Fractional Real Estate Investing: An Evolved Market

Properties’ prices have been going through the roof for some time now. Thinking about it, it is a double-edged sword, because despite being high-cost, flexible and long payment plans are now available too. But..something else has emerged for those looking for real estate investment opportunities, fractional investing!

This article will be your comprehensive guide to the meaning of fractional investing in real estate, how it emerged, its pros and cons, its impact on the Egyptian economy, and most importantly, how it benefits you. We will also tell you how to start your fractional real estate investing journey.

Fractional Real Estate Investing

If you are thinking, “Real estate investment made easy? Is this possible?”, then this article is for you because the answer is “Yes!”. But before getting into details of how, we need to dig deep into the nature of fractional real estate investing, and we will start with what it means.

Inflation rates are increasing and investing in something that will increase in value over time has become essential. Real estate investment is one of your best options for a high ROI, but with the escalated increase in unit prices, it was betokened as a tough step.

Fractional real estate ownership has made it easier though. 

When a group of real estate investors share a property, this opposes the well-known traditional investment. Fractional investing allows them to not only split the losses and the acquired revenue but also the initial payment and any additional prices.

Fractional investing in real estate means you can now own a percentage of a property. For example, if you pay 30% of the total price of the unit, then you own 30% of it. It is unlike the traditional investment way in several aspects, for instance:

• Lower down payment
• All costs are a shared responsibility
• The profits are sorted out according to every investor’s share percentage

Fractional Ownership: Revolutionizing Real Estate Investment

With the elevated prices, high inflation rates, and investors wanting to diversify their investment portfolio, fractional real estate investing has emerged. Such opportunities aren’t only for expert investors but also for first-timers who are scared of taking this risk.

Fractional investing in the elite areas and the new cities in Egypt with a variety of distinctive real estate projects, such as New Cairo, El Sheikh Zayed, and the New Capital City, has many benefits. We will tell you all about it right away.

The Pros and Cons of Fractional Investment

Fractional investing in real estate carries many advantages, which are:

• You can start your investment journey with less capital.
• New launches would be of greater benefit.
• In the case of rentals, you will receive passive income.
• Costs and responsibilities would be divided according to the percentage you own in the unit, such as interest rates and property management.
• Limits your loss in case of any loss of value or drawbacks.
• Diversification which is a major component in investors’ risk management plans.

On the other hand, there are some downsides for fractional real estate investment, for instance:

• It is less flexible when it comes to managing your assets.
• Limited control over managing your property, such as making alterations.
• It reduces the risks, yes, but also the rewards, since you will only gain the benefits of your shared percentage.

Weighing the pros and cons of fractional investing in the real estate markets, whether residential or commercial, is a vital step before getting on the road.

Not to mention that fractional real estate investment benefits the country’s industry and economy as well as you personally.

How Fractional Real Estate Investing Influences the Egyptian Market

Investment opportunities play an important role in the sustainable growth of the real estate industry in Egypt. With the increase in demand for modern residential and commercial properties within cutting-edge projects, sales elevated.

And this is definitely reflected in the country’s economy!

Real estate funds have risen to facilitate others’ fractional investments, allowing first-timers as well as keen investors and organizations to own a part of a property or a mall.

The progression of the real estate market in Egypt and its boundless fractional and full investing opportunities drove the economic status of the country upwards.

The real estate industry in Egypt is rich with various luxurious projects, benefiting your fractional investing opportunity, and they include:

• SouthMed City in the North Coast by Talaat Mostafa Group (TMG) Holding
• Crescent Walk by Marakez
• Playa Ras El Hekma by G Developments

With such a heightened market, you must be wondering how can you start fractional investing in a real estate property. Nawy will tell you in a few moments.

How to Start Fractional Real Estate Investing

Kickstarting your fractional real estate investing journey may seem like a complicated process, but Nawy will simply explain it to you.

Nawy Shares grants you a unique opportunity to own shares in one of the properties listed on the app/website in many of the smartly picked units in various real estate projects. They are picked to ensure the highest return on investment for you. They are usually in the new compounds or business complexes built within prestigious locations.

You can now put your money on a fractional investing opportunity in some of the best real estate developments in Egypt, and simply track your income and your ROI.

Less funds are no longer a problem to start your investment journey!

If you want to know more about Nawy Shares and how to start, check out this blog:

Finally

The real estate market is an evolving market, but its prices keep skyrocketing, that’s where fractional investment opportunities are the solution. Kickstarting such a process is hard, and you need to not only understand its benefits and downsides but also weigh them and decide whether it is for you.

Are you ready to start the process of fractional real estate investment?

Then sign in to the Nawy Shares website, check out the listed properties that you can invest in, and kick off your investment voyage.