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REIT: A pathbreaking trend that boost the FOP in real estate in 2024. By Shravan Gupta

Mumbai (Maharashtra) [India], March 30: The Indian Fractional ownership is constantly growing. Real estate experts have projected steady growth for the commercial segment. People are willing to invest in commercial projects due to the bullish and thriving real estate market.

The fractional ownership platform holds the potential to boost the commercial real estate sector. Shravan Gupta, MGF Group feel it will grow over 25% in 2024. It will draw more buyers in the sector making it a profitable notion for attracting potential investors. Experts suggest commercial real estate is likely to grow 10 times more in the next 5 years and has immense investment potential for Foreign and Domestic Investors. The growth of FOP can be attributed to the opening up of the Real estate stock market.

Some factors responsible for the transformation can be credited to developments like:

Government initiatives

New constructions

The democratisation of assets

.

Role of REIT in FOP’s growth:

In 2024, the commercial real estate segment will witness enhanced liquidity in the sector. This has made it a profitable notion for new and existing customers. Developers like Shravan Gupta, MGF Group are investing more in the real estate segment and this trend is likely to continue. 

The transformation in FOP has been made possible due to investments in the REIT segment. These have paved the way for higher investments in commercial real estate through the FOP model. Some experts feel this plays a crucial role in drawing more investors in FOP. The open market transaction has completely transformed the real estate sector. It has boosted the transparency factor in FOP Models. Such opportunity was not available earlier leading to a decline in Fractional Ownerships. This model is going to be the reason for the real estate’s development in the future.

The growth of small and medium REITs is another reason for the growth of the Fractional ownership platform. The changes implemented by the government have boosted the small and Medium REITs. The FOPS are easy to register through the REIT Scheme. It will have a positive impact on the commercial market making it more profitable. 

Some other advantages of the Fractional ownership platform include advantages like:

It allows the potential to boost the minimum holding due to REIT investment.

All investors can raise capital through stock markets for an investment in the FOP platform.

Fractional ownership and REITs have boosted the Indian real estate sector. This sector is expected to grow and attract more investors this year. Invest in real estate for potential growth and be a part of the story called Indian Real estate.

 Website: https://shravangupta.com/ 

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