In the wake of the pandemic, a noticeable surge in mobility and leisure travel has significantly propelled the mainstreaming of fractional ownership within India. While countries like the US, UK, and China—home to substantial concentrations of the world’s affluent—have long recognized sizable markets for fractional ownership, India’s market remained relatively minor until recently. However, the tides are quickly turning.
Fractional ownership facilitates investments in high-value assets such as real estate, private aircraft, and luxury yachts by allowing individuals to share ownership costs, thereby making expensive assets more financially accessible. Commonly referred to as co-ownership, this model permits multiple investors to reap the rewards of an asset’s appreciation and rental income.
A considerable portion of investments within this structure is now flowing into both residential and commercial real estate sectors through dedicated fractional ownership platforms. This innovative approach permits high-net-worth investors to access assets that are otherwise typically reserved for wealthier entities. The convenience this model offers helps owners sidestep the complications of sole ownership, which often include exorbitant costs, a lack of transparency, and various management challenges. Moreover, these fractionally owned properties usually come with proficient management of finances, property maintenance, and legal issues, promoting a hands-off investing experience that continues to stimulate the trend.
As Sravan Gupta, the co-founder and CEO of a fractional ownership firm, highlighted, each owner's check-in offers a personalized experience. To ensure a smooth process, Gupta suggests owners jot down specific preferences prior to their arrival. Various choices are available, ranging from the number of chilled beers to stock to selecting air fresheners for welcoming guests. Additionally, specialized staff and on-demand chefs further enhance this model's allure. Current figures from Knight Frank reveal that the fractional ownership market in India expanded by 65%, increasing from $5.4 billion in 2020 to an estimated $8.9 billion in 2025, marked by an annualized growth rate of 10.5%.
Many contributing factors shape this trend, according to Vimal Nadar, Senior Director and Head of Research at Colliers India. He noted, "the affordability of premium properties has drastically decreased, alongside evolving investment and lifestyle preferences and the rise of startups and investment platforms." The primary underlying assets include second homes, vacation properties, and commercial real estate, with significant activity in the second-home sector. More investors are making purchases in popular tourist destinations, such as Alibag, Lonavala, Goa, Kodagu, Rishikesh, and Shimla.
While the market shows robust growth, Amit Goyal, MD of Sotheby’s International Realty in India, insists it has yet to tap into its full potential. Goyal stated, "Currently, properties valued between 10-20 crore are being converted into vacation homes. Most co-owners typically range from six to ten individuals." Companies like Yours specialize in properties priced between 5-20 crore, typically subdivided into eight equal shares, often located in sought-after locales like Goa, Alibaug, and Nilgiris. Each co-owner possesses shares in a special purpose vehicle (SPV) created by the platform. Global research aligns with these findings, suggesting that having eight co-owners is optimal for dividing ownership of a second home grants about 45 days of annual use to each shareholder, Gupta added.
Strata, operating in Bengaluru, is among the companies that provide fractional ownership of premium commercial real estate. Sudarshan Lodha, co-founder and CEO, shared that interest in this model comes primarily from professionals including lawyers, doctors, and entrepreneurs, who seek to gain exposure to real estate investments while professionally managed commercial assets present lucrative options. Despite the enthusiasm, challenges remain: the appetite for fractional ownership is somewhat constrained, mainly due to the absence of a standardized framework, independent valuations, and thorough due diligence. In response, regulatory body Sebi has proposed that fractional ownership platforms fall under its oversight. Nadar articulated that the involvement of high-net-worth individuals in this model will bolster the regulatory framework's growth, supporting supply-side maturity and increased collaboration in the sector.
Beyond real estate, the allure of fractional ownership extends to yachts and private jets; however, this market remains in its infancy, according to Goyal. He pointed out a significant hurdle: Indian cities are often unsuitable for the docking and maintenance of yachts, making them a rare sight in the country. Champion Yacht Club, located in Bengaluru, is one of the few companies offering fractional yacht ownership, where a fractional owner can spend between 1.25 crore and 24 crore annually for six weeks on their yacht. Conversely, the market for fractional ownership of private aircraft is larger and gaining traction, driven by an increase in high-net-worth individuals in the nation. Unlike yachts, private jets significantly reduce travel time, whether for leisure or business, providing further incentives for potential investors.
The landscape of luxury, encapsulated by private aircraft, yachts, and second homes in desirable vacation hubs, is undergoing dramatic transformation, as fractional ownership continues to gain considerable popularity.