Part 2/10:
At its core, fractional property investing involves purchasing a portion or "fraction" of a property. Unlike traditional real estate investment, where an individual buys the whole asset, this model enables investors to acquire smaller shares, thereby reducing the capital outlay required. The main purpose of these investments is to generate returns, whether through rental income, appreciation, or both.
While the idea isn't entirely new—large institutions such as pension funds and sovereign wealth funds have long invested via real estate funds managed on their behalf—the recent proliferation of fractional platforms has made this accessible to individual investors. It creates a bridge for those who might otherwise find high-end properties inaccessible due to financial constraints.