. Thus, an investor may choose to liquidate his fraction to a willing investor at any time through proptech platforms. However, experts recommend a holding period of at least five years to make significant gains on investment.&nbsp;<h2 style="margin-left:0px;">Number bear witness</h2>Now let’s consider an example. Say, instead of making an annual investment of Rs 1.5 lakhs in PPF each year, an investor makes an initial investment of Rs 25 lakhs in a Grade A property. Property price grows at an assumed 7% each year (assumed to bring in parity with PPF). In six years, the value would therefore be approximately Rs 38 lakhs.&nbsp;The rental yield for the first three years is assumed at 9% and around 10% from the fourth year (there is an increase in rental yield every 3 years). The total rental income for the period therefore would be Rs 14 lakhs. Therefore, the total return on Rs 25 lakhs investment would be approximately Rs 52 lakhs. This would then suffice to meet life goals such as higher education or saving for retirement in a shorter time frame as compared to a PPF.&nbsp;As is clear from the example above, while PPF comes with a sovereign stamp, the <a href="https://hbits.co/">fractional ownership</a> model in commercial real estate is equally safe and stable. Not only does it offer superior returns, but it also comes with the promise of transparency and liquidity from proptech firms like hBits. Investors can thus consider <a href="https://hbits.co/fractional-ownership-investment">fractional investment</a> in lieu of PPF to meet their financial goals.

Analyze PPF against real estate fractional investments. Learn why fractional ownership offers better returns, liquidity, and stability for financial goals.

PPF or Fractional Investment: Which is the Right Choice? | hBits

Most Indian investors saving for long term goals like saving for the higher education of their children or building a retirement corpus are usually risk averse and seek guaranteed returns. As a result, the Public Provident Fund (PPF) has found place in the financial portfolio of most Indians, with generations of India&nbsp;

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PPF vs fractional investment- The pursuit of financial goals

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Mutual funds invest in Equity or Debt. India has had a savings-to-GDP ratio of close to 30% or more since a long time. However, more than 80% of these savings are used to go into physical assets such as real estate and gold. The scenario has changed in favor of financial assets after making SIPs in Mutual Funds a popular option. With discount brokers tapping the vast Indian market, the number of Demat accounts has increased manifold too.&nbsp;The key takeaway is that technology and awareness can disrupt a traditional market. It has brought about a culture of investments in the stock markets, either directly or through mutual funds.&nbsp;<h2 style="margin-left:0px;">Can the same disruption be brought into real estate?</h2>The stock market and mutual fund industry went about creating investment convenience by leveraging technology and enhancing awareness to increase the mass appeal and understanding of their products. The real estate industry could take a leaf from this book.&nbsp;<h2 style="margin-left:0px;">Fractional Ownership – Is it SIP equivalent for Real Estate?</h2>Let us first understand what ‘Fractional Ownership’ (FO) in commercial real estate is. For a millennial or a working professional, a residential real estate investment entails taking a loan and servicing its principal and interest for a period of twenty years or more. <a href="https://hbits.co/commercial-real-estate-investment">Investment in Grade A commercial real estate</a> just seems out of question.&nbsp;With Fractional Ownership and the use of technology, it is very easy for professionals to make a safe investment in real estate. The principal investment is not as low as SIP, but it is much cheaper than the investment for a 1-Bhk flat in a city like Mumbai.&nbsp;<h2 style="margin-left:0px;">Why is it considered ‘safe’?</h2>‘Fractional Ownership’ enables you to gain ownership of a ‘fraction’ of grade A commercial real estate. The investment could be as low as Rs.25 Lakh to own a fraction. Now, let’s compare that with owning a house as an investment and earning a rental income: -&nbsp;<ul><li>Finding Tenants: -&nbsp;If you own a house and do not occupy it yourself, you may have to find a tenant so that you can earn a rental yield on the asset. Finding the right tenant may take time. Further, due to unprecedented events such as COVID, there could be long periods of time wherein the flat that you own couldn’t be let out. In such a case, you lose the potential rental yield while you pay EMIs for the flat every month. The actual yield of your account for the interest you pay on the loan for the said flat may be very less. With Fractional Ownership (FO), the company managing the Grade A commercial Real estate will scout for the tenant. They have long-term contracts of usually three years or more and lock-in agreements with reputed companies. Hence, you are unlikely to lose rental income and yield for the fractions that you own.&nbsp;</li><li>Management, Maintenance, and Repair: -&nbsp;The owner of a house must constantly manage and repair his house. They must address complaints regarding facilities that come from the tenant and resolve them. It consumes the time and effort of the owners of such flats. With fractional ownership, the maintenance and management of the property are taken care of by the company managing it. They are professionals who would take care of managing the upkeep requirements of the tenants who occupy spaces in the properties that you have purchased fractions in.&nbsp;</li><li>Assured Returns:&nbsp;- Grade A commercial real estate, unlike residential properties, is normally located in business centers or popular parts of the city. Such spaces are always in demand and there are MNCs or highly reputed companies that are always looking out for such properties. Hence, the rental yield and capital appreciation of ‘fractions’ owned by the investors are almost assured.</li></ul>&nbsp;Due to these reasons, there is a very minuscule possibility that your rental yield or capital appreciation will be compromised. On the contrary, data shows that one can safely assume a capital appreciation of 5% and a rental yield of 8% per annum over a five-year period.&nbsp;So, it is comparatively safer than riskier assets and it yields more capital appreciation than the safer assets. The fact that it is a derivative of real estate makes it far more appealing and interesting for consumers.&nbsp;<h2 style="margin-left:0px;">Can it create wealth in the long term like SIPs?</h2>If you look at a traditional investment such as a fixed deposit, then fractional ownership in grade A commercial real estate can yield 27.37% more return on investment over a five-year period.&nbsp;If you want to know more about the mathematics behind this, please&nbsp;<a href="https://hbits.co/">click&nbsp;here</a> and drop an interesting inquiry to us.&nbsp;Like a Mutual Fund SIP with a dividend reinvestment plan, if you start investing the rental yield and capital appreciation back to own more fraction, it can create tremendous wealth over time, especially for youngsters and millennials.&nbsp;If you are disappointed that you missed the post-pandemic ‘real estate’ boom, don’t worry. Get onboard the fractional ownership bandwagon and create a brighter future for your loved ones and yourself.

Discover the similarities between SIPs in the financial market and fractional ownership in commercial real estate, which can result in higher returns at lower risk.

Is Fractional Ownership the Real Estate Equivalent of SIP?

‘Mutual Funds sahi hai’ (‘Mutual Funds are apt/correct/right for investments). There is an extensive campaign around SIPs in Mutual Funds urging users to save by investing as less as Rs.500 per month and grow the wealth over a period. It is prudent to have experts in financial markets managing your…

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Did you wish there could be a (SIP) in real estate?

