Fractional ownership: check the offer before you invest.
Platforms quote high yields. Homes in our cities earn a fraction of that. We check where the rent comes from, how the scheme is structured and what you can actually take home. We sell no units.
Gross yearly rent as a percent of price
These are different assets. Homes earn rent on a flat. The quoted range is for commercial properties and is a platform’s typical figure, not a guarantee. The point is the gap, and why it exists: ask for the lease.
What changed
SEBI now has a route for fractional ownership through small and medium REITs, called SM REITs. Platforms that stayed outside it were pooling money in private companies or LLPs with no SEBI oversight.
Read the table with care. Its source is an SM REIT manager, so it describes the alternative in less flattering terms. Check every row against SEBI’s own documents.
| Private fractional platform | SM REIT | |
|---|---|---|
| Structure | Interest in a private company or LLP that owns the property | Units held in a demat account under SEBI’s REIT rules |
| Minimum | About ₹10 to 25 lakh a unit | From ₹10 lakh a unit |
| Oversight | No SEBI oversight or mandatory trustee | Independent trustee and yearly valuation by a registered valuer |
| Exit | No market. Private sale, sometimes at a discount | Listed, so units can be sold on the exchange |
| If it goes wrong | Civil courts | Complaint to SEBI |
Sources:
Test a yield claim
Put in what the offer says. See what reaches your account after vacancy, fees and tax. Replace the example numbers with the ones in the offer document.
Red means you keep less than 70% of the claim. This is our arithmetic, and it ignores any rise or fall in the value of your units.
Six questions to put to any platform
If the answer is vague, that is your answer.
- Is this scheme registered with SEBI as an SM REIT? Ask for the registration number, then look it up on SEBI’s website yourself.
- Who is the trustee, and who values the property each year? A name and a registration, not a brand.
- Where does the rent come from? A signed lease with a named tenant, a lock-in and a rent increase clause, or a projection.
- What are all the fees? Entry, management, exit and anything taken from rent before it reaches you.
- How do I sell? Is the unit listed, at what volume, and at what prices has it traded?
- How is the income taxed? Ask for it in writing, then confirm with your accountant.
What we do
- Check the structure, registration and documents against public records.
- Test the yield claim against the lease and the market.
- Compare the offer with buying a home or holding a listed unit, on your numbers.
- Give you a written report for ₹9,999 an offer, fixed and agreed in writing before work starts.
What we do not do
- We do not sell units or send you to a platform for a commission.
- We do not tell you to buy a scheme. We are not a SEBI registered investment adviser.
- NRIs: investment must go through permitted banking channels under FEMA rules. Check your route with your bank.