Fractional ownership market in India predicted to grow over 10x to surpass USD 5 billion by 2030: JLL – PropShare analysis

The Indian fractional ownership market is currently estimated at around USD 500 million and is expected to grow 10 times in the next 5 years. Albeit the regulatory compliance issues that the industry is expected to witness during the initial phase of implementation of the MSM REIT regulations, these are expected to pave the way for the market to grow and potentially surpass USD 5.0 billion of Asset Under Management (AUM) by 2030.

 

A JLL – PropShare analysis, released today, highlights the immense growth potential of the real estate fractional ownership market in India. The analysis examined Grade A office assets across the top seven (Mumbai, Delhi NCR, Kolkata, Chennai, Bengaluru, Pune, and Hyderabad) markets of India shedding light on the potential size and expected growth trajectory of the market.

 

Traditionally, real estate investment has required a substantial amount of capital. Given high capital requirements and lack of liquidity, investing, especially in commercial real estate was limited to institutional investors or individuals with significant financial resources. However, the emergence of REITs and Fractional Ownership Platforms (FOPs) have transformed the real estate investment landscape. These innovative platforms have democratised access to real estate for retail investors and provide opportunities for investors to diversify their investment portfolios by accessing asset classes that were previously exclusive.

 

“The current fractional ownership market is estimated at ~USD 500 million based on value of assets under management. However, our analysis reveals significant prospects for growth. More than 328 million sq. ft of grade A office assets in the top seven cities of India, valued at ~USD 48 billion are MSM REIT-worthy. This illuminates the promise and potential of this sector’s burgeoning future. The REIT market in India grew from ~INR 0.3 trillion to ~INR 1.3 trillion in Gross Asset Value (GAV) within a span of five years. As the regulatory framework falls into place and FOPs overcome initial implementation obstacles, we expect the MSME REIT market to experience an even more accelerated pace of growth,” said Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

Small and Medium REITs: Fostering Growth with Regulatory Oversight

To formalise the nascent fractional ownership space, the Securities and Exchange Board of India (SEBI) has the Small and Medium Real Estate Investment Trusts (SM REITs). Amendments to the REIT Regulations 2014 enable the formation of SM REITs, addressing concerns regarding regulatory oversight in FOPs.

Prior to the SM REITs regulations, regulatory oversight of FOPs was mostly ambiguous or absent and with rising investor interest it raised concerns on lack of uniformity in disclosure standards, lack of transparency in valuation, management fees, maintenance costs, redressal of investor grievances. The notified regulations require registration of all FOPs with SEBI under the REIT regulations. With all schemes listed on stock exchanges, open market transactions will lead to more transparency, better investor protection and making exits easier for investors, truly democratizing the investment play in Indian real estate.

Key aspects of the SM REITs regulations

The regulations address key aspects to safeguard investor interests, and to ensure organized growth of the market. First, it requires the investment manager responsible for setting up an SM REIT to have a net worth of at least INR 20 crore and at least two years’ experience in the real estate industry or real estate fund management. Also, in a scheme of the SM REIT scheme which has opted not to undertake leverage, the investment manager shall always hold at least 5 per cent of the total outstanding units during the first three years. The minimum holding increases to 15 per cent in the case of leveraged schemes. Second, SM REIT schemes are not allowed to invest in under-construction or non-revenue generating real estate assets. At least 95% of the value of the schemes’ assets must be invested in completed and revenue generating properties and the remaining 5% can be invested in ‘unencumbered’ liquid assets. Third, the size of the asset to be acquired in a SM REIT scheme should be at least INR 50 crore and less than INR 500 crore with units to be issued to a minimum of 200 investors.

The SM REIT regulations lower entry barriers and have the potential to bring many income-generating small and medium real estate assets under the purview of REITs, providing a new funding avenue for them to raise capital. Additionally, it is expected to act as a catalyst in enhancing transparency and market efficiency, thereby boosting the participation of domestic as well as foreign retail investors and increasing liquidity in the Indian real estate market.

“As the first and largest platform, PropShare was a pioneer in establishing the FOP market in India. When we started PropShare, our aim was to make institutional quality real estate accessible to a larger audience of sophisticated investors. With MSME REIT regulations, SEBI is now formally bringing this growing market into the regulatory ambit, which should lead to significant growth in this asset class while at the same time ensuring investors get the benefits that come with regulation – uniformity, fairness, transparency, and redressal mechanisms,” said Kunal Moktan, CEO, PropShare

A market with immense growth potential

Fueled by technological advancements and growing investor interest in alternative investment avenues, the FOP market in India is witnessing rapid growth. These platforms leverage online platforms and digital solutions to streamline the investment process, making it more accessible and user-friendly for a wider audience.

