Kerala is slowly catching up with global trends in every turf, be it construction, real estate, or technology. Several hotel chains and resorts across Kerala are now adopting the novel concept of Fractional ownership. This trend is witnessing increased visibility in Kerala now. The main challenge that the tourism sector in Kerala faced was educating potential investors about the fractional ownership concept. Besides, it is a relatively new concept in Kerala. However, as people add more commercial assets to their portfolios, they are slowly realizing the potential value of such an investment in the real estate and tourism sector. The concept of fractional ownership often involves several investors sharing a high-profile asset like a tourism or real estate property.
Multiple parties can share the ownership of an expensive asset under this method of ownership. Apart from that, the owners associated with the fractional investment can share the benefits of income, transfer, as well as usage rights. Fractional ownership in hotels and resorts is a fairly new concept in Kerala. This concept is becoming increasingly popular across Kerala with busy professionals are looking to upgrade their vacation style at just a fraction of the cost. Moreover, this method allows people to own lavish real estate. It enables people to own built-up property as well as an undivided share in the land around it. Fractional investment in the tourism and hospitality sector can be used as an asset that can be transferred, sold, or gifted to a family. Each fractional owner will enjoy all the features of the portion they have invested in.
Moreover, they can enjoy numerous additional privileges such as discounts on resort facilities and spas in the project. As long as the property is operational, fractional ownership can generate daily income for the owners. Furthermore, fractional ownership provides the potential buyers with a lucrative investment opportunity and a lavish usable property. One of the biggest merits of this amazing concept is that the structure will allow individuals to enjoy ownership of a built-up property while they share the risk and cost with other investors. The investor can own the title of the fraction that can be transferred or sold. The value of individual investor’s ownership grows if the property appreciates.
Fractional ownership has entered the Kerala property investment radar due to its huge potential for returns. Also, fractional ownership has made investing in commercial real estate hassle-free and easy. Commercial real estate has now become both lucrative and accessible for a majority of Keralites with the introduction of fractional or shared ownership. Fractional real estate investment is a new income model and an efficient way to invest in commercial real estate. The concept of fractional ownership in tourism, hospitality, and real estate has been prevalent in the Europe or US for a decade and is now picking up in Kerala. Fractional investment is one of the best ways to invest in commercial real estate. Owners can earn a monthly rental yield as well as build long-term wealth. Fractional ownership is the combined ownership of a single property or asset by multiple investors.
Smaller investors can become co-owners of various properties with greater flexibility at lower financial costs. This makes the tourism and hospitality segment more accessible for almost all kinds of investors. Nowadays, several leading real estate developers and hotel owners in Kerala are also foraying into offering joint ownership plans for hotel apartments. This move will allow real estate brokers to sell posh and luxury locations to bigger audiences. This also enables investors with tighter budgets to earn higher returns.
Kerala’s Tourism and hospitality sector are changing and reconsidering their business models for maintaining their market position in a rapidly evolving tourism and travel sector. The fractional investment provides access to high-return high-value opportunities by letting you invest small and yet own a part of prized tourism or real estate properties. Investments in commercial real estate are usually done by high-net-worth individuals due to the high-ticket sizes. Fractional investment not only allows users to diversify their wealth portfolio but also grow their assets seamlessly without having to physically manage them.
Amidst the low interest rates on fixed deposits and volatility of the stock market we have seen a rise in individuals acquiring a slice of high-value assets such as a luxury villa or commercial real estate. By doing a Fractional investment in the tourism or hospitality sector, investors receive all the benefits of owning the property without the requirement of huge upfront capital. With fractional ownership, investors can share the rewards with their co-investors. At the same time, they also mitigate the risk of ownership. Besides commercial real estate, fractional ownership in the tourism and hospitality sector is also gaining popularity amongst people in Kerala as it offers maximum benefit with minimum investment.