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<div class="raw-html-embed"></div>Fractional real estate investing, or Fractional ownership, is the new Buzzword in the Indian real estate market, democratizing the way real estate investment&nbsp; is perceived in India.&nbsp;In the post-coronavirus world, investors remain on the lookout for different avenues of investment. Apart from the traditional instruments like Gold, Fixed Deposits and government bonds, real estate remains a consistent favorite. Having proven to be a successful investment model in India, people are always looking out for real estate assets, especially commercial assets owing to better cash flows. However, unlike previous generations who were able to invest considerable savings in Gold and Land, today’s urbanites have been limited to investing in residential apartments or small plots.&nbsp;Investing in quality Grade A real estate in India- so far - has required considerable money, connections and comprehensive knowledge, keeping the options open only to high net worth and ultra high net worth individuals. Not everyone has the cash on hand to buy a home or office, renovate or remodel, and then either rent it out or flip it.&nbsp;The commercial real estate space especially, has been a playground for large corporate entities and wealthy investors only- The high prices and complex investment process keeps retail investors from investing in big-ticket commercial real estate assets. Retail investors and middle-class investors were both hesitant and incapable of investing in large commercial projects.&nbsp;For these investors, the only way to get into this market is through fractional real estate investing.&nbsp;With Fractional Ownership, retail investors can now invest small amounts to buy fractions of otherwise unaffordable yet highly profitable real estate.&nbsp;Fractional property investment has emerged as a promising concept, owing to its low risk and high return properties serving as a boon for retail investors to make profitable investments that would provide long term capital appreciation as well as stable monthly return. Although Fractional Ownership of real estate has been in trend in the USA and Europe for a long time, this is picking up pace in India. The fractional ownership market in India is expected to grow 16% year-on-year and reach $ 3 Bn in the next few years.&nbsp;Let us go into the finer details of this growing trend.&nbsp;<h2>What is Fractional ownership in real estate?&nbsp;</h2>&nbsp;<img class="image_resized" style="width:85.71%;" src="https://hbits-aws-aps1-prod-s3-hbitsv2-strapi-uploads.s3.ap-south-1.amazonaws.com/image_de8ee2f755.png" alt="image.png" srcset="https://hbits-aws-aps1-prod-s3-hbitsv2-strapi-uploads.s3.ap-south-1.amazonaws.com/thumbnail_image_de8ee2f755.png 235w,https://hbits-aws-aps1-prod-s3-hbitsv2-strapi-uploads.s3.ap-south-1.amazonaws.com/small_image_de8ee2f755.png 500w," sizes="100vw">&nbsp;Fractional Real Estate Investment is essentially partial Ownership in big-ticket size properties, jointly operated by a group of investors and pooled investment. These large properties do not otherwise fall under the investment potential of retail investors. The real estate management company invites retail inventors to invest a certain amount and take benefit from the high yields and capital appreciation&nbsp;&nbsp; Fractional ownership in real estate gives you a stake in the real estate and makes you a part-owner. Let us understand this with an example. An asset management firm is managing a Grade A <a href="https://hbits.co/properties">commercial property</a> worth Rs 20 crore, leased to a large MNC. They invite 100 retail investors to invest Rs 20 lakh each and earn fixed monthly returns as well as capital appreciation at the time of exit, in proportion to their investment. This is fractional ownership.&nbsp;The asset manager lists a range of such properties, as potential investments, on a tech enabled platform. The minimum ticket size for each investment is decided, and investors are invited to buy portions of the asset as per their capacity and risk appetite.&nbsp;<h2>Benefits of fractional real estate investment</h2>Despite being a comparatively new investment class in India, fractional ownership is a growth-oriented domain that is gaining traction and popularity. Some of the key benefits of fractional investment as an investment class are as follows:&nbsp;&nbsp;<h3>1) Lower barriers to entry</h3>Grade A real estate investment was previously an option only for the wealthy. By splitting the cost of an asset among various investors, <a href="https://hbits.co/fractional-ownership-investment">fractional real estate investment</a> significantly reduces the barriers to entry, allowing retail investors with a few lakhs to invest to gain access to high quality real estate.&nbsp;<h3>2) Reduced financial risk:&nbsp;</h3>By owning a smaller percentage of the property, fractional property investment reduces the financial risk for individual investors. If the property incurs losses, those losses are shared proportionally amongst the owners, minimizing the impact on any one investor&nbsp;<h3>3) Increased Liquidity:&nbsp;</h3>Fractional ownership in commercial real estate can provide increased liquidity as it can be easier to sell a fraction of a property than to sell an entire property. This allows investors to more easily exit their investment if needed.&nbsp;&nbsp;<h3>4) Professional property management:&nbsp;</h3>By pooling resources, fractional ownership can provide access to professional property management services, which can help reduce management costs and increase the overall value of the property<h3> 5) Diversification of Investments:&nbsp;</h3>Fractional ownership can provide investors with the opportunity to diversify their investments, spreading risk across multiple properties and reducing concentration risk. Investors can make multiple small investment across different types of This can help to mitigate the potential losses that might result from a downturn in any one particular sector or region of the market &nbsp;<h2>Drawbacks Of Fractional Property Investment&nbsp;</h2>Like any investment,&nbsp;<a href="https://hbits.co/properties">fractional property investment</a> has its downsides too.&nbsp;<h3>Harder to finance/ raise debt</h3>Financing an asset with many investors isn’t the same as financing a single-family home. Mortgages are usually made for one or two people, not many. Fractional investment is easiest when you buy the property outright in cash, but may present complications for people trying to rasie debt to invest in real estate.&nbsp;<h3>Potentially unknown co-owners</h3>If you’re using a fractional real estate company to facilitate the purchase and manage the property, you’re probably getting into it with many buyers who you don’t know. That could create headaches down the road if disputes arise.&nbsp;<h3>Understanding the Cost Structure</h3>If you’re having a manager operate the fractional property, you’ll want to understand how much you’re paying and what potential fees you’ll be liable for. Even if this is more of a financial transaction and you own shares, you’ll need to understand what the fee structure is. It’s not unusual for an asset manager to take a 1 percent cut on the sale or disposition of a property, and you may also be charged for ongoing management of those assets, depending on the arrangement.It’s vital that you understand the fees and what you’ll have to pay. And while you’re at it, you’ll want to investigate how you can exit the investment and the fees associated with that.&nbsp;<h3>Less control</h3>One of the perks of buying your own property is deciding what is best for yourself. When you share that property with other people, you lose out on some of that control. The more shareholders or owners are in the mix, the less say you get in how a property is managed.&nbsp;<h2>Who should invest in Fractional Property?</h2>Fractional real estate investment is best for:<ul><li>Those looking to break into real estate investing: If you want to get your foot in the door with a little bit of cash and not a ton of experience, fractional property investment might be a good idea.</li><li>Buyers looking for a non-primary property: Buying a home with other people means you split ownership. Only go this route if you don’t plan to live in the home.</li><li>Investors who have done their homework: Scour different fractional real estate investing sites to see which ones have insight into the neighborhoods and locations you’re exploring. Some of these fractional real estate startups are based in specific cities or regions, which might limit where you can buy. Even if there’s a lower barrier to entry, you can still do your due diligence and find the best company to go with before you buy. In some cases, you might invest fractionally without the help of a company.</li></ul>&nbsp;<h2>Bottom line</h2>Fractional real estate investing is one way to boost your passive income and break into real estate investing. It’s a great option for investors with limited funds who don’t want the burden of owning and maintaining an extra property, but it does come with work. Before you fully dive in, calculate the possible returns to make sure you’re maximizing your investment potential. &nbsp;<h2>Frequently Asked Questions</h2>&nbsp;<h3>Q1. Is fractional ownership legal in India?</h3>Ans. Fractional ownership is legal in India. Real estate developers offer it, allowing multiple investors to own a portion of a property. It enables investment without bearing the full cost and offers flexibility and liquidity.<h3> &nbsp;Q2. How does fractional ownership in real estate work?</h3>Ans. In Fractional ownership multiple investors pool their funds to purchase a property. Each investor owns a percentage share of the fractional property proportional to their contribution.<h3> &nbsp;Q3. Is fractional investment worth it?</h3>Ans. Fractional investment can be worth it for investors looking to diversify their portfolio and invest in real estate without committing a significant amount of capital.<h3> &nbsp;Q4. Is fractional real estate investing risky?</h3>Ans. Fractional real estate investing can carry risks, just like any other investment. It is essential to do your research and understand the potential risks involved before investing in fractional real estate.

Learn the benefits of investing in fractional real estate in 2025. This low-risk, high-return approach is gaining popularity among Indian retail investors.

Advantages of investing in fractional real estate in 2025

Fractional real estate investing, or Fractional ownership, is the new Buzzword in the Indian real estate market, democratizing the way real estate investment  is perceived in India.

Benefits of Fractional Real Estate Investing in 2023

Fractional real estate investing, or Fractional ownership, is the new Buzzword in the Indian real estate market, democratizing the way real estate investment&nbsp; is perceived in India.

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Benefits of Fractional Real Estate Investing

