Key Points
Today REITs are no longer alien to seasoned investors...
In the last five years, several online ventures called Fractional Ownership Platforms (FOPs) have come up, allowing HNIs and retail investors to participate in such real estate investments with minimum investments ranging between Rs. 10 lakhs and Rs. 25 lakhs...
Fractional ownership in real estate has been gaining popularity because it: (a) removes the traditional barriers associated with real estate investment - a requirement for high capital and risk appetite, (b) allows retail investors to participate in the investment, earn returns and avail the benefit of rising valuations of the real estate market, and (c) opens up a new asset class for investments, thus promoting greater diversification in investment portfolios...
Below we explain how the notified amendments are expected to benefit HNIs and retail investors investing via FOPs:. 1. FOPs operating SM REITs to now be regulated by SEBI..
However, as for existing FOPs which currently operate unregistered REIT structures, they can submit a migration plan to SEBI and also apply for registration irrespective of their size and number of investors.. 2. New investment criteria that make fractional ownership less risky..
You might be interested in
New REITs regulations by SEBI is a game changer: 7 ways how it can help fractional real estate investors
12, Mar, 24New REITs regulations: Here's a primer on how this much-needed transparency could benefit retail investors, as well as HNIs, looking to add the highest-graded commercial real estate to their portfolios using the Real Estate Investment Trusts route.
Sebi aims to enhance trust in REITs, InvITs
25, Aug, 23The regulator recently approved changes to the rules governing real estate and infrastructure investment trusts to make them more acceptable to investors
Comparing investment potential in Indian vs US real estate markets
14, Jan, 24The US real estate market is known for its stability, diverse geography, and transparent regulatory framework. On the other hand, the Indian real estate sector has significant growth potential but is characterized by regulatory complexities and occasional economic volatility. India, on the other hand, with its burgeoning middle class and urbanisation, presents significant growth potential in its real estate sector.
Real Estate Crowdfunding: A new avenue for investing
01, May, 23Real estate crowdfunding involves pooling together funds from multiple investors to invest in a real estate project.
Sebi notifies small and medium Real Estate Investment Trusts
10, Mar, 24The new regulations will be called Sebi (REIT) (Amendment) Regulations 2024, the notification said.
Sebi moots regulatory framework for fractional ownership platforms offering real estate
14, May, 23MSM REIT should have parties like a trustee, sponsor and investment manager with each such person being a separate and distinct entity.
Fractional ownership of property as investment tool to get boost from Sebi regulation: experts
27, Nov, 23India Business News: SEBI's decision to allow Small and Medium REITs will propel the growth of fractional ownership of rent-yielding real estate assets. Proptech platforms