Fractional ownership platforms make commercial real estate accessible

Until they come under Sebi's MSM REIT framework, retail investors must rely on their own due diligence when investing through them

Sanjay Kumar SinghKarthik Jerome New Delhi
office, real estate

Fractional ownership platforms platforms make commercial real estate accessible to retail investors. (File photo)

With the number of fractional ownership platforms (FOPs) growing, and large sums of money belonging to retail investors being invested through them, the Securities and Exchange Board of India (Sebi) has come out with a consultation paper that is a precursor to regulating them under the MSM (micro, small, medium) REIT (real estate investment trust) framework. The idea is that if these real estate platforms grow within a regulated environment, they will be more transparent, financially disciplined, and accountable. Investors will also feel safer investing through them.
“The successful listing of commercial office REITs (real estate investment trusts) and recently of a retail REIT has given Sebi the confidence that such platforms, if regulated, will result in increased fund flows into real estate assets and enable retail participation,” says Anuj Puri, chairman, ANAROCK Group.
How do FOPs work

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First Published: May 20 2023 | 1:19 PM IST

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