PropTech platforms boost retail investments in commercial real estate


For official investors and others, the Indian commercial real estate market has turned into a lucrative business. Several pro-investor policies and infrastructure expansions appear to be helping the sector’s massive growth.

The stakeholders’ gushes were weakened during the early stages of the pandemic. Despite this, the sector began to flourish when movement restrictions and business activity were eased. Furthermore, the uncertainty posed by the second wave of the pandemic put the industry on hold for the next quarter. However, due to the sector’s development drivers, investors’ ongoing interest will soon break the inertia.

Despite the short-term interruptions caused by the pandemic’s aggravating effects, India’s commercial real estate sector is on track to rebound quickly.

The integration of new-age technologies into the commercial real estate sector is driving the sector’s growth. The traditional real estate business is being disrupted by a collection of technology-driven offerings and services provided by creative PropTech platforms.

Furthermore, the rise of prop-tech platforms is attracting unprecedented investment from investors seeking safe growth in the face of the pandemic.

Investing in a premium commercial space was previously unfeasible due to the high purchase price. However, with the advent of fractional ownership, a larger pool of institutional investors, individual investors, and fractional investors can now buy A-Grade property together.

In India, fractional ownership is gaining popularity. It’s opening up a slew of new ways for youngsters to get involved in new ventures at a fraction of the expense. It functions as a platform for individuals to band together to purchase a commercial asset, enjoy the yield it creates, and then sell their share at any time to profit from capital gains. As a result, the growing trend of fractional ownership is expected to have a substantial impact on the Indian commercial real estate market.

Many investors find it difficult to walk on A-grade commercial properties because they lack the years of experience and in-depth understanding required to select a profitable commercial asset. As a result, Fractional Ownership is the inevitable change coming to the commercial real estate market as a solution to having specialized knowledge, the correct connections, and access to a large number of funds.

Furthermore, PropTech platforms that offer fractional ownership completely sanitize each asset and use big data analytics, predictive algorithms, and conservative financial models to give fractional owners a safe investment option.

As a result, commercial investors benefit from lower risk and higher returns through consistent rental yield and capital appreciation. Commercial real estate investors are always looking for new options to help them build wealth. This comes with investment diversity, which also balances risks and benefits in their assets.

Prop-tech, with the incorporation of technology, plays a critical role in diversifying investors’ portfolios across asset classes and regions. This allows investors to gain access to transparent reporting while focusing solely on maximizing their returns. Furthermore, investors seeking a safe investment opportunity are taking advantage of real-time asset performance, rewards, and financial models that work in their favor.

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