 

Fractional Ownership Platforms Demystified

Fractional ownership, as the name suggests, empowers investors to own a fraction or share of a property, effectively lowering the entry barrier and enabling a diverse range of investors to participate. Fractional Ownership Platforms act as facilitators, streamlining the fractional ownership process. They provide a formal channel that enables retail investors to tap into primarily pre-leased commercial real estate including office spaces, warehouses, or even shopping malls (with office spaces currently dominating the market), at a fraction of the total cost. The cost of acquisition is split among several investors, who invest in securities issued by a Special Purpose Vehicle (SPV) established by the FOP. The investors earn returns in the form of rentals as well as long-term value appreciation of the property, with distributions made post deduction of management fees and other maintenance expenses. Over the past few years, web-based platforms offering fractional ownership of real estate assets have proliferated, attracting a growing number of investors.  However, a critical aspect remained unaddressed – regulatory oversight.

 

Looking Ahead

Fractional ownership, with its inherent advantages of affordability, diversification, and potential for appreciation, is poised to become a mainstream investment option in India. As fractional ownership platforms continue to evolve in India, it is essential to focus on educating investors and stakeholders about this investment model. Efforts must also be made to enhance digital infrastructure and foster collaboration between FOPs, developers, and regulatory bodies.

 

Moreover, addressing the regulatory aspects will ensure a well-defined and secure environment, allowing the sector to flourish and empower individuals, regardless of their investment capacity, to participate in the real estate market in an institutional manner.  In conjunction with REITs, SM REITs are set to accelerate the journey of India’s real estate sector towards becoming more organized and institutionalized. This, in turn, will fuel the growth and development of the real estate sector, creating a win-win situation for investors, asset owners, and the economy.

 

About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500 company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 106,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

 

NetApp Turbocharges AI Innovation with Intelligent Data Infrastructure

NetApp® (NASDAQ: NTAP), the intelligent data infrastructure company, today announced new capabilities that maximise the potential of generative artificial intelligence (Gen AI) projects and build competitive advantage for users. Customers can now take their AI projects to the next level by combining NetApp’s intelligent data infrastructure with high-performance compute, networking and software from NVIDIA.

Gen AI has captured global attention for its potential to automate tedious tasks, uncover new insights, and drive product innovation. Nearly three out of four companies are already using Gen AI, according to the NetApp 2023 Data Complexity report. To unlock the potential of Gen AI, organisations need secure, high-performance access to data spread across complex hybrid and multicloud environments. NetApp has a long and successful history of expertise in supporting AI with solutions that deliver management simplicity anywhere data lives, provide high performance without requiring new infrastructure silos, and supply trusted, secure data to drive responsible AI.

“NetApp is the intelligent data infrastructure company, with solutions optimised to unleash the full potential of our customers’ investments in AI”, said Ravi Chhabria, Managing Director at NetApp India. “Our distinct approach to AI provides complete access and control over their data across the entire pipeline, moving seamlessly between public cloud and on-prem environments. Through the strategic tiering of object storage tailored to each phase of the AI process, our customers can fine-tune performance and costs precisely where they want. Our unified approach ensures the performance, productivity, and protection customers need to innovate with AI.”

 

To support companies leveraging Gen AI to improve their operations and strategic decision-making, NetApp released updates to its intelligent data infrastructure capabilities including:

  • NetApp AIPod™is NetApp’s AI-optimised converged infrastructure for organisations’ highest priority AI projects, including training and inferencing. NetApp AIPod powered by NVIDIA DGX is now a certified NVIDIA DGX BasePOD solutions using NVIDIA DGX H100 systems integrated with NetApp AFF C-Series affordable capacity flash systems to drive a new level of cost/performance while optimising rack space and sustainability. NetApp AIPod powered by NVIDIA DGX also continues to support NVIDIA DGX A100
  • New FlexPod for AI reference architecturesextend the leading converged infrastructure solution from NetApp and Cisco. FlexPod for AI now supports the NVIDIA AI Enterprise software platform. FlexPod for AI can now be extended to leverage RedHat OpenShift and SuSE Rancher. New scaling and benchmarking have been added to support increasingly GPU-intensive applications. Customers can use these new FlexPod solutions as an end-to-end blueprint to efficiently design, deploy, and operate the FlexPod platform for AI use cases.
  • NetApp is now validated for NVIDIA OVX systems. NetApp storage combined with NVIDIA OVX computing systemscan help streamline enterprise AI deployments, including model fine-tuning and inference workloads. Powered by NVIDIA L40S GPUs, validated NVIDIA OVX solutions are available from leading server vendors and include NVIDIA AI Enterprise software along with NVIDIA Quantum-2 InfiniBand or NVIDIA Spectrum-X Ethernet, and NVIDIA BlueField-3 DPUs. NetApp is one of the first partners to complete this new storage validation for NVIDIA OVX.