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<h2>Missing the ‘Real-Estate’ Boom? Here’s a smart way to ride it with fractional investing</h2>The pandemic brought about lockdowns and central governments across nations loosened their purse strings. As more money crept into the system, interest rates for loans on real estate went to record lows. As India successfully embarked on one of the world’s largest ‘vaccination drives’ and the threat of the pandemic began to diminish, real estate across cities saw a major surge.&nbsp;&nbsp;The residential market for the top 7 cities recorded sales of over 62,000 units in Q1 2023, an increase of 15% sequentially and 20% y-o-y, across the top 7 cities of India. In fact, this is the highest quarterly sales in the last 15 years demonstrating enhanced consumer confidence despite the global headwinds. <a href="https://hbits.co/commercial-real-estate-investment">Commercial real estate</a> has matched the pace too.&nbsp;Gross leasing activity for the calendar year 2022 was recorded at 49.8 mn sq ft, hitting a three-year high as a COVID-free year and greater certainty in the business environment supported on-ground real estate activity with occupiers approaching their portfolio strategies with much more clarity. So it’s about time, budding investors start looking into fractional investing.&nbsp; &nbsp;&nbsp;<h2>Is it too late to get into Fractional Real Estate Investment?</h2>When the sparkling growth of an asset class comes along, an investor tends to pay attention. Many are feeling a sense of having missed the bus. The reasons could be that the real estate they selected or the ones that suit them may be out of budget even with the loans they are eligible for.&nbsp;&nbsp;While we do not want to delve into the reasons as it is best known to the reader/ investor, we wish to highlight <a href="https://hbits.co/fractional-ownership-investment">fractional real estate investment</a> as an asset class is increasingly becoming popular. Fractional property investment enables you to take exposure in real estate without the hassles of having to read through documents, scout for buyers, manage tenants, maintain, and repair the property, etc.&nbsp;Fractional real estate investment helps you to earn a rental yield of around 8-10% and a capital appreciation of around 5-10% per annum in a hassle-free manner while ensuring that tenants are highly reputed and financially stable companies.&nbsp;&nbsp;<h2>Fractional Ownership Real Estate – A well-balanced asset class</h2>What is fractional ownership of commercial real estate? To explain it in layman's terms, Fractional ownership real estate pools investment from many investors into premium Grade A commercial real estate and enables all investors to partake in a share of profits in terms of both rental yields and capital appreciation. The investors are allotted ‘fractions’ based on their investment and they can sell the fraction later.&nbsp;&nbsp;The minimum investment to own a ‘fraction’ is INR 25 Lakhs. In a city like Mumbai, even a one-bedroom residential property will block almost twice the amount for you. Moreover, the fractions are derived from grade A commercial property that is managed by professional companies. With such reputed tenants and professional management of the properties, we can assume a 5-10% capital appreciation and an 8-10% rental yield annually. As per these metrics, the sum of the rental yield and capital appreciation would give you steady long-term returns at a target IRR of 13-20% over a period of five years. This is a much more lucrative investment option when compared to ‘Fixed Deposit’ which is a minimum-risk asset class with an interest rate of about 7% per annum.&nbsp;&nbsp;<h2>Is there any risk involved in Fractional property investment that I should be aware of?</h2>There are almost no asset classes that yield great returns without having an element of risk. The ability of the investor to understand the risk and know how to mitigate it is what makes an asset class attractive.&nbsp;&nbsp;With <a href="https://hbits.co/">fractional ownership real estate</a>, most of the risks are covered. Here’s a gist of how the perceived risks is addressed: -&nbsp;<ul><li>Extensive Due Diligence property:&nbsp;The Grade A pre-leased commercial real estate is vetted and validated across all aspects by professional management. The ‘fractions’ that you invest in would have undergone significant due diligence across every aspect. It provides a great cushion of comfort for the investors and gives them comfort against any perceived risk with regard to the fractional property investment.</li></ul>&nbsp;<ul><li>Creditworthy and Reputed Tenants:&nbsp;The tenant at the other end of the fraction that you own is a reputed company with robust financials. They enter into lock-in agreements of three years or more and hence you do not have to scout for a tenant every year in fractional ownership real estate unlike in residential real estate.&nbsp;</li></ul>&nbsp;<ul><li>Professional Management of Operations:&nbsp;The <a href="https://hbits.co/preleased-property">pre-leased commercial real estate</a> is managed by a professional company that takes care of rent collection, ancillary services, operations, and upkeep of the property, etc. In essence, your ‘fraction’ is also well managed and hence you needn’t worry about rental yield. You also needn’t worry about the next buyer because the company managing the fractional real estate will take care of it.&nbsp;</li></ul>&nbsp;<ul><li>Capital Appreciation: Due to extensive due diligence, the location of the property chosen is such that it lies in an area where there is a huge demand for pre-leased commercial fractional real estate and multiple reputed companies are always on the lookout for such spaces. Hence, the minimum capital appreciation of 5% per annum has been factored in and there could be instances when it can be more than the percentage of appreciation assumed.&nbsp;</li></ul>&nbsp;<ul><li>Computation and Collection of Returns:&nbsp;With neat dashboards, the company managing your fractions can provide you with the latest updates on the status of your fraction and the value that it could be returning at that point in time. You needn’t worry about the computation of the returns or collection of the same when you sell your fractional ownership real estate. Everything is managed through digital interfaces and the transactions and payments are seamless.&nbsp;</li></ul>&nbsp;<h2>Wrapping up</h2>Fractional Ownership is a great way to ride the real estate boom with almost all risk factors addressed. It can help you to sleep peacefully while your fractions make a good return over time. As per many reports on the state of the economy and real estate, the commercial and residential real estate boom is not going to fade away soon, and hence the time is ripe and right for fractional investing of grade A pre-leased commercial real estate.&nbsp;&nbsp;<h2>Frequently asked questions</h2><h3>Q1. Can you make money in fractional property investment?</h3>Investors can profit from fractional property investment by diversifying their portfolio with various properties and asset classes. They can earn returns through rental income or appreciation. Fractional property ownership lets investors participate in real estate investing without owning an entire property, resulting in potential passive income.&nbsp;<h3>Q2. Is fractional real estate investment legal in India?</h3>Fractional real estate investment is not regulated or recognized by the Indian government yet but that’s not to say it’s illegal in India.&nbsp;<h3>Q3. Can I sell my fractional ownership real estate?</h3>Yes, you can sell your fractional ownership real estate; however, it's important to review the terms of your ownership contract as some may have provisions that restrict the sale or require approval from other owners.&nbsp;<h3>Q4. How does fractional property investment work in India?</h3>In India, fractional property investment typically involves investing in a property through a Real Estate Investment Trust (REIT) or a Fractional Ownership Platform (FOP). Investors can buy shares in a REIT or invest in a property through a FOP, which manages the property and distributes rental income and capital appreciation to the investors.

Investigate fractional ownership to potentially generate 8–10% in rental returns together with capital growth. Start building your wealth today.

Invest fractionally to capitalize on the booming real estate market

Dive into real estate with ease through fractional investing. Unlock opportunities in fractional real estate investment & fractional property investment.

Fractional Investing: Key To Fractional Property Investment

Dive into real estate with ease through fractional investing. Unlock opportunities in fractional real estate investment &amp; fractional property investment.

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Fractional Investing: The Key To Real Estate Investment

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The Indian commercial real estate market is expected to witness a surge in demand for more reasons than one. Indian Prime Minister Shri. Narendra Modi has set up a vision for the country to become a five trillion-dollar economy by 2024-25. To achieve this, the government has been implementing various programs such as ‘Make in India’ and offering Production Linked Incentives (PLI) across ten key sectors such as Textile, Pharmaceuticals, Electronic Products, etc. This has led to an increase in job creation and demand for commercial real estate. Globally reputed brands are setting up their offices in India.&nbsp;<h2 style="margin-left:0px;">The accelerated Digitization push</h2> The accelerated digitization push across sectors has led to IT companies hiring at an unprecedented pace and creating jobs faster than ever. They have also begun to set up more development centers across Tier-2 and Tier-3 cities to enable employees to work and stay closer to their homes rather than migrating to far away metros. This has led to a further push in commercial real estate. Large international brands have also set up their offshore development centers and captive centers in India which further accelerates the demand for commercial real estate.&nbsp;<h2 style="margin-left:0px;">The hybrid model of work</h2> The hybrid model of work has also led to a surge in demand for office spaces as many companies are now opting for co-working spaces so that they can enable their employees to enjoy a flexible model of working.&nbsp;A JLL Report predicts that India’s co-working market is likely to cross 50 million square feet by 2023. The adaptable office space is expected to grow at around 15-20 percent per annum consistently for the subsequent three to four years. This factor, coupled with the rapid rise in Datacenters and cloud adoption is also going to create a tremendous increase in demand for commercial real estate. It is no surprise then that various avenues for <a href="https://hbits.co/commercial-real-estate-investment">investments in commercial real estate</a> are being offered to investors. These include – REITs and <a href="https://hbits.co/">Fractional Ownership</a> among others.&nbsp;<h2 style="margin-left:0px;">How do REITs work?</h2>Let’s first understand what a Real Estate Investment Trust (REIT) is. REIT is a company that owns, operates, or finances income-generating real estate. The REIT enables individual investors to invest in very expensive commercial real estate and earn dividends to the extent of their investment. REITs pay as much as 90% of their earnings back to investors by way of dividends. The advantage for investors is that they may not have to buy the property in its entirety. They also do not have the onus of finding tenants, taking care of lock-in agreements, and maintaining the property while they can still enjoy a large part of the earnings generated by commercial real estate.&nbsp;<h2 style="margin-left:0px;">Is Fractional Ownership a better option?</h2>Fractional Ownership democratizes access to Grade A commercial real estate. It is no more an exclusive playground of the ultra-rich. Investors can buy ‘fractions’ of high-quality commercial real estate occupied by highly reputed companies. hBits has currently enabled investors to invest in such premium real estate by enabling you to buy ‘fractions’ for as less as INR 25 Lakhs. Well, that’s way lesser than what you would pay for a 1 BHK flat in Mumbai. Not to mention that you needn’t scout for tenants, maintain the property, collect rent, or work on agreements. You can enjoy a consistent rental yield and sell the fraction at any time through a seamless digital interface. This is because such real estate offers not only a consistent rental yield but also appreciation in the capital due to the ever-increasing demand for premium commercial real estate.&nbsp;<h2 style="margin-left:0px;">Does Fractional Ownership score over REITs?</h2>India’s first REITs which came in the first half of 2019 raised ₹4,750 crores (US$ 679.64 million). It saw interest from both domestic and international investors. This clearly indicates that commercial real estate in India is an attractive proposition that can make one safely assume that rental yield and capital appreciation are going to rise. However, while REITs investors may get dividends that come from the monthly rental income earned by commercial real estate, they may not enjoy much in terms of benefits due to capital appreciation.&nbsp;With fractional ownership, the investor can select the property into which he or she invests. Investors can take an informed decision on <a href="https://hbits.co/fractional-ownership-investment">investing in the property through fractional ownership</a>. The decision can consider various factors such as the location, type of tenants, proximity to airport and business districts, etc. This can enable them to enjoy a rental yield and capital appreciation over time.&nbsp;<h2 style="margin-left:0px;">hBits – A transparent platform for fractional ownership</h2>hBits has been working at the intersection of finance, real estate, and technology to create a seamless digital interface (web portal) that can enable investors to have real-time access to the value of the fractions they purchase. With hBits, an investor can buy the fraction in just a few clicks. What’s more, he can monitor the value of the fraction, the rental yield, and the income that his fraction has generated over time. The sale of the fraction can also be initiated with just a few clicks. The greatest fear of a real estate investor – the illiquid nature of the asset – is thus taken care of. With hBits, buying a fraction of commercial real estate is as simple as buying a stock. The fraction ensures not only a share of the steady monthly rental income but also capital appreciation over time.&nbsp;<h2 style="margin-left:0px;">Fractional Ownership – The future of Commercial Real Estate&nbsp;</h2>While the Fractional Ownership v/s REITs debate can rage on, the Commercial Real Estate market is massive, and such investment avenues can co-exist. Over time, investors will clearly realize the difference in terms of their returns and the ease of managing such investments and make their own ‘prudent’ choice to settle this debate.

Compare REITs and Fractional Ownership to find the best investment option in India's growing real estate market. Explore pros, cons, and potential returns.

