The Best Exit Routes for CRE in Fractional Ownership

A good investment strategy is indispensable when it comes to building a good investment portfolio. Having a proper investment strategy gives investors the confidence to play with high risks at their own expense and generate high returns.

Share on facebook
Share on twitter
Share on linkedin
shutterstock 1700113075 min

An investment is only good enough as long as it gives high returns, in the context of real estate investments via fractional ownership, planning an exit route becomes very easy.  Investments don’t remain profitable forever, even a Commercial Real Estate property could lose its relevance with time and the property becomes illiquid, hence withdrawing your money is just as important as investing it in the first place.

Fractional Ownership – Advantages

Fractional ownership investments are gaining a reputation for being highly profitable and liquid investments. Their popularity is also owed to the various perks it comes with –


As commercial fractional ownership investments usually involve dealing with A-Grade properties and that too at a very small fraction of the price, they become  pocket-friendly investments as the investment management funds and risks are shared amongst all investors.


The company you invest through takes care of your investments, manages your asset and also makes sure that the company is in profits. Not just that, good fractional ownership companies such as Assetmonk also perform the due-diligence procedure beforehand so that the investor doesn’t have to bother with the investment procedure.

High returns

Investment in A grade properties gives high returns, the returns usually range between 12-21%.

Portfolio diversification

With fractional ownership, you get the ease to purchase properties anywhere in the world and at very low prices. This gives investors an opportunity to diversify their portfolio not just in an economic context but also geographically.


The Exit Strategy– Traditional real estate vs. fractional CRE property

Although real estate properties are highly appreciative and the investment profitable, exiting a real estate investment is considered difficult  because of the lengthy procedure involved in traditional investment.

Since fractional ownership basically makes the whole process much easier, here is a comparative study of how investments in commercial real estate have evolved.


Traditional CRE

CRE via Fractional ownership

Investment amounts

These require large sums of money, generally hundreds of crores, an investor might have to, either submit the large corpus or take loans from a bank.

CRE via fractional ownership doesn’t require investors to take loans or even invest a huge amount. Making the investment easier.

Exit Strategy

The first priority of an investor is to earn back the loan amount. And then generate profit.

Here an investor doesn’t have to worry about paying any loan.


An exit plan mostly involves either selling off the property or taking a new loan from the bank.


Asset Liquidity






As a commercial real estate property is not a small investment, an investor has to start planning 12 months prior to his actual exit.


Traditional commercial investments are illiquid and an investor will have to have his property in mint condition and also in demand for any investor to even consider.

In fractional ownership, on the other hand, the exit plan can be initiated today and in a maximum of 3 months, your share of the property will be sold off.


When it comes to their fractional ownership clients, Assetmonk, also holds internal sales to speed up the process.

This way the property is either sold to an existing investor or the company purchases it.



The Best Exit Route in Commercial Real Estate Via Fractional Ownership

From the above assessment, by now, you must have an idea as to why exiting fractional ownership is much easier when compared to traditional real estate. The simplest and the most efficient exit strategy in fractional ownership is to withdraw the money when you need it, when the investment has surpassed.

You might want to exit a fractional investment because the property isn’t performing well, and you wish to explore other properties, or the project has hit its peak and can dwindle any time now. In most of the cases, an investor must beware and keep their eyes open to the changing real estate trends. Coworking spaces are popular today, but they may not be ten years from now, and so when you invest in these properties, the best exit strategy could be to understand what’s new and in demand.

You can easily auction your share or portion of the property or transfer it to another fractional owner via your investor portal, and since the amount is in some lakhs, it will only take a couple of months for you to get sell it off.

Fractional Property Ownership in India

Fractional ownership is new to India, this means even if fractional platforms offer highly liquid cost-efficient deals, many investors will be wary of going forward with these investments.

As more and more MNCs move to India, we expect the prices and demand for commercial real estate to go up, now as fractional ownership gains experience of the Indian landscape and investors, the whole CRE investment via fractional ownership could expect a boom by 2030.

We can see instances of it in cities like Bangalore, Chennai and Hyderabad already. The customer first policies that we have incorporated at Assetmonk have attracted a lot of clients, not just that, we also aim at providing A-Grade, High-end investment deals to all investors at an IRR of up to 21%. Contact us in case of any queries. 

Best Exit Routes for CRE in Fractional Ownership FAQ'S

In CRE fractional ownership is when multiple investors pool their assets to purchase a commercial property. This could be a hotel, office building etc.

Fractional ownership deals for CRE are usually listed in FOPs (Fractional ownership platforms) visit their pages to find good deals. 

You can also visit the Assetmonk website to get an understanding of what the deals might look like.

