Is it possible to co-own a ₹10 crore vacation home in Goa with just ₹50 lakh, and still enjoy capital appreciation and rental returns? For a growing number of HNIs, the answer is yes. The model making this possible is fractional ownership, an investment framework that offers access to premium real estate without full asset commitment.
Once viewed with caution, this structure is now entering the mainstream. Backed by regulatory traction, it is rapidly gaining credibility, especially among high-net-worth individuals (HNWIs) and global investors seeking access to marquee residential and commercial assets without committing disproportionate capital.
But as traction grows, the question remains: Is this evolution sustainable or simply a trend riding on short-term enthusiasm ?
Fractional ownership allows multiple investors to co-own a high-value property by purchasing equity shares, either through a Special Purpose Vehicle (SPV) or other legally compliant structures. This model enables access to trophy homes, luxury villas, vacation properties, or Grade-A offices at a fraction of the cost while offering proportional returns on rental income and capital appreciation.
In residential formats, the model also allows for personal usage rights, typically scheduled in rotation or limited to specific days in a year. In commercial real estate, investors receive passive income in the form of lease rentals while also benefiting from asset appreciation.
Unlike traditional timeshares, fractional ownership offers true equity ownership with defined rights, responsibilities, and resale potential. Most regulated platforms now offer:
As real estate strategies evolve, HNWIs are gravitating toward asset models that offer both lifestyle alignment and capital preservation — a blend that fractional ownership is uniquely positioned to deliver.
The attraction goes beyond mere financial logic. For luxury property investors, fractional ownership presents a unique intersection of aspiration, access, and efficiency.
This format especially resonates with NRIs, CXOs, and HNWIs who are seeking secondary homes for limited use but still expect consistent value appreciation and operational ease (Rustomjee).
With credibility building across investor categories, it becomes critical to assess how adoption patterns and regulatory evolution are shaping this emerging investment format.
Investor sentiment around fractional ownership is shifting from curiosity to confidence, backed by both market trends and regulatory tailwinds.
A 2024 survey by WiseX revealed that 64% of HNWIs prefer the fractional ownership model for commercial real estate (CRE), and 60% of general investors echoed similar preferences (Financial Express). This trend is being reinforced by regulatory movement. SEBI is in the process of formalizing norms for Fractional Ownership Platforms (FOPs), expected to significantly enhance transparency, compliance, and investor protection (Hindustan Times).
Equally important, market forecasts are turning bullish. The fractional ownership market in India is projected to grow over 10x to surpass USD 5 billion by 2030, according to a JLL-PropShare analysis (Hindustan Times).
As structures become standardized and disclosures more robust, fractional ownership is moving from an alternative concept to a credible asset allocation tool — especially for second homes in high-demand leisure destinations. However, with growing traction comes the need for a sharper focus on associated risks and governance discipline.
Despite its growing credibility, fractional ownership requires caution. The risks, if overlooked, can affect both yield and investor confidence.
These considerations underscore the need to work with established advisory partners, ensure rigorous legal diligence, and choose only those platforms with transparent processes and institutional-grade asset curation.
The future of fractional ownership, particularly in the luxury residential segment, depends on three key factors:
Given the market forecast to surpass USD 5 billion by 2030, this is no longer a passing trend but a fast-evolving asset class with increasing institutional interest. And at SQUAREA, we work closely with institutional platforms, legal experts, and asset managers to help you assess, vet, and execute luxury fractional ownership opportunities with precision and confidence.
To explore curated access to luxury homes and high-yield commercial properties, connect with us at hello@squarea.io or call +91 90 9641 9641.
End-use buyers face a strategic decision — whether to acquire a ready-to-move-in residence for immediate occupancy or to allocate capital towards an under-construction asset. While the latter has historically been associated with higher delivery risk, the landscape in 2025 is notably different. Projects are now governed by RERA-backed regulatory oversight, stringent escrow compliance, and developer accountability.
This evolving ecosystem has redefined the relevance of under-construction inventory, particularly for Indian HNIs and UHNIs seeking customisation, capital efficiency, and future-ready design. As these dynamics continue to shape the market, it becomes essential to assess the strategic value this segment can offer. To understand the continued relevance of this segment, let’s explore the key benefits of under-construction property in 2025 for end-users.
In 2025, the question of "should I buy an under-construction flat" is best answered by examining its strategic merits. For end-users in the luxury segment, these properties offer distinct advantages when backed by due diligence and credible delivery.
1. Price Advantage at Entry
Under-construction homes are priced lower than their ready-to-move counterparts in the same location. In high-demand corridors such as Pune’s western suburbs or Gurgaon’s Golf Course Extension Road, the price differential can range from 10% to 30%. (Sobha)
This lower base cost not only enhances affordability but also improves long-term capital appreciation, especially in projects completing within the next 18–36 months.
2. Capital Appreciation Potential
For buyers not in need of immediate possession, entering early in a project cycle enables higher asset appreciation by the time of completion. This is particularly relevant in micro-markets undergoing infrastructure upgrades, such as Mumbai’s New Cuffe Parade or Pune’s Kharadi.