REITs vs Fractional Ownership: Which One to Choose? | hBits

The Indian commercial real estate market is expected to witness a surge in demand for more reasons than one. Indian Prime Minister Shri. Narendra Modi has set up a vision for the country to become a five trillion-dollar economy by 2024-25. To achieve this, the government has been implementing various programs such as ‘Make in India’ and offering

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REITs v/s Fractional Ownership | What should you pick & why?

fractional ownership commercial real estate

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Let’s do what we enjoy while the money keeps flowing into our bank account every month. Love the sound of it? Good news. It is achievable too. Try ‘Fractional Ownership’.&nbsp;<h2>What is Fractional Ownership?</h2>Fractional Ownership is a percentage ownership of a high-value tangible asset wherein several unrelated individuals can own ‘fractions’ of an asset and enjoy the returns and capital appreciation proportionately. The risk in fractional property investment, however, is mitigated to a large extent.&nbsp;Consider a well-managed&nbsp;<a href="https://hbits.co/preleased-property">pre-leased commercial real estate</a>. As it is occupied, the monthly rentals will ensure a steady income flow. Further, the furnishing, fit outs, and shared services such as concierge, technical support, etc. are paid for by the tenants resulting in multiple income streams. The rental agreements come with a lock-in period of three to five years, so the revenue is assured and recurring in nature. Also, the companies which occupy such premium real estate are reputed firms with very good credit ratings hence less chance of default.&nbsp;&nbsp;<h2>What will the value of my fractional ownership properties be in five years?</h2>Let’s say you invest INR 25 Lakhs to own a ‘fraction’ of premium commercial real estate. Let us assume rental yield at 8% per annum which is higher than the interest earned through a savings account, fixed deposit, or any other fixed income assets. The return per year on your investment would be ~INR 2 Lakhs and increasing by 4-5% every year.&nbsp;The premium real estate occupied by reputed companies would be in a very accessible and popular part of the city and may appreciate at around 5-7% per annum. Hence, in five years, the value of your fractional ownership commercial real estate would appreciate to INR 31-36 Lakhs ,depending on capital appreciation.&nbsp;The total return of your&nbsp;<a href="https://hbits.co/fractional-ownership-investment">fractional property investment</a> in five years would be at least INR 41- 46 Lakh, assuming no rental escalation and a capital appreciation of 5-7% Lakhs which is ~60-80% return on investment in 5 years. Such returns can easily compete with the best financial instruments available in the market today.&nbsp;&nbsp;<h2>How can Fractional ownership in real estate set you on the path to Financial Freedom?</h2>Compounding, they say, is the eighth wonder of the world. If you start re-investing your returns into&nbsp;<a href="https://hbits.co/">fractional ownership in real estate</a>, you will own multiple ‘fractions’ over time and it would create multiple recurring revenue streams. The best part is that these returns are hassle-free and managed by a professional ‘fractional ownership’ platform on your behalf while you enjoy transparent and clear insights on the returns that you make.&nbsp;These multiple income streams may soon set you on a path to ‘financial freedom’ – which means that your fractional property investments will yield more returns than the cost and expenses that you incur every month.&nbsp;&nbsp;With ‘fractional ownership in real estate’, you can embark on a journey to financial freedom – hassle-free and with very less risk. What more can you ask for as an individual investor?&nbsp;&nbsp;<h2>What makes fractional property investment a lucrative investment option in 2023 ?</h2>&nbsp;<ul><li>Relatively Low-Risk Investment:&nbsp;The clear mantra in the financial markets is that the greater the risk, the greater is the return. However, in the case of fractional ownership commercial real estate, the downside risks are limited. With professionally managed companies taking care of your ‘fractions’, you can sit back and enjoy the show. There are very few investments that return more than 10% per annum over five years with limited risk, hence ‘fractional ownership in real estate’ is a rarity. &nbsp;</li><li>Build your corpus of Emergency funds from fractional ownership properties:&nbsp;The steady return that you generate from fractional ownership properties can be left untouched and used as a corpus to navigate a ‘rainy day’. An emergency such as an accident, health issue, etc. will come unannounced. However, becoming prepared for it financially is in your hands and fractional ownership properties are a very positive step towards it. &nbsp;</li><li>Enhance Real-Returns on your investments: Inflation at around 5% normally eats into the real returns that you make on your investments. Hence, any investment which returns less than 5% doesn’t add much value to the real returns that you make. Your savings account in most banks in India may return 4% or even less per annum. A Fixed Deposit at 6%-7% may just beat inflation but is still not efficient in terms of returns. On the other hand,&nbsp;fractional ownership properties can enable you to beat inflation with real returns. Why not make your money as responsible and hardworking as you are? Start with <a href="https://hbits.co/">fractional ownership</a> in real estate today. It is better explained in the table below and the additional amount that you might make on your fractional property investment over a five-year period is significant.&nbsp;</li></ul>&nbsp;Isn’t it just fantastic that you will make more than Rs. 10 Lakh over five years with fractional ownership than in a Fixed deposit if you invest Rs. 25 Lakhs? It’s time to give it some serious thought.&nbsp;&nbsp;Kick ‘compromise’ out of the window: No more compromises in life. Send your children to the best schools. Fund your dream house, car, or electronic gadget today. It's time to go the ‘fractional ownership’ way, attain financial freedom and create a happy future for your family and you.&nbsp;&nbsp;<h2>Frequently Asked Questions</h2>&nbsp;<h3>Q1. How to find the best fractional ownership properties in India?</h3>If you're looking to invest in best fractional ownership properties in India, here are some tips to help you find the best ones:<ul><li>Do your research</li><li>Check the reputation of the developer</li><li>Check the property documents</li><li>Check the amenities and services</li><li>Consider the location</li><li>Seek professional advice</li></ul>&nbsp;<h3>Q2. What is fractional ownership property?</h3>Fractional ownership property is a concept where multiple investors pool their money together to purchase a share in a property. Each investor owns a fraction of the property and is entitled to a proportionate share of the rental income and capital appreciation.&nbsp;<h3>Q3. What are the tax implications of fractional property investment India?</h3>The tax implications of fractional ownership in India depend on several factors, including the percentage of ownership, the type of property, and the duration of ownership. It is important to consult with a tax expert or financial advisor to understand the tax implications of fractional ownership in India and to ensure compliance with applicable tax laws.&nbsp;<h3>Q4. How is rental income distributed in fractional ownership?</h3>Rental income in fractional ownership properties is typically distributed among the investors based on their percentage of ownership in the property. The property management company, which is responsible for managing the property and collecting the rent, calculates the rental income and distributes it among the investors based on their share in the property.

With fractional ownership in commercial real estate, you can become financially independent. Savor large profits, low risk, and consistent income.

Achieve Financial Freedom with Fractional Ownership | hBits

Explore the best fractional ownership properties & seize opportunities in commercial real estate. Optimize your investments today.

Unlock Commercial Real Estate Opportunities In 2023

Explore the best fractional ownership properties &amp; seize opportunities in commercial real estate. Optimize your investments today.

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Fractional Ownership: The Secret To Minimal Risk and Financial Freedom

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By the year 2050, 25% of the population in countries of OECD and nearly 20% of the global population would be over 65 years. However, there is enough empirical evidence to show that barely a quarter of the population globally invests with retirement as a goal. India, which is expected to have 315 million people by the year 2050, is no exception to this rule.&nbsp;<h2 style="margin-left:0px;">Is NPS the best choice?</h2>As reported by the Financial Express in the recent past,&nbsp;<a href="https://www.financialexpress.com/economy/indians-not-saving-enough-for-retirement-shows-survey/2110248/">a survey done by PGIM India Mutual Fund and Neilsen</a>&nbsp;in late 2020 shows that 51% of the survey participants had no retirement plan at all. Among the others, who had some retirement plan, the National Pension System (NPS) was a popular choice as it is a low-cost tool, is reasonably tax efficient, and has various debt and equity options that an investor can choose from based on his risk appetite. At all times, however, 25% of the corpus remains invested in debt to ensure capital security.&nbsp;Despite its obvious advantages, NPS has some limitations that do not make it best suited for retirement planning. One of the most glaring limitations is the long lock-in period of 25 years. Only partial withdrawal up to merely 25% is allowed, that too on specific grounds such as higher education or a wedding of children, treatment of COVID, and serious health grounds.&nbsp;Further, an investor must make contributions up to a minimum of 10 years to qualify for a partial withdrawal and cannot consider another withdrawal before 5 years.&nbsp;Another drawback of the NPS is the lack of flexibility in reinvestment options post-maturity. At the age of 60, it is mandatory for an NPS investor to put 40% of his corpus into a low-yield option (3-7% pre-tax). If he chooses to exit before retirement age, he must use 80% of the corpus to buy an annuity. The income from the annuity too is taxable in the hands of the investor at the time of receipt.&nbsp;While NPS may be popular owing to its affordability, for middle-income investors looking at a tax-efficient and flexible means to build a retirement corpus the NPS may not be the best option to consider. Investment avenues such as fractional ownership are better suited to retirement planning as it provides better returns and flexibility.&nbsp;<h2 style="margin-left:0px;">Why fractional ownership?</h2>Fractional ownership is a relatively new concept in India that has of late been making waves in investment circles. In India, there is a high degree of emotional value attached to real estate and owning one’s own property is considered an important milestone. However, it is a little-known fact that commercial real estate is a viable and lucrative investment option for retail investors.&nbsp;But how do retail investors for whom, commercial real estate has been inaccessible so far owing to ambiguity get access to this largely unexplored investment avenue. Enter proptech start-ups such as hBits. As covered in YourStory,&nbsp;<a href="https://yourstory.com/2021/03/hbits-proptech-startup-real-estate-fractional-ownership/amp">hBits combines real estate, technology, and finance</a>&nbsp;to create a platform that is ideal for middle-income investors to invest with a low ticket size of Rs 25 lakhs in numerous Grade A commercial properties with a pre-stipulated exit strategy.&nbsp;As explained in Financial Express while fractional ownership in real estate is not regarded as a traditional option retirement planning&nbsp;<a href="https://www.financialexpress.com/money/nps-vs-fractional-property-where-should-you-invest-for-retirement/2272963/">scores over NPS on both returns and flexibility</a>.&nbsp;<h2 style="margin-left:0px;">Superior returns as compared to NPS</h2>The NPS has gained popularity for delivering&nbsp;<a href="https://www.paisabazaar.com/saving-schemes/nps-returns/">good returns</a>&nbsp;in the 9-12% range. The average rental yields on <a href="https://hbits.co/properties">commercial real estate property</a> are about 9%. Add to that the annual capital appreciation factor of 7-16% annually and it far outweighs NPS returns. It is also notable in this context, that despite a pandemic-related slowdown, and the rise of remote working, grade A commercial real estate office assets have remained a frontrunner in Q1 FY2021, accounting for more than 58% of the real estate investments.&nbsp;Further reiterating the prospects of commercial real estate, rating agency ICRA notes that the office leasing segment witnessed the least impact on operational cash flows during FY2021. With collections from existing leases largely intact, and the need for larger spaces increasing in post-COVID environments, commercial real estate is on firm grounds.&nbsp;<h2 style="margin-left:0px;">Liquid and stable</h2>As mentioned earlier, the lock-in period in NPS is 25 years making it a highly illiquid investment avenue. In comparison, fractional ownership in commercial real estate is liquid and more flexible in this regard as there is neither any withdrawal limit nor any lock-in period with regard to fractional ownership. With high-quality property and verified tenants, carefully structured contracts, and long lease periods, fractional ownership paths the way for superior and stable returns over a period of time that aids the construction of a retirement portfolio.&nbsp;Thus, for middle-income investors looking to build a retirement portfolio, <a href="https://hbits.co/">fractional ownership</a> in commercial real estate may prove to be a far more efficient way to ensure that the silver years are comfortable and stress-free with regard to finances.

