Next time, plan a holiday home with friends

Fractional ownership of holiday homes - from flats to condominiums and villas - has emerged as a preferred choice of consumers seeking to purchase a second home, according to real estate experts.

After the pandemic increased demand for holiday properties, many companies providing fractional ownership have stepped up to assist buyers in owning a luxury home for one-eighth of the cost of purchasing one outright.

"The concept is still at nascent stage in India and with more companies offering fractional ownership of a holiday home, it will increase the acceptability. Places like Goa, Alibag, Shimla, Nainital and Kerala are the few destinations which will make this concept popular," said Shravan Gupta, cofounder and chief executive of Yours, a fractional holiday home company.


The concept permits several people to buy a house jointly as co-investors through a management firm. The investor in a co-owned property can exchange that piece of real estate like any other.Some organisations acquire properties and then sell to investors with no rental return, while some others market properties and sell them to investors with a rental return.

"Till date we have a real estate mandate of Rs 25 crore. We have a plan of acquiring Rs 100 crore of properties by the end of 2023 in holiday homes markets in India like Goa, Alibag, Lonavala and other second home destinations," said Mohit Gupta, Co-founder, Equity Address.

The company is planning to explore several second home real estate options to meet the demands of people aspiring to own a second home ranging from ₹2 crore to ₹8 crore, with investments starting as low as Rs 20 lakh per investor.

"We are looking to raise equity of $2.5 million and $10 million debt from investors for growth," Gupta said.

ALYF, another holiday home platform, has seven villas with shares starting at Rs 36.36 lakhs in North Goa's prime locations. The team received 54 expressions of interest within a week of announcing the project.

"Our vision is to make holiday homes accessible for the middle and upper-middle class. Smart ownership is the new way to own holiday homes," said Saurabh Vohara, founder & CEO of ALYF.

A study shows that holiday homeowners do not use their properties for more than 30 days a year.Fractional ownership model divides the property into often eight shares which reduces the investment amount while also splitting the days of usage among the owners.

In addition to this, the service providers also facilitate rental earnings from these homes while also completely managing and maintaining the homes.