Additionally, developers often increase pricing in tranches as construction progresses, allowing early buyers to benefit from structured value escalation.
3. Flexible Payment Structure
Unlike ready properties, under-construction homes offer construction-linked payment plans. This phased disbursement allows buyers to align payments with liquidity events or staggered capital deployment, thereby reducing financing pressure.
It also enables financial planning that matches project milestones with investment goals, particularly useful for buyers funding the purchase through asset reallocation or staggered divestments.
Developers of high-end projects typically allow limited customisation in flooring, layout, electricals, or interior finishes if the unit is booked in early phases. This flexibility is especially valuable for end-users seeking to tailor a home to their lifestyle or future requirements.
Completed units, on the other hand, may require costly retrofits or compromise on layout, which is non-ideal for long-term habitation.
Under-construction homes often incorporate newer materials, design efficiencies, and technology integrations. These include better energy ratings, improved ventilation systems, smart home readiness, and modern security systems.
Buyers entering these projects secure residences that are aligned with the latest in home technology, both in terms of functionality and long-term market relevance.
Buyers of under-construction projects generally have access to a wider range of unit configurations, views, and floor elevations. This enables selection that aligns with long-term value, whether in terms of Vastu compliance, sunlight exposure, or exclusivity of position.
This flexibility diminishes significantly once the project is completed and only residual inventory remains.
Under-construction properties offer notable tax benefits for end-use buyers financing their purchase through home loans. End-use buyers of under-construction homes can claim up to ₹2 lakh per annum on interest under Section 24(b) and ₹1.5 lakh on principal repayment under Section 80C after possession. An additional deduction of ₹50,000 under Section 80EE or ₹1.5 lakh under Section 80EEA may also apply for eligible first-time homebuyers, depending on loan sanction timelines and conditions. (ClearTax) Given these fiscal advantages, along with the structural and design benefits, it is worth assessing how under-construction property advantages for end-users compare against ready-to-move-in properties across key decision parameters.
To assist end-use buyers in evaluating both options, here is a comparison of under-construction vs ready-to-move homes in India:
| Parameter | Under-Construction Homes | Ready-to-Move Homes |
|---|---|---|
| Price Point | Lower entry price | Premium priced |
| Customisation | High (during early phases) | Limited or costly |
| Payment Structure | Staggered, construction-linked | Lump-sum or full at possession |
| Availability | Wide unit choice | Limited inventory |
| Capital Appreciation | High potential pre-possession | Lower due to near-peak pricing |
| Immediate Use | No | Yes |
Under-construction homes are no longer speculative ventures. When selected with diligence, they present a compelling mix of strategic location, modern design, and financial advantage.
For buyers exploring this segment, a home buying guide for under-construction projects should start with three pillars: regulatory compliance, developer track record, and capital alignment. These form the foundation for a confident, forward-looking investment.
At SQUAREA, we offer curated access to India’s premium real estate opportunities, selected for their financial, legal, and execution credibility. For tailored investment guidance, reach out at hello@squarea.io or call +91 90 9641 9641.
The Real Estate (Regulation and Development) Act, or RERA, has reshaped the Indian real estate market by embedding accountability, transparency, and delivery discipline into every transaction. For high-value buyers, particularly Indian HNIs and UHNIs, this has introduced a long-overdue layer of legal clarity in a space once defined by informal practices and opaque timelines.
These developments underscore the growing importance of understanding the RERA timeline for homebuyers in India, especially for those allocating capital into premium or under-construction assets. Whether you're investing in a branded residence or a high-rise penthouse, understanding how RERA governs your transaction is fundamental to protecting value, timelines, and long-term investment integrity.
To fully appreciate these safeguards, it is essential to first understand the regulatory framework that underpins them.
RERA, enacted in 2016 and enforced from May 2017, established a regulatory framework across Indian states to promote transparency and protect property buyers (Bajaj Finserv). It mandates that developers:
Most importantly, homebuyer rights under RERA include timely possession, compensation for delays, and the right to legal recourse, all of which collectively shift the balance of power from developers to buyers. To make the most of these safeguards, it's essential to understand how the RERA framework maps across the moment of booking to final possession.
The journey from booking a property to receiving possession has become far more structured post-RERA. For premium real estate buyers, understanding these milestones is critical not only for timely delivery but also for enforcing contractual obligations.
Every RERA-compliant project must be registered with the respective State RERA portal. Buyers should:
This establishes the legal and financial framework that protects buyers in case of delay or dispute.
Developers are required to publish quarterly progress reports on the RERA portal. These reports cover:
Buyers are advised to track these updates closely. A lack of disclosure or inconsistent updates can be an early warning of execution issues.
Before possession, developers must obtain the Occupancy Certificate (OC) and upload the Architect’s Completion Certificate (Form 4) to the portal. Homebuyers should:
Only once these are confirmed should the final payment and registration take place.
If possession is not delivered by the declared date, the buyer has the right to RERA possession delay compensation under Section 18. This includes:
Recent tribunal decisions in markets like Bengaluru and Delhi NCR have reinforced that these provisions are far from symbolic. Homebuyers facing prolonged delays have been given substantial compensation, setting a clear precedent for accountability under RERA.