Examine the advantages of fractional ownership in commercial real estate over the NPS for retirement planning, including potential higher returns and more flexibility.

Best Investment for Retirement: NPS vs Fractional Ownership 

By the year 2050, 25% of the population in countries of OECD and nearly 20% of the global population would be over 65 years. However, there is enough empirical evidence to show that barely a quarter of the population globally or invest with retirement as a goal. India, which is expected to have 315&nbsp;

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Retirement Corpus Growth: Fractional Ownership vs NPS

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<h2 style="margin-left:0px;">Here is a million-dollar question for wealth managers and advisers.&nbsp; Which OTC (over-the-counter) product in the Real Estate market has the largest leverage and why?</h2> At hBits, we know the answer. The answer is Fractional Ownership in the high-quality asset class.&nbsp;OTC products are retail purchases that don’t need a prescription or license to sell.&nbsp; E.g., in the pharmaceutical industry, OTC products are medicines that don’t require prescriptions. You can buy them directly from medical shops. And they are subject to fewer regulations.&nbsp; Quite similarly, OTC products in Real Estate is a process of how securities are traded via wealth managers without the supervision of a central exchange or third party. Mutual funds, Life insurances, stocks, commodities, and currencies are traditional OTC products.&nbsp;The benefit is that the trading of OTC products is considered more transparent, while at the same time keeping the trade price down.&nbsp; For any wealth manager, Fractional Ownership is a no-sweat decision. It is a decentralized over-the-counter decentralized product that can be sold between two parties without the friction of the exchange market. All that with fewer regulations.&nbsp;Fractional Ownership is a win-win for everyone.&nbsp;<h2 style="margin-left:0px;">What is this article about?</h2>In this article, we are going to compare traditional OTC finance products with hBits’ Fractional Ownership system. We will also go in-depth about the drawbacks and advantages of investing in OTC products, and how to overcome the relevant risks.&nbsp;We will also share how new-age <a href="https://www.hbits.co/">Fractional Ownership in the Real Estate</a> Distribution industry has been changing the financial market.<h4 style="margin-left:0px;">&nbsp;</h4><h2 style="margin-left:0px;">Introduction</h2>Andrew Carnegie famously said that over 90 percent of the world’s millionaires have earned their wealth from investing in real estate. The statistics are clear. The straightest way to a profitable investment is Real Estate.&nbsp;Similar to the American dream, there is the Indian dream where anyone regardless of their background, can attain their definition of success in society. Indian dream is about upward mobility for everyone. And one ideally achieves it through risk-taking and hard work. At hBits, we have redefined the risk-taking and hard work behind the Indian dream. Here, we have developed an ecosystem through which people can invest in high-value properties with guaranteed high returns.<h4 style="margin-left:0px;">&nbsp;</h4><h2 style="margin-left:0px;">Here is how hBits can help</h2>Traditional property investments always have by-standing risks of vacancy and non-appreciation of rent, especially given the current pandemic.&nbsp;hBits acknowledges that the affordability of property has gone out of reach for many of us, and hence we bring the opportunity to everyone to live the Indian dream and therefore get on to the ladder of high investment returns.&nbsp;At hBits, we enable our clientele to buy a portion of a property with which they receive all the benefits of owning Real Estate without the requirement of huge upfront capital.&nbsp; Let’s compare it to the other products in the market, where selling products needs convincing and usually where the future of the product is uncertain. For say, under-construction properties where what is promised is rarely played in the future.&nbsp;Due to this, the property suffers. The middle man suffers, and most importantly, investors suffer.&nbsp; In our Fractional Ownership system, the assets are thoroughly checked to bring conformity to their quality, quantity, and identity. They are also free from traditional limitations.&nbsp;For example, contracts involving OTC products between two parties can handle large allocations of assets.&nbsp;<h2 style="margin-left:0px;">How can you benefit from Fractional Ownership?</h2>At the moment, fractional property investment is the best route the market knows to diversify one’s portfolio. And that happens by adding real estate property.&nbsp;Our online platform helps investors to hold a proportional entitlement to high-value properties with staggeringly more returns compared to traditional investment products. The average annual return of fractional Ownership over the years is about 11 percent.&nbsp;Fractional Ownership also helps in building a deposit. It consequentially solves the problem around estate investment affordability while at the same time promising long-term rentals.<h4 style="margin-left:0px;">&nbsp;</h4><h2 style="margin-left:0px;">Advantages of Investing with hBits’ Fractional Ownership System</h2>There are many reasons why Fractional Ownership works and why it is a no-brainer for wealth managers and advisors. Here are a few of my favorite reasons:<ol><li>The smaller businesses and individuals do not have qualifying exchange listing requirements or capital, but with hBits, they can still invest in <a href="https://hbits.co/properties">commercial properties</a> with high returns.</li><li>The administrative costs are tremendously low compared to the other investment options for investors.</li><li>It opens up the gates for new investment avenues and markets.</li><li>The online platform ensures that you do not have the limitation of being present at the physical location.</li><li>Another benefit is the diversification potential of Fractional Ownership, which provides a higher return per unit of risk.</li></ol><h4 style="margin-left:0px;">&nbsp;</h4><h2 style="margin-left:0px;">What are my exit options with Fractional Ownership?</h2>Compared to traditional investing, where the investors are blocked for a minimum period, Fractional Ownership on hBits has a much smoother exit option.&nbsp;You can sell your assets at any point to any interested buyer in or out of the platform. We also provide property listing within the platform where you can post your properties for interested buyers.<h2 style="margin-left:0px;"> We can learn from History</h2> About 50 years ago, when people collectively bought the idea of investing in Mutual Funds, it bloomed like a Marigold flower on a hot summer day.&nbsp;Put simply, Fractional Ownership is Mutual Funds of 2020.<h4 style="margin-left:0px;">&nbsp;</h4><h2 style="margin-left:0px;">What’s the least I can invest in fractional Ownership?</h2>hBits offer small token sizes starting from 25 lakhs. We charge 1% on the investment and promise at least 10% capital appreciation per year over our most properties. We also charge 1% as an annual property management charge.&nbsp;At hBits, we believe in transparency and provide a clear account of the property tax and charge fee. We account for all fees and taxes before you sign up for any investment. And of course, the deal comes without any hidden fee.&nbsp;At hBits, we believe in transparency and provide a clear account of the property tax and charge fee. We account for all fees and taxes before you sign up for any investment. And of course, the deal comes without any hidden fee. This profitable system of fractional Ownership has been prevalent in the west and has been consistently picking the pace in India. As per our research, we are expecting up to 30% growth in the demand for commercial properties in 2021.&nbsp;hBits promises a safe ecosystem, where you are given the most effective investment equation available in the Indian Real Estate distribution industry. At hBits, we are encapsulating the most promising OTC product in real estate for our users, Fractional Ownership. Let’s all get to the Indian Dream. As one of India’s top Fractional Ownership firms, we are committed to solving difficult problems around property investments. This is not just limited to simplifying the process but also successfully managing the risk of investment and answering difficult questions.&nbsp; In case you have a question for us, kindly <a href="https://hbits.co/contact-us">Contact us</a>. We’ll get back to you at our earliest.

