Pune: Fractional ownership platform 'RealX' completed a landmark deal involving commercial land in Ayodhya. The transaction saw participation from 57 investors who collectively invested amounts ranging from ₹50,000 to ₹25 lakhs, acquiring proportionate ownership rights. Fundbezzie played a crucial role as a strategic partner in this venture.
Fractional ownership alleviates the high costs associated with owning expensive assets such as real estate, yachts, and private jets. By distributing these costs among multiple investors, this model allows broader access to high-value assets without the full financial burden, promoting diversification and risk mitigation.
Manish Kumar, Cofounder and CEO of RealX, stated, "Ayodhya is rapidly appreciating in value, supported by central and state government initiatives. Securing prime property here was challenging, but it presented a perfect case for fractional ownership, turning it into a participative investment story.”
RealX distinguishes itself by offering direct property rights to investors, bypassing the traditional Special Purpose Vehicle (SPV) route. Investors can choose between Registered Co-ownership and property tokens (on blockchain). The former grants direct co-ownership, while the latter provides legal beneficial rights within the token through a signed legal note.
Initially, many investors were hesitant about digital transactions in Uttar Pradesh, especially in fractional ownership mode. “We took on the challenge and completed the transaction on time, even subscribing to a portion ourselves to ensure commitment. Post-registration, our contribution is now available for sale on the platform, enhancing overall confidence,” Kumar added.
Investor Ajay Setia shared his positive experience: “Investing in Ayodhya seemed impossible due to high costs. With RealX, the entry barrier was lowered to ₹50,000. The credibility of the founders and their support made the process seamless.”
Tokenization of real-world assets, emerging as a promising concept, has gained traction post the global regulatory clampdown on cryptocurrencies. RealX leads the way by delivering tokenized sales in the Ayodhya property deal.
Neera Inamdar, Cofounder and COO of RealX, remarked, "It's noteworthy that major investors preferred property tokens. Their choice underscores the potential of digital assets."
The fractional ownership of real estate in India is growing rapidly, with the market expected to reach INR 4,500 billion by 2026. Currently, 200 million sq ft of Grade A office space is available for fractional ownership.
Deloitte estimates real estate tokenization, valued at $2.7 billion in 2022, could reach $1 trillion by 2030. The Boston Consulting Group projects that the total size of illiquid asset tokenization, including real estate, could hit $16 trillion by 2030.
In India, the real estate market is set to reach $1 trillion by 2030, with fractional ownership and tokenization gaining significant traction.