Buyers can initiate formal complaints via their state’s RERA portal. The process typically involves:
Penalties can include fines, interest payments, or cancellation orders. Proactive documentation and prompt filing significantly increase the chances of favourable outcomes.
For high-value investors, however, legal recourse is only one part of the equation. The real advantage lies in anticipating risks early and structuring the investment to avoid such pitfalls altogether.
Navigating the booking-to-possession process in real estate for luxury and ultra-luxury properties requires a sharper lens. As a homebuyer or investor, you should:
By aligning each stage of the transaction with the mandated steps in home buying under RERA, homebuyers can ensure regulatory compliance, minimise execution risk, and safeguard capital across the lifecycle of the asset.
At SQUAREA, we guide clients through the full spectrum of compliance, from validating a project’s RERA timeline to ensuring documentation is legally sound. To explore opportunities that meet these standards, write to us at hello@squarea.io or call +91 90 9641 9641.
India’s real estate sector is no longer just resilient; it is outperforming. In 2024, institutional investments reached a record USD 8.9 billion, up 51% from the previous year. Of this, 45% went into residential and 28% into office assets, underscoring a clear shift toward long-term real estate allocation (JLL). Meanwhile, premium housing—homes priced above ₹10 million—witnessed a 10% year-on-year growth in Q1 2025, reflecting end-user confidence (JLL). This momentum is backed by solid fundamentals: demand from affluent buyers, foreign institutional flows, and favourable rental dynamics.
For Indian HNIs and UHNIs, the opportunity is clear—but so is the challenge. In this dynamic environment, simply owning multiple properties no longer qualifies as strategy. In today’s market, performance comes from precision. It’s time to build with intent. This is where a balanced property investment plan becomes not just ideal, but essential.
In 2025, a real estate portfolio cannot be one-dimensional. Capital must work across different asset types—residential, commercial, listed REITs, and alternates—each serving a defined role.
This is where a structured real estate portfolio strategy in India 2025 becomes indispensable. Diversification reduces exposure to cyclical risks and aligns real estate with your broader capital strategy—preservation, income, or intergenerational growth.
To build that level of resilience, it is essential to understand the key levers that drive returns across property types.
Truly diversified real estate investments should blend growth, yield, and optionality. Each of the following asset types plays a distinct role in building a resilient portfolio.
Premium residential housing continues to show strong absorption, especially in top cities like Mumbai, Pune, Delhi NCR, and Bengaluru. Prices are expected to rise 6.5% in 2025 and 7.5% in 2026, after a 4.3% increase last year (The Economic Times). For HNIs and UHNIs, such properties are not only lifestyle assets but also strategic capital anchors.
Investing in a marquee branded residence or a centrally located luxury property can deliver long-term appreciation while enhancing the overall strength and identity of one’s portfolio.
Office assets are regaining investor interest with strong leasing momentum. In Q1 2025, India’s top 8 cities recorded 20.3 million sq. ft. in gross leasing volume, with Bengaluru leading at 24%, followed by Mumbai and Pune (Cushman & Wakefield). Demand from Global Capability Centres (GCCs) and tech-driven firms continues to drive occupier interest.
Capital allocation here should focus on income-generating Grade-A office floors or institutional business parks located in supply-constrained micro-markets with strong tenant profiles.
India’s four listed REITs collectively distributed ₹1,553 crore in Q4 FY25, a 13% increase year-on-year (Business Standard). With access to institutional-grade office assets, REITs offer transparency, stable cash flows, and lower entry barriers.
For investors seeking diversification with liquidity, allocating 10–15% of capital to REITs can provide exposure to managed real estate portfolios without the operational burden of direct ownership.
HNIs are increasingly exploring second homes in destinations such as Alibaug, Goa, and the Nilgiris, driven by lifestyle value and hybrid living trends. Plotted land in urban expansion corridors continues to offer long-term appreciation, while fractional ownership platforms are enabling entry into high-value hospitality and commercial assets through lower ticket sizes.
These formats are well-suited for investors seeking portfolio variety, early-stage capital deployment, or assets that align with personal lifestyle preferences.
The best real estate asset mix in 2025 is not defined by fixed percentages. It’s shaped by your capital objectives, life stage, and risk appetite. Younger investors may prioritise long-term appreciation-led assets such as premium homes or land parcels, while those nearing retirement might lean towards income-generating properties and listed REITs for liquidity and stability.
Building with intent begins with selectivity and ends with discipline. Here's how to build a real estate portfolio in India:
With rising asset prices, record institutional activity, and growing product diversity, Indian real estate demands a more informed, balanced approach. However, navigating this landscape can feel overwhelming.
This is where expert guidance makes all the difference. From identifying fit-for-purpose assets to managing legal diligence and long-term rebalancing, the right advisory partner ensures your portfolio is not just built, but built to endure
At SQUAREA, we offer curated access to India's most prestigious commercial and residential properties. For tailored investment guidance, reach out at hello@squarea.io or call +91 90 9641 9641.