Find out why hBits' Fractional Ownership is the best over-the-counter real estate offering. Invest with confidence and take advantage of transparent investing options.

Why Fractional Ownership is the Best OTC Real Estate | hBits

Here is a million-dollar question for wealth managers and advisers. Which OTC (over-the-counter) product in the Real Estate market has the largest leverage and why? At hBits, we know the answer. The answer is Fractional Ownership in the high-quality asset…

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Fractional Ownership over the counter in Real Estate

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You have no doubt heard the idiom, ‘don’t put all your eggs in one basket’. When it comes to investment, this is THE golden rule. The smartest investors ensure portfolio diversification of their investment, which simply means spreading your capital across different forms of investments and financial assets. If you don’t diversify your investments, two things can end up happening — (A) you end up investing only in assets like bank deposits, which will keep your money safe and stable, but give very low and slow returns. (B) You invest too heavily in volatile instruments such as stocks in the hope of making quick money but expose yourself to the risk of losing your capital as well.&nbsp;<h2 style="margin-left:0px;">Stability And Returns</h2>What if you could add an asset that is not only low-risk but also yields high returns? It may sound too good to be true, but that’s exactly what hBits is offering to do for your portfolio through fractional ownership of a <a href="https://hbits.co/preleased-property">pre-leased commercial property</a>: lend balance and stability, along with handsome profits. Try and imagine your investment portfolio as a see-saw (refer diagram below).&nbsp;On one side, you’ve invested in, let’s say, the stock market, an infamously volatile domain of investment. This has the potential for high returns, sure, but carries the immense risk of losing your money as well. Any major disaster, political turmoil, or even a pandemic — like the one we’re going through right now — can result in a fall in the market. Indian equity markets fell to their lowest in three years after the Covid-19 outbreak began in India. News outlets have reported that on a price-book value basis, valuations hit an 18-year low during this pandemic, touching the same levels as they had during the 2008 global financial crisis. The Nifty, which yielded a one-year return of 15% last year, has now dropped to just 5% this year. So if one invested ₹10 lakhs in Nifty last year, hoping to make 15% returns or ₹1.5 lakhs each year, during the pandemic those returns dropped to about ₹50,000 for the year. There are others who were far more unlucky and ended up losing chunks of their capital as well, with some share values plummeting.&nbsp;On another side, you have fixed-income assets such as fixed deposits, government bonds, insurance plans, etc. These provide the stability of steady income, no matter the condition of the market, but thanks to the risk-reward trade-off, the returns are on the lower end. Fixed deposits are currently offering paltry interest rates between 4% and 6%. So a ₹10 lakh FD would yield downwards of ₹60,000. Even with all the stability, these bank deposits are said to offer, they are not immune to the effects of this pandemic either — interest rates continue to fall at Indian banks this year, which means returns will dry up as well.&nbsp;In our investment portfolio see-saw, investing too much on the safer right-hand side will result in stability, but will also suppress income. On the other hand, investing too heavily in the riskier left-hand side could topple the see-saw altogether. But now, let’s take a look at the middle section that is balancing both sides — fractional ownership of a pre-leased commercial asset. This is the unicorn asset that offers both high returns and low risk.&nbsp;<h2 style="margin-left:0px;">A step above regular commercial property</h2>hBits offers only the most premium Grade A commercial properties that are pre-leased.Why are these two points highlighted? Because they are what ensures the win-win combination of high returns and low risk.&nbsp;The reason hBits picks up only the best Grade A property is because they fetch the highest rental returns, clocking in about 6%-12% per annum. At these rates, an investment of ₹10 lakhs could fetch you anywhere between ₹60,000 - ₹1.2 lakhs per annum. These properties are usually rented by MNCs, banks, IT offices, and other entities with deep pockets, who can afford to pay premium rent for the premium space.&nbsp;Now that we’ve explained how returns are high, let’s look at the low-risk factor. Commercial real estate has always been a high-return investment but was traditionally thought of as a high-risk area as well, for two reasons: the big ticket or huge capital required, and the risk of losing a huge amount of income in case of a vacancy.&nbsp;hBits has addressed the first point through <a href="https://hbits.co/">fractional ownership</a>; for the first time, anybody can choose to <a href="https://hbits.co/commercial-real-estate-investment">invest in Grade A commercial property</a> with even ₹10 lakhs in hand. How hBits makes this happen is by bringing together several investors, and helping them pool their smaller investments to then buy multi-crore office properties in premium business districts. This way, you can be a co-owner of a multi-crore property without shelling out crores of Rupees. By sharing ownership with others, one also ends up dividing any risk from the asset. At the same time, the rental returns, while shared among many, still make quite a good profit for the investor.&nbsp;As for the second risk factor, again, hBits only offers pre-leased assets, which means that buyers don’t have to waste time and money looking for a tenant while losing out on precious rental income. There is added stability from the fact that premium commercial real estate is usually leased out with a lock-in period ranging from three years to five or even ten years. The tenants, which are usually large corporations, usually do not change their address frequently, and so, are likely to extend the lease further. This means that investors who bought properties through hBits have continued to enjoy high rental returns even through this pandemic, earning more than they would through bank deposits and even the stock market.&nbsp;<h2 style="margin-left:0px;">How can this improve diversification?</h2>Unaffected by bear markets:&nbsp;Property returns have a very low correlation with other assets and financial markets such as stocks, so a crash in the stock market would not affect your rental return.&nbsp;Maintain high yield: By using commercial property as the stabilizing, fixed-income portion of your portfolio, you can reduce the risk without reducing your income, which is not possible with low-yield instruments like FDs.&nbsp;Tangible asset:&nbsp;One of the best things about investing in property is that it is a tangible asset, which means it’s easier to relate to and understand than, say, stocks. It also gives investors a sense of security and control over their asset, since they can touch it, feel it, and can access it readily, which is quite different from a paper asset like an FD.&nbsp;Capital appreciation:&nbsp;Another winning point about commercial real estate is its potential for growth in value. To some extent, this is in the investor's control as well, since they can increase value directly by improving amenities. Added to that, is the assurance of steady capital appreciation thanks to the premium location and build selected by experts at hBits.&nbsp;Hedge against inflation:&nbsp;hBits ensures a clause in the rental agreement that will escalate rental income by 15% every three years. This protects your income by setting off future inflation. In this manner, rental income increases with inflation, as opposed to falling interest rates in bank deposits and bonds.&nbsp;Monthly income, credited immediately:&nbsp;Unlike many other forms of investment, where one is required to cash out before accessing their returns, your rent will be credited straight to your bank account month after month by hBits.&nbsp;<h2 style="margin-left:0px;">Keep the see-saw stable</h2>As hBits’ Director of Business Development and Investments, Mr. Ankush Ahuja, says, “Fractional ownership of commercial property is a game-changer and unlike any other financial investment. It’s more affordable than regular commercial real estate, safer than the stock market, and more profitable than bank deposits and bonds. In fact, it’s easier to understand and manage too, if you invest through a platform such as hBits, which does all the work and research and maintenance for you, while you can sit back and enjoy the profits.”&nbsp;Make this the fulcrum, or center of your investment portfolio to offset risks from more volatile assets, while simultaneously maintaining a high overall yield.

Look into portfolio diversification with fractional ownership in commercial real estate, a key strategy to enhance your investment portfolio.

How to Diversify Your Portfolio with Commercial Real Estate

You have no doubt heard the idiom, ‘don’t put all your eggs in one basket’. When it comes to investment, this is THE golden rule. The smartest investors ensure portfolio diversification of their investment , which simply means spreading your…

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Portfolio Diversification | How to invest like an expert?