 

“Gen AI is catapulting Asia Pacific enterprises to the vanguard of the impending technological revolution. To empower organisations in navigating today’s complex IT environment, NetApp is providing an intelligent data infrastructure that breaks down silos, fosters agility, and tailors optimisation for AI applications,” stated Masahiro Waki, AI Business Lead for NetApp Asia Pacific. “Our pivotal partnerships with AI trailblazers such as NVIDIA also allow us to create sophisticated data pipelines for enterprises embarking on innovative AI ventures.”

 

To further enhance its AI leadership, NetApp also is announcing revolutionary new cyber-resilience capabilities including one of the first uses of AI/ML embedded in storage to fight ransomware. The new Autonomous Ransomware Protection with AI (ARP/AI) will provide the next generation of machine learning in ONTAP, giving the increased accuracy and performance required to detect and mitigate new, more sophisticated cyber threats.

“AI powers mission-critical use cases in every industry, from healthcare to manufacturing to financial services,” said Tony Paikeday, Senior Director of AI Systems at NVIDIA. “NetApp AIPod certified for NVIDIA DGX BasePOD provides a powerful reference architecture that helps enterprises eliminate design complexity, reduce deployment time frames, and simplify ongoing operations.”

“GenAI has massive potential to help organisations harness their data to uncover business insights and improve operational efficiency,” said Archana Venkatraman, Research Director, Cloud Data Management, IDC. “NetApp has continuously adapted to deliver the services and solutions customers need to effectively manage their data pipelines. These updates further illustrate NetApp’s willingness to evolve and bring innovations to customers that unlock the full potential of AI.”

NetApp delivers a unified approach to infrastructure and data management that eliminates data silos, brings enhanced performance and trusted data protection to customers’ AI turnkey solutions, and helps customers accelerate the time to results for their AI projects.

MMTC-PAMP Introduces Commemorative Ram Lalla Silver Bar: A Token of Devotion

MMTC-PAMP, India’s only London Bullion Market Association (LBMA) Good Delivery gold & silver refinery is proud to announce the launch of the Ram Lalla 50 grams purest Silver Bar at 99.99+% purity. This exquisite bar pays homage to Lord Ram, showcasing a coloured image of the Ram Lalla idol 3D embossed on the front, and the iconic Ram Mandir depicted on the back.

Lord Ram holds immense significance for millions of devotees worldwide. Revered as the seventh incarnation of Lord Vishnu, Lord Ram is celebrated for righteousness, justice, and moral integrity. His epic journey, as chronicled in the revered scripture Ramayana, serves as a timeless testament to the triumph of good over evil and the enduring power of faith and devotion. The product is now available at MMTC-PAMP Purity Verification Centers (PVC) across India.

Speaking on the announcement, the spokesperson of MMTC-PAMP stated, “As India rejoices in the inauguration of the Ram Mandir and the Pran Pratishtha of the revered Ram Lalla idol, MMTC-PAMP takes pride in contributing to this historic moment with the launch of the Ram Lalla Silver bar. With its exquisite design on purest silver with the Finest Swiss Craftsmanship, and profound symbolism, the silver bar serves as a timeless tribute to the revered legacy of Lord Ram and his enduring message of righteousness, compassion, and divine grace.”

The Pran Pratishtha ceremony at Ram Mandir, wherein the divine spirit was invoked into the idol of Lord Ram, marked a momentous occasion in the Hindu calendar, signifying the presence of the divine in the earthly realm. It is a time of profound reverence and spiritual awakening, as devotees gather to pay homage to the beloved deity and seek his blessings for prosperity, peace, and harmony.

MMTC-PAMP’s Ram Lalla Silver bar embodies the essence of this sacred occasion, offering devotees a tangible symbol of their faith and devotion. Meticulously crafted to the highest standards on purest silver with 99.99+% purity, customers can cherish the authenticity and value of each bar. The Ram Lalla Silver Bar is a timeless symbol of devotion and spirituality, making it an ideal and cherished memento, which can be passed down through generations.

