Fractional Ownership News

India set for fractional real estate expansion

Fractional property in India is set to take off thanks to the country's natural beauty and favourable economic conditions.

Radhika Shastry, managing director of Group RCI, India, said: “Indians are now open to buying fractional products or second homes. Whether they are farm houses or vacation homes, the concept of holiday homes is already known here. Lots of people, especially the super rich, will look at fractional homes because when you invest in a second home you need to spend considerable time, energy and money on maintaining it through the year. The headache of maintaining it through the year is a real challenge. Hence they wouldn't mind investing in a fractional property,”

The concept is still in its infancy and the product is in an early “establishment phase” but there is considerable interest from resort developers, hospitality companies and potential consumer demand for high-end private residences and fractional properties, says RCI.

According to a report by RCI, pre-paid commitment of consumers has “significant value proposition for developers since it drives cash flows even during tough recessionary times. The model lends itself to flourish during the good times and an opportunity to succeed in challenging times.”

www.grouprci.com

14/09/09