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Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth. – Theodore Roosevelt&nbsp;Rent from real estate is a tried and tested way to generate passive income for investors. It helps add to wealth while simultaneously creating a safety net to hedge against income uncertainties. Along with stocks, bonds, and gold, real estate is a popular asset class known to generate stable, long-term returns. It also functions as a source of dual income (through monthly rent and capital appreciation) and is relatively immune to inflationary pressures making it one of the major means of wealth creation for societies over the ages.&nbsp;In India, real estate has traditionally been a prime investment vehicle owing to a strong preference for tangible assets. Up until now, most of this investment has been channelled into residential real estate. But the boom in the commercial realty sector which is currently underway, coupled with a slowdown in the housing market, present real estate investors with a unique opportunity to explore the former avenue.&nbsp;<h2 style="margin-left:0px;">Why opt for&nbsp;commercial real estate?</h2>The driving motive of any investment is the maximization of returns. Currently, the commercial realty sector is providing much higher returns than the housing sector which has been struggling for the past six years. When it comes to real estate, a key figure to consider is ‘rental yields’ which expresses the annual income from your asset as a percentage of its total value to indicate your ROI. In the current scenario, the rental yield from commercial properties is anywhere in the 8-10% range while the same for the housing sector is 3-4%. This proves it is much more profitable to invest in commercial property compared to residential real estate in the present economic climate.&nbsp;<h2 style="margin-left:0px;">How to maximize your rental yields</h2>Once you are committed to <a href="https://hbits.co/commercial-real-estate-investment">investing in commercial real estate</a>, the next step is to look out for a suitable property. Scouting for the property is arguably the most crucial step in the entire process since the fate of your investment hinges on this singular factor. A good property in a great location is the best bet to help you maximize your ROI. Below we look at seven key factors to help you select a good&nbsp;<a href="https://hbits.co/properties">property with the best rental yield.</a>&nbsp;<ul style="list-style-type:disc;"><li>Location: Location is the single most important factor that determines your ROI including factors like rental yield and asset appreciation. You should ideally choose a place that has high visibility, good infrastructure including roads and public transport, is located close to a commercial hub, can ensure steady footfalls, and so on. The objective is to find a place that is commercially viable. Seek out a locality where vacancy rates are below 5% as high turnovers often lead to a moderation in rental income.</li><li>Property size: Large properties tend to be safe investments, attract better-quality tenants, and lead to higher rental yields. This is especially true of premium Grade A properties which provide investors with an excellent option to diversify their portfolio. The main drawback relates to their high cost of purchase. But the fragmented ownership model has been able to solve this problem by enabling the purchase of a small piece of a much larger property at a relatively low ticket size.</li><li>Quality of the building: Good quality buildings have an edge over their competitors as it is easier to find tenants. They also command higher rents and attract quality occupants. Real estate services company CBRE defines Grade A properties as those whose development includes “an open plan office with large size floor plates, adequate ceiling height, 24×7 power back-up, supply of telephone lines, infrastructure for access to the internet, central air-conditioning, spacious and well-decorated lobbies, circulation areas, good lift services, sufficient parking facilities” and “centralized building management and security systems.” These properties generate more rental income, display greater capital appreciation, and are easier to liquidate in the market.</li><li>Regulatory requirements: Be certain to check whether all the paperwork is in place. Commercial buildings in India must comply with a large number of rules and regulations including zoning rules, fire and safety requirements, and so on. Remember also to ensure that all the legal formalities are properly completed. You don’t want to be stuck with a bad investment because you did not do your due diligence.</li><li>Quality of tenants: Be selective about your tenants. If you are investing in a <a href="https://hbits.co/preleased-property">pre-leased property</a>, opt for a unit that has been taken up by a tenant with positive cash flow or a strong balance sheet and a reputation for paying their dues on time. Remember to take a good look at the lease agreement to understand factors like lease duration, termination process, frequency of rent escalation, lock-in period, etc. These are things that will directly impact your rental yield.</li><li>Growth prospects: Are rents in the area likely to rise or are they already at saturation level? What are the new offices, commercial hubs, and infrastructure projects coming up nearby that will value-add to the location your property is situated? These are some of the questions to consider while finalizing your choice of commercial real estate.</li><li>Understanding the property market: Finally, try and get a grasp of the property market both at the macro and micro levels. Many different things influence the realty market in a city including economic growth, business sentiment, pace of commercial activity, government policies, access to skilled labour, condition of infrastructure, building byelaws, etc. Choose your property after considering all these different factors to determine the best option.</li></ul>&nbsp;<h2 style="margin-left:0px;">Lowering the entry barrier</h2>Despite the lure of investing in commercial real estate, most people have been unable to participate in the sector due to an extremely high barrier of entry. But the good news is that recent innovations in the field of finance and technology have put purchasing commercial property within the easy grasp of common investors. Two of the major developments in this regard are the launch of Real Estate Investment Trusts (REITs) and fragmented ownership platforms both of which allow you to benefit from the commercial property boom albeit through different models. The net result is that many more people can enjoy the fruits of the growth of this rapidly expanding sector.

Make wise commercial real estate investments to create passive income. Find out how your returns are affected by location, quality of property, and tenants.

Key to Passive Income: Commercial Real Estate | hBits

Rent from real estate is a tried and tested way to generate passive income for investors. It helps add to wealth while simultaneously creating a safety net to hedge against income uncertainties.

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Commercial Real Estate: Maximizing Rental Yields

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Has Covid-19 changed the real estate market forever? And should you be changing your investment strategy during this post-pandemic era? You are not alone in asking these questions; hundreds of articles can already be found on the Internet on this subject. But before you make any investment decisions based on Covid-19, here are the REAL some important questions we must understand: ‘Is Covid-19 the only reason real estate has changed so much?’ And ‘What will the property market look like in the future, beyond the pandemic?”&nbsp;There’s no doubt that the Covid-19 pandemic has hit the real estate market hard, particularly residential properties. Thanks to the pandemic, residential sale values fell by 7% in 2020, while demand declined by 25% due to the mass reverse migration out of metro cities. While the slowdown in 2020 has not gone unnoticed by anyone, not everybody has spotted the fact that Covid-19 is not entirely to blame — in reality, residential realty has been falling rapidly over the past decade. As of Q1 2023, the unsold inventories across seven cities (Mumbai, Chennai, Hyderabad, Bengaluru, Kolkata, Delhi NCR and Pune) have increased by 2.8% Q-o-Q basis.&nbsp;<h2>From dream investment to nightmare</h2>Even as the sun sets on residential property — for a few years, at least — it is rising rapidly in commercial real estate (CRE) in India. While residential realty has been falling since the global financial crisis of 2007-08, commercial real estate has been growing year after year in India. Last year, gross leasing of office space increased by 25% to an all-time high of 61.6 million sq ft, according to property consultant CBRE.&nbsp;&nbsp;If we crunch these numbers, this is what it would give us: A ₹20 lakh apartment would have given a return of ₹4.6 lakhs in 2011. Today, the same house will give a mere ₹56,000 for the entire year. Once you deduct the maintenance charges and property tax, and also account for inflation, very little profit would remain.&nbsp;Residential property was already plagued by a slowdown in the past few five years, following the demonetization, the implementation of the Real Estate [Regulation and Development] Act (RERA), and the Goods and Services Tax (GST). What the pandemic has done though, is make the problem worse: people migrated back to their hometowns, leaving property owners without steady rental income; new projects were stalled due to lockdown and the ensuing manpower shortage; developers were left with a major cash crunch and liquidity issues and as a result, many constructions are delayed.&nbsp;Data shows that as many as 1,665 RERA-registered housing projects across India have been delayed by over five years. Property consultant Anarock projected that nearly 4.66 lakh under-construction homes scheduled for completion in 2020 could be delayed, while 4.12 lakh homes scheduled for handover in 2021 might not meet the deadline either. The number one reason for these delays year after year — aside from Covid-19 — is that many developers have over-leveraged themselves and as a result, have been facing liquidity issues. But this has had a major impact on buyer sentiment; customers who once considered property to be a safe bet, are now experiencing discomfort and loss of trust as their money is stuck in delayed projects.&nbsp;<h2>Best bet: Fractional ownership of a pre-leased commercial asset</h2>Even as the sun sets on residential property — for a few years, at least — it is rising rapidly in commercial real estate (CRE) in India. While residential realty has been falling since the global financial crisis of 2007-08, commercial real estate has been growing year after year in India. Last year, gross leasing of office space increased by 25% to an all-time high of 61.6 million sq ft, according to property consultant CBRE.&nbsp;<a href="https://hbits.co/properties">Commercial property</a> has long been considered an investment only for the rich, due to the high entry barrier. But small-ticket investors are quickly picking up interest in this high-return asset class thanks to the concept of fractional ownership. Instead of one wealthy investor pouring in, say, ₹100 multiple crores for a Grade A commercial property, fractional ownership allows 10 people to make a more affordable investment of ₹ 25 lakhs each, sharing the ownership and dividing the risk as well. This is what hBits specializes in, offering retail investors the most profitable, <a href="https://hbits.co/preleased-property">premium properties that are pre-leased</a> and high in demand.&nbsp;<h2>Indian realty on the rise</h2>While commercial realty witnessed a slight slowdown during the early months of the lockdown this year, it quickly picked up the pace again in Q3. As the economy reopened, net absorption increased by 63%, while new completions grew by 59% when compared to the preceding quarter. India’s net absorption number across the top seven cities for the for 2022 was recorded at 38.25 mn sq ft, marking a post-COVID high— In fact, during the pandemic, premium commercial real estate&nbsp; &nbsp;comprising Grade A office spaces that hBits specializes in — was the only property category that did not take a huge hit during the slowdown, particularly in India.&nbsp;<h2>Read: Pandemic-proof Real Estate &amp; Financial investment post-Covid-19: Fractional ownership</h2>The fact that India’s commercial property market continues to thrive during the pandemic is something that has drawn the attention of many international and <a href="https://hbits.co/nri-real-estate-investment">NRI investors</a>, with other countries not faring as well. The CBRE recently reported that average rents in the US commercial sector are expected to fall by 6%, with a similar drop of 3%-5% in rental returns in major European cities such as London, Dublin, and Stockholm as well. On the other hand, in the same report, CBRE states that office leasing continues to grow in India due to its strong outsourcing sector. This is the reason why US and EMEA-based companies account for more than 63% of office space leased in India (100 million sq ft and 40 million sq. ft respectively).&nbsp;In Dubai, rent has dropped by as much as 10%-20% year on year, depending on location. Compared to this, major cities in India have shown positive growth of 5%-12% in commercial real estate in the last few years.&nbsp;<h2>How fractional ownership is different from REITs</h2>Demand for Indian commercial real estate is also evident in the recent over-subscription of India’s first REITs (Real Estate Investment Trusts), raising ₹4,750 crores (US$ 679.64 million). While this robust response clearly demonstrated to investors — domestic and international — that the Indian commercial property market is ready for bigger and more players, REITs have their own disadvantages as well. The concept of REITs is similar to that of mutual funds, pooling money from many investors to purchase or finance income-producing properties, including both residential and commercial realty. The returns paid to investors come from the monthly rents, so there is a steady flow of income.&nbsp;However, unlike fractional ownership, REITs do not offer much in the way of capital appreciation. And similar to mutual funds, REIT investors cannot choose the particular properties that their money is poured into. Fractional ownership, on the other hand, provides complete control of both, asset selection and diversification. Over time as well, investors gain from both regular rental yield, as well as study capital appreciation.&nbsp;hBits ensures that investors enjoy complete access and transparency when it comes to their properties. All the information is live and accessible at the click of a button on the hBits digital platform. Not only can investors take virtual tours of the property, but they can also securely buy and sell their share of the property on the same platform. In addition, hBits only offers the best Grade A commercial properties that are completed and pre-leased, reducing the risk but ensuring high returns, unlike REITs, which invest in all kinds of properties. With this win-win formula of low risk and high returns, fractional ownership can be said to be similar to debt instruments and term insurance, while REIT is most similar to mutual funds, which can offer good returns but can also be more volatile.&nbsp;<h2>Changing the future of realty</h2>In conclusion, the Indian real estate market is changing rapidly, regardless of the Covid-19 pandemic. Over the next decade, as caution in residential real estate growing in the market values stagnate, more and more individual investors will see the benefit in the growing commercial real estate sector. hBits is at the forefront of this revolution, giving investors the convenience of <a href="https://hbits.co/">fractional ownership</a> of pre-leased commercial assets.