The full-scale image of Ram Lalla on the silver bar details the 10 avatars of Lord Vishnu, along with the image of Hanuman and Garuda, as created in the idol in Ayodhya. These symbols hold profound significance for many followers of Lord Ram. Staying true to this sentiment, the silver bar also carries a colourful image of the Ram Mandir on the reverse side of the bar.

Every product created by MMTC-PAMP goes through a rigorous purification process to ensure 999.9+ (99.99+%) the purity of the metal. To validate the authenticity, every MMTC-PAMP product carries a unique number and comes packaged in Assayer Certified Minted Cards. Each gold and silver product bought from MMTC-PAMP offers positive weight tolerance, which guarantees that every coin or bar one buys weighs more than the listed weight, ensuring customers receive the highest value for their investment.

About MMTC PAMP:  A joint venture between Switzerland-based bullion refinery, PAMP SA, and MMTC Ltd, a Miniratna and Government of India Undertaking. MMTC-PAMP is the only LBMA-accredited gold & silver good delivery refiner in India and is accepted across global commodity exchanges and central banks. The company seamlessly marries Swiss excellence with Indian insights. MMTC-PAMP India Pvt. Ltd. is internationally recognized as an industry leader in bringing global standards of excellence to the Indian precious metals industry.

MMTC-PAMP has received several awards since its inception from local and global industry bodies for Refining, Brand and Sustainability. Also, MMTC-PAMP is India’s First Precious Metals Company to have Science-based Emissions Reduction Targets Approved by the SBTi. MMTC-PAMP also has been recognised by the India Book of Records as the country’s only brand providing the purest gold and silver coins and bars with 999.9+ purity levels and positive weight tolerance to consumers.

 

 

 

EaseMyTrip Opens its Second Franchise Store in Gurgaon

EaseMyTrip.com, India’s leading travel tech platform, announced the opening of its new franchise store in Gurugram, Haryana, marking a significant step in its ongoing nationwide expansion. Located at Shop No. 14, First Floor, M3M Tee Point, Sector 65, Gurugram, this addition is EaseMyTrip’s second franchise in the city, showcasing its dedication to enhancing travel service accessibility through a strategic mix of online and offline channels.

Situated in the dynamic sector 65, renowned for its commercial activity and accessibility, the new franchise is ideally positioned to meet the increasing travel needs of Gurugram’s diverse population. Designed to mirror EaseMyTrip’s energetic brand essence, the store offers a welcoming environment for customers seeking expert travel planning and personalised service.

The Gurugram franchise will provide a full range of travel solutions, including flight and hotel bookings, bus and railway tickets, group travel arrangements, luxury vacations, cruises, and charters, along with visa application assistance and other travel essentials, ensuring a smooth journey from start to finish.

Reflecting on the new launch, Mr. Rikant Pittie, Co-Founder of EaseMyTrip, shared, “Our expansion into Gurugram with a second franchise at M3M Tee Point is more than just opening another store; it’s about embedding ourselves within the community and making quality travel planning accessible to everyone. We’re here to demystify travel, offering our expertise and personalised services right at your doorstep. This new store is a committed promise to deliver unparalleled travel experiences, showcasing our commitment to understanding and fulfilling the unique travel needs of our customers. We’re not just selling travel; we’re crafting memories, one journey at a time.”

EaseMyTrip officially launched its flagship brand, EaseMyTrip Franchise, early last year. Since then, the brand has opened 12 offline stores under its franchising model across India, with the recent one being in Jalgaon, Maharashtra. Inaugurating stores through its franchising model is a strategic decision aligned with the company’s expansion plans.

Uber Expands Diversity and Inclusion Initiative, Embracing Inclusivity for All

Uber, India’s leading mobility platform today, announced the latest iteration of the She++ initiative, its commitment to promoting diversity, equity, and inclusion within the technology sector. The program provides early-career opportunities for women, people with disabilities, and other underrepresented students to intern with Uber’s engineering teams, gaining insights, and experience in the technology industry.

The She++ initiative, initially aimed to promote women in engineering, has evolved into a broader diversity initiative.  This year, the initiative received over 4000 applications from top engineering colleges across India, highlighting an increasing desire for diversity, equity, and inclusion in the workplace. Hosted on March 7 at  Uber’s  Bangalore Campus,  the event provided students with a unique opportunity to engage with Uber’s leaders and HR professionals.