Related Articles

istockphoto 155700839 612x612 1

Rental housing demand will increase in crucial micro markets

The real estate market has exploded in the post-pandemic era. The corporate market is increasing, increasing demand for commercial space and rental residences. According to industry statistics, in the second quarter of this year, Indian rental home searches climbed 84.4% year on year and 29.4% sequentially. Furthermore, total combined rental housing listings rose 3% quarter on quarter and 28.1% year on year throughout the 13 Indian cities covered. Do not miss The 18% GST on rent gets anticipated to harm the rental housing industry. But, what are the variables that will lead to the rental housing demand boom? Accessibility and cost-effectiveness: When it comes to renting a property, people primarily examine three factors: infrastructure, connection, and price. The property’s location, with ready infrastructure and decent connection, takes precedence over the size and price of the unit. Customers want a home in a prominent location that allows them to maintain a good work-life balance, with less commuting time, easier access to…

Read more
istockphoto 1393356971 612x612 1

REITs, New Age Instrument: Investing in Properties Without Actually Investing in One

Real estate investing always meant purchasing, owning, and managing an actual property. But, did you know that it can still be done without actually owning the property? Thanks to REITs, investors need only put their money into corporations that possess substantial portfolios of self-appreciating real estate assets in some of the world’s most desired locales. Welcome to the world of REITs where you can buy real estate without the inconvenience of owning the property altogether. Easy peasy lemon squeezy right? Real estate investment trusts are popular among investors who wish to buy real estate without the inconvenience of owning the property altogether. These investments, known as REITs, allow investors to deposit money into income-producing real estate. A REIT is best described as a simple way to own real estate without actually purchasing any property. Investors can acquire individual shares of a real estate investment trust, similar to stocks, which gives them little chunks of several properties. This protects them from…

Read more
istockphoto 1394977436 612x612 1

Commercial Real Estate Leases: Different Types and Which Is the Best?

Leasing commercial space is a significant financial commitment and requires commercial real estate leases. These leases can be intimidating, especially because they are a huge commitment that can be costly. However, they are not as difficult as many people believe. A commercial real estate lease, like most other legal transactions, should not be taken lightly. As a result, when renting commercial space for the first time, it is critical not only to thoroughly study the industry but also to have a good understanding of the many forms of commercial leases accessible in India. Also, read Commercial Real Estate Is Booming In 2022: Explore How You Can Also Profit Via This Alternative Investment. Here’s an explanation of the many forms of commercial real estate leases and what they imply for renters and landlords: Firstly, what are commercial real estate leases? Commercial leases, as opposed to residential leases, are an arrangement between a renter (company) and landlord that specifies the property only…

Read more
istockphoto 817688664 612x612 1

The Indian real estate market would be worth $1 billion by 2030: RBSA Advisors

According to RBSA Advisors, the real estate business gets expected to grow by 15% by 2030, reaching $1,000 billion. According to RBSA Advisors, the Indian real estate sector would grow at a 15% CAGR from $60 billion in 2010 to $1,000 billion by 2030, contributing 13% of the country’s GDP by 2025. The organized retail real estate industry get expected to rise by 28% to 82 million square feet by 2023. Per “The Outlook of the Real Estate Sector in India,” the Indian real estate sector is showing strong indications of recovery as the economy recovers from the pandemic. Also, read JLL reports Indian real estate garnered $943 million in investments worth in Q1 2022. Despite a little increase in prices and a slight increase in home loan interest rates, the real estate industry has thrived on good buyer enthusiasm. According to the poll, there is substantial demand for property in Delhi-NCR across all price levels. The entire increase in…

Read more
istockphoto 1394786542 612x612 1

Aspire to be A Top Commercial Real Estate Agent? Here are Some Critical Steps To Becoming One

Do you want to be a successful commercial real estate agent? The Indian real estate market is diversified but vibrant and competitive, particularly for commercial real estate agents. To build a successful niche, they must comprehend the shifting promotional circumstances of developers as well as customer preferences. Staying current and afloat in the market requires innovation and openness to new marketing concepts. Follow the steps below to be a top agent. Do you want to be a successful commercial real estate agent? If this is the case, the first question you must answer is whether you want to work in commercial or residential real estate. To be sure, because individuals are more likely to buy or lease a place to live rather than a location to operate a company, it is simpler to get into residential real estate – where there will always be more prospective clients and transactions. Commercial real estate, on the other hand, may attract a large…

Read more
istockphoto 1263914795 612x612 1

Real Estate Investments: The Hottest Alternative Investments You Do Not Want To Miss Out

One of the best ways to grow your money in the modern era is by making investments. Whether small or large, every investment has got the potential to be a profitable one. It wasn’t long ago that people only knew about the stock market as a primary investment method. But, this has changed pretty much with the arrival of better technologies for making investments and making profits out of them. The hottest topic in the domain of investments is the growing popularity of alternative investments such as real estate. The real estate industry has been in existence for a long time, but it has changed a lot from its original form. Better alternative investments are emerging in real estate, mostly due to innovations introduced by technical firms. There’s still much to learn about this, so don’t worry. We have explained everything about this trending topic in this blog post. Do not miss Aspire financial freedom. Find Out How Real Estate Investment…

Read more