Covid-19 shifted real estate focus to commercial assets, where fractional ownership now offers stability and better returns in the post-pandemic economy.

Commercial Real Estate Investment Trends Post-Covid-19 | hBits

Make informed real estate investments with hBits. Stay ahead of the curve and learn what to consider for a profitable future investment. Read now!

Reality of Realty has Changed | How to Invest in the Future

Has Covid-19 changed the real estate market forever? And should you be changing your investment strategy during this pandemic? Here are the REAL some important questions we must understand:

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Reality Of Realty Has Changed | How To Invest In The Future

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Throughout history, owning real estate has been one of the best vehicles for wealth creation. In fact, canny real estate investments have generated the highest number of millionaires and billionaires in the past two centuries. These investments may take the form of ownership of land, buildings, infrastructure facilities such as railroads and ports, and other permanent structures. Investment in real estate yields two kinds of passive income – the gradual appreciation of the property value, and the periodic income from rentals and other such agreements. Moreover, such investments offer a host of tax advantages.&nbsp;Real estate investments tend to be capital-intensive and long-term; they require a hefty initial outlay and are dependent on cash flows. Each property has a unique set of pros and cons and tends to be illiquid in general. Until after Independence, such investments were restricted to the uber-rich, who could absorb such inherent risks. However, since then, several new investment avenues have opened for those interested and involve the pooling of resources from multiple individuals to acquire property and sharing the returns among them. Let’s look at some of the best real estate investment and ownership opportunities.&nbsp;<h2>Real Estate Investment Trusts</h2>Real Estate Investment Trusts (REITs)&nbsp;are ideal for those looking to invest in real estate while avoiding the attendant high costs of maintenance. They allow individuals to diversify their portfolios without holding physical assets. Similar to mutual funds, REITs invite a number of individuals to pool their money together, which is then applied to acquiring and maintaining certain properties. Investment and management decisions are taken by experienced asset managers. The returns are distributed among the investors. The investor can liquidate his position at any time by selling his units of the REIT. REITs offer transparency, and liquidity and do not charge investors unduly high fees. The first REIT in India, Embassy Office Parks REIT, got listed on 1st April 2019.&nbsp;<h2>Real Estate Exchange Traded Funds</h2>Real estate ETFs invest in the real estate market, primarily in REITs. Again, they are a great option if diversification into real estate is the aim. ETFs have an overall low cost of ownership since they are managed passively by a trusted company. Real estate ETFs may invest in shares issued by REITs which in turn purchase commercial buildings, office spaces, hotels, and sometimes even residential condos. These funds are not yet available in India. There are several real estate ETFs in the market worldwide and an investor ought to properly research and consider all possibilities.&nbsp;<h2>Direct ownership of Real Estate</h2>Direct ownership of real estate requires a hefty investment amount, as well as in-depth knowledge of the local real estate sector – the location, upcoming infrastructure projects, etc., all of which may potentially increase or decrease the value of the investment. Direct ownership may be categorized into ownership of commercial or residential real estate. Among the two, <a href="https://hbits.co/properties">commercial property</a> has been known to provide both higher and steadier returns over the same period of time. Here, returns refer to a combination of annual lease rent as well as the capital appreciation of the asset per annum. On an average, residential properties attract two to three percent returns per annum, while in the case of commercial properties up to twelve to twenty percent returns per annum are possible. In India, the prime cities to invest in commercial real estate are Mumbai, Pune, Chennai, Hyderabad, and Bangalore where the IT industry is predominant and constantly demanding more office spaces.&nbsp;<h2>Fractional Ownership of&nbsp;Commercial Real Estate</h2>This is an attractive option for individuals are branching out into real estate for the first time. The first of its kind in India, this route allows for ownership of a hard asset for as low as Rs. 10 lakhs. The individual has total control over the type of properties he may wish to add to his portfolio. Location, type, and value are all valid criteria. By creating a market for a share in a property, such options allow for a seamless entry and exit into the real estate sector. The property manager looks after the maintenance of the asset as well as collects rentals from the tenants. The individual can make informed decisions based on real-time data generated. Moreover, the property's worth is evaluated frequently. Monthly rentals from the portfolio of real estate holdings are secured which ensures passive income while eliminating risks and hassles.&nbsp;Real estate can prove to be a tricky territory for the uninitiated. But with experienced and skilled management, they can turn into an opportunity like none other. <a href="https://hbits.co/">Fractional ownership</a> of Real Estate is a fabulous option to diversify one’s portfolio, maximize income and reduce risks. Investors are encouraged to make an informed choice and venture into fractional ownership of the real estate to realize attractive yields.

To secure passive income and accomplish financial progress, learn about the best real estate investment choices, such as fractional ownership, ETFs, and REITs.

Best Ways to Own Real Estate in India | hBits

Take a look at some of the best real estate investment and ownership opportunities that can earn maximum returns.

Take A Look At The Best Options For Owning Real Estate

Take a look at some of the best real estate investment and ownership opportunities that can earn maximum returns.

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What are the Best Options for Owning Real Estate?

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Commercial property has become one of the hottest investment assets for NRIs in the recent past. A rapidly developing economy, growing urbanization, the depreciation of the rupee, the establishment of RERA, which increases transparency in the realty sector, attractive rental yields, and good value appreciation potential are some of the factors that are driving this trend.&nbsp;With government rules now allowing NRIs to freely purchase property except farmland and plantation land, the real estate sector has witnessed considerable wealth inflow from the Indian diaspora. A report by real estate consulting firm 360 Realtors notes that NRI investments in the sector doubled from $5 billion in 2014 to $10.2 billion in 2018. Meanwhile, a consumer sentiment survey by ANAROCK for the first half of 2019 reveals a special preference for real estate among NRIs, with 63% of them opting for property over other assets.&nbsp;<h2 style="margin-left:0px;">Residential real estate versus&nbsp;commercial real estate</h2>The residential real estate sector in India is currently undergoing a slowdown. In this scenario, commercial real estate has emerged as a winning&nbsp;<a href="https://hbits.co/nri-real-estate-investment">investment option for NRIs</a>, promising returns in the range of 12-20% (contractual yield + appreciation potential) annually. The high demand for premium office spaces in India is also prompting foreign investors such as Blackstone, Brookfield, and Xander to enter the commercial real estate space. A number of high-value transactions running into thousands of crores of rupees completed in the past year attest to the bullish outlook in the market.&nbsp;<h2 style="margin-left:0px;">Investing in commercial real estate: The brass tacks</h2>NRIs must be extremely careful while purchasing commercial real estate in India. It is easy to lose your way in the labyrinth of paperwork associated with a property purchase in this country. There are many factors to keep in mind in this regard. Three important ones are:&nbsp;<ol><li>Location: Choose a location where there is a high demand for office space. Failing on this front would mean difficulty in getting good tenants and low rental yields. Location is also important in determining your interest rate from banks.</li><li>Due diligence: Ensure that all papers, permissions, and approvals are in order. It is a good idea to check the credentials of the developer, construction quality, access to transport and infrastructure, and so on.</li><li>Income and expenditure: Closely examine the cash flows, management costs, property tax, cost of insurance, lock-in period, capital appreciation, and so on.</li></ol>&nbsp;<h2 style="margin-left:0px;">Real estate ownership made easy</h2>The hBits fractional real estate ownership platform takes care of many of these problems. With its help, you can become a partial owner of profitable&nbsp;<a href="https://hbits.co/properties">commercial real estate properties</a> across India at a comparatively small ticket size. What’s more, it enables you to choose the location, size, tenants, developer, and even the exact property.&nbsp;Above all, it saves precious time and money by relieving owners of the need to conduct research and due diligence. Our properties are listed only after careful vetting by our in-house experts. Once you have selected the property, our transaction experts will guide you through the purchase process and help you finish the paperwork. And you can do all this online without stepping out of the comfort of your home!

Using fractional platforms, NRIs can invest in commercial real estate in India and benefit from excellent returns, transparency, and hassle-free ownership.

Why NRIs Should Invest in Indian Commercial Real Estate

Commercial property has become one of the hottest investment assets for NRIs in the recent past. A rapidly developing economy, growing urbanization, the depreciation of the rupee, the establishment of RERA, which increases transparency in the realty sector, attractive rental yields, and&nbsp;

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