You can own real estate with as little as Rs 1 lakh: Gen-Z’s new investment play
Gen-Z investors are increasingly turning to fractional real estate ownership as a smart, affordable way to diversify their portfolios. With investments starting from just Rs 1 lakh, many platforms are making real estate accessible to young earners. Experts say this shift is reshaping how India's digital-first generation approaches wealth building.
- Jul 16, 2025,
- Updated Jul 16, 2025 5:40 PM IST
With rising financial awareness, digital exposure, and the growing influence of hustle culture, Gen-Z is showing a strong appetite for alternative investments—particularly in fractional real estate. For a generation that values diversification and early wealth creation, the idea of "letting your money work for you" is more than just a buzzword.
“Traditionally, real estate was seen as an asset class for HNIs and UHNIs,” says Mananki Parulekar, Co-Founder, Claravest Technologies Pvt Ltd. “But with the rise of fractional ownership, even a 21-year-old earning their first salary can now start investing in property with as little as Rs 1 lakh.”
Born between 1997 and 2012, Gen-Z is entering the workforce with an eye for investments beyond fixed deposits. Parulekar points out that the trend toward fractionalization isn’t new—cryptocurrencies like Ethereum have already familiarized Zoomers with owning small units of large assets. “Just like you can own 0.01 ETH, now you can own part of a property and earn rental income from it,” she explains.
The appeal goes beyond returns. Many young investors have grown up hearing stories of relatives making fortunes through real estate. “We all know an uncle or aunt who bought a flat in a developing area and sold it for a huge profit,” Parulekar adds. “Fractional ownership gives Gen-Z a shot at being part of those success stories without needing to put in Rs 50 lakh or more.”
That said, Parulekar stresses the need for research before diving in. “Three words: research, research, research. Look at the platform’s credibility, the growth potential of the asset’s location, and the kind of property you’re investing in—commercial, residential or vacation home.”
Expected returns vary:
Commercial properties offer rental yields of 6–8% and appreciation of 7–8%.
Residential assets return 3–4% in rent with higher appreciation of 10–12%.
Vacation homes could fetch 7–9% in rent and 8–9% in appreciation.
Claravest's Parulekar says, allows first-time investors to get started with ₹1 lakh. The platform focuses on high-growth Tier-2 cities and rental-friendly vacation homes, giving Gen-Z a chance to earn rental income and long-term capital gains.
“This isn’t about flipping properties overnight,” Parulekar notes. “It’s about building a balanced, inflation-hedged portfolio that includes real estate along with equities, mutual funds, and gold. It’s real diversification for real people—without needing crores.”
With rising financial awareness, digital exposure, and the growing influence of hustle culture, Gen-Z is showing a strong appetite for alternative investments—particularly in fractional real estate. For a generation that values diversification and early wealth creation, the idea of "letting your money work for you" is more than just a buzzword.
“Traditionally, real estate was seen as an asset class for HNIs and UHNIs,” says Mananki Parulekar, Co-Founder, Claravest Technologies Pvt Ltd. “But with the rise of fractional ownership, even a 21-year-old earning their first salary can now start investing in property with as little as Rs 1 lakh.”
Born between 1997 and 2012, Gen-Z is entering the workforce with an eye for investments beyond fixed deposits. Parulekar points out that the trend toward fractionalization isn’t new—cryptocurrencies like Ethereum have already familiarized Zoomers with owning small units of large assets. “Just like you can own 0.01 ETH, now you can own part of a property and earn rental income from it,” she explains.
The appeal goes beyond returns. Many young investors have grown up hearing stories of relatives making fortunes through real estate. “We all know an uncle or aunt who bought a flat in a developing area and sold it for a huge profit,” Parulekar adds. “Fractional ownership gives Gen-Z a shot at being part of those success stories without needing to put in Rs 50 lakh or more.”
That said, Parulekar stresses the need for research before diving in. “Three words: research, research, research. Look at the platform’s credibility, the growth potential of the asset’s location, and the kind of property you’re investing in—commercial, residential or vacation home.”
Expected returns vary:
Commercial properties offer rental yields of 6–8% and appreciation of 7–8%.
Residential assets return 3–4% in rent with higher appreciation of 10–12%.
Vacation homes could fetch 7–9% in rent and 8–9% in appreciation.
Claravest's Parulekar says, allows first-time investors to get started with ₹1 lakh. The platform focuses on high-growth Tier-2 cities and rental-friendly vacation homes, giving Gen-Z a chance to earn rental income and long-term capital gains.
“This isn’t about flipping properties overnight,” Parulekar notes. “It’s about building a balanced, inflation-hedged portfolio that includes real estate along with equities, mutual funds, and gold. It’s real diversification for real people—without needing crores.”