News • Real Estate

fractional: Can commercial real estate offer inflation-beating returns? Think fractional ownership.

2 years ago

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Royal Bank of Scotland (RBS) logo is seen outside their building in Gurugram on the outskirts of New Delhi, India.

Synopsis

Is investing in a building leased out to TCS a better option than to own TCS stock? According to BlackRock, real estate outperforms bonds and stocks during inflationary times. And fractional ownership helps in owning one. The model lets investors pool in money to finance a commercial property. Depending on the asset quality, these investments give returns up to 10%.

If the year 2020 was a threat to life, then 2022 is the same to capital. Expensive crude prices, high inflation, and rising interest rates are giving the economy and individuals a tough time. On the other hand, wealth in capital markets is eroding as growth projections get redrawn, and one-year deposit rates are hovering just around 5% (hardly inflation-proof). As risk capital flees in search of safer havens, can commercial real estate offer a

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