Dawn Carter, Director, Global Talent Acquisition, Uber said, “At Uber, we are committed to breaking down barriers and fostering an environment where all individuals can flourish. The expansion of She++ to encompass individuals with disabilities and others represents a significant stride in our mission to cultivate a more inclusive society. As Uber continues to prioritize diversity and inclusion, She++ stands as a cornerstone in our endeavour to forge a more equitable future for everyone. Through initiatives like She++, Uber not only shapes the trajectory of technology but also aims to propel positive societal transformation.”

The She++ professional development initiative offers a platform for early in-career talent to learn from industry leaders, develop essential skills, and expand their professional network. The event  proved to be  a resounding success, highlighted by enriching activities like fireside chats with industry leaders, speed mentoring sessions, networking lunches, and opportunities to contribute to Uber’s innovation.

Last year, the initiative witnessed participation from over 2000 students from top engineering colleges across India, highlighting the growing demand for inclusivity in the workforce.

Amrutanjan Healthcare strengthens focus on Health with Electro+, launches Low Sugar variant and ropes in Ruturaj Gaikwad as Brand Ambassador

Amrutanjan Healthcare, a renowned name in the healthcare and wellness industry, is proud to introduce the latest addition to its product line up – the low sugar variant of Electro+, an electrolyte drink designed to replenish energy levels and combat dehydration and fatigue. In conjunction with this launch, Amrutanjan also announces Indian cricketer Ruturaj Gaikwad as the brand ambassador for Electro+.

Electro+ has been formulated to provide effective cell-level hydration and replenishment of electrolytes, essential for restoring energy and combating exhaustion. With the introduction of a low sugar variant, Electro+ continues to prioritize health-conscious consumers, offering a refreshing beverage option with no added sugar.

The unveiling of the low sugar variant of Electro+ coincides with Amrutanjan’s partnership with Ruturaj Gaikwad, an emerging star in Indian cricket. Ruturaj’s dedication to his sport and commitment to maintaining peak performance align perfectly with Electro+’s core values of promoting health and vitality. As the brand ambassador, Ruturaj Gaikwad will play a pivotal role in showcasing the benefits of Electro+ and encouraging consumers to prioritize hydration and electrolyte balance for overall well-being.

The brand’s new TVC showcases the importance of Electro+ in combating dehydration and tiredness  and staying hydrated during intense physical activity. The commercial features Ruturaj Gaikwad in action on the cricket field, visibly fatigued and in need of revitalization during a drinks break. His need for more than just an ordinary drink, highlights the efficacy of Electro+ in replenishing energy levels and rehydrating at the cellular level. The video emphasizes the importance of Electro+ in combating exhaustion and restoring vitality, making it an essential companion for individuals leading active lifestyles.

Mr S Sambhu Prasad, Chairman and Managing Director of Amrutanjan Health Care Limited, expressed his enthusiasm for the launch of the low sugar variant of Electro+ and the collaboration with Ruturaj Gaikwad stating, “At Amrutanjan, we are committed to offering innovative solutions that promote health and well-being. The introduction of the low sugar variant of Electro+ underscores our dedication to meeting the evolving needs of our consumers. We are delighted to welcome Ruturaj Gaikwad to the Amrutanjan family and are confident that his association with Electro+ will resonate with audiences across India.”

Mr Mani Bhagavatheeswaran, Chief Marketing Officer of Amrutanjan Health Care Limited, spoke on the significance of Ruturaj Gaikwad’s role as the brand ambassador for Electro+, “Ruturaj Gaikwad epitomizes the spirit of vitality and resilience, making him the perfect choice to represent Electro+. This association, beyond a simple endorsement, is about raising awareness and making electrolyte drinks a go-to choice for anyone seeking an effective way to stay energized and combat fatigue throughout their day. Ruturaj’s dedication to peak performance make him the perfect voice to remind consumers about the importance of prioritizing hydration and electrolyte balance. We look forward to a successful partnership with Ruturaj Gaikwad and to educate consumers about the everyday necessity of electrolyte balance for optimal health and vitality.”

Mr Ruturaj Gaikwad commented on this association, saying “I am extremely delighted to be partnering with Amrutanjan Healthcare for their brand Electro+. Hydration and energy maintenance are crucial not just for athletes like myself, but for everyone in their daily routines. Ensuring adequate electrolyte balance is essential for peak performance and overall health, whether one is hitting the field or managing daily tasks. I am glad that we have a solution from Amrutanjan Electro + for that. I hope more people will now be aware that staying well-hydrated not only boosts mood, memory, and attention but also contributes to overall well-being.”

Electro+ is now available in the market in both regular and low sugar variants, offering consumers a refreshing beverage option to combat fatigue and replenish energy levels.