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PropsAMC to launch fractional ownership opportunities

PropsAMC, the asset management services, and data intelligence division of Square Yards has recently announced its foray into real estate investment opportunities via a fractional ownership platform. Backed by proprietary tools and data analytics, the company aims to offer young working professionals an opportunity to invest in high-quality “income-generating” real estate properties and other secured real estate securities at a fraction of the actual cost. Taking advantage of promising returns recently witnessed in short to medium term investments, the company aims to provide investors with an IRR of 14-15% on the capital invested along with a 7-9% annual yield for a period ranging from 3 to 6 years.

In a recent press release, Anand Moorthy, the co-founder and CBO of Square Yards’ Asset Management Services and Data Intelligence, spoke about the latent opportunities that lay within this realm. He believes that real estate has always proved to be a sound investment, especially so when it’s backed by a secure title, is fairly valued and managed by experts. Fractional ownership opens opportunities for individuals with modest sums of money to benefit from investing in several properties with little to no development risk and eventually turning their investments into trading assets.

The commercial real estate industry has been long dominated by individuals with deep pockets and large institutions owing to the substantial initial investment needed. Fractional ownership platforms are hoping to challenge this status quo by making commercial real estate more accessible to the typical Indian. The concept is fast gaining momentum as an enviable investment opportunity as it appears to provide stable returns in the form of a predictable inflow along with a healthy capital appreciation in a fairly short span of time. Some experts are even touting it as less volatile when compared to REITs that are susceptible to market fluctuations. 

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