For decades, real estate in India was treated as a ‘monolithic’ asset, a bulky, illiquid purchase that often demanded a lifetime’s savings. However, a structural pivot is underway, supported by the growing financialisation of property through REITs, fractional ownership models, and digital distribution platforms. The great Indian property dream is being recalibrated into a more technical financial strategy.
Modern investors, particularly affluent urban professionals who account for a significant share of India’s investable surplus, are increasingly viewing property through the lens of ‘outcomes.’ Whether it is a predictable income stream through yield-generating assets, long-term capital stability for retirement, or structured exposure to high-growth infrastructure corridors via regulated vehicles, real estate is being financialised.
The end of the ‘All-or-Nothing’ era: A 2026 perspective
Historically, real estate was an ‘all-in’ bet. An investor either owned a whole unit or owned nothing. This ‘asset-heavy’ approach created concentration risk and limited participation in commercial and luxury segments for many middle-class individuals.
The emergence of fractional ownership and tokenisation on platforms like ALT DRX has altered the entry math. In 2026, real estate is increasingly viewed as ‘fractional and fungible.’ Instead of locking capital into a single residential unit, the model allows for allocation across a diversified basket of assets:
- Grade-A office space: Tapping into India’s office market, which saw gross leasing reach nearly 86.4 million sq. ft across top cities in 2025.
- Industrial warehousing: Utilising the institutional expansion following the full implementation of the National Logistics Policy.
- Managed holiday homes: Accessing yield-generating assets in high-demand micro-markets like Goa, which records an annual yield of 8-9%.
By treating property as a portfolio of ‘tokens’ rather than a singular physical burden, the focus moves from ‘owning an asset’ to ‘tracking a financial target.’
The strategy of outcome-led investing
In 2026, the industry conversation has moved away from ‘square footage’ toward ‘financial performance.’ Digital platforms enable this by categorising real estate based on specific risk-reward outcomes.
1. The yield-seeker: Analysing rental benchmarks
As of the RBI Monetary Policy Committee (MPC) meeting on February 6, 2026, the policy repo rate remains unchanged at 5.25%. While this offers stability, it has also influenced returns on traditional fixed-income instruments. 10-year G-Sec yields are currently hovering around 6.6-6.7%, while traditional bank Fixed Deposits (FDs) generally offer between 6% to 6.75%.
In contrast, commercial real estate (CRE) continues to show a distinct yield spread. Data from early 2026 indicates that while residential rental yields in metros remain at 2%–3%, fractional commercial assets are delivering 8%–10%. For those seeking a regular income, tokenised assets in buildings tenanted by Global Capability Centres (GCCs), which now account for nearly 40% of premium office absorption, can provide relative income stability, particularly in assets backed by long-term institutional leases.
2. The inflation hedger: Hard assets with digital agility
Real estate is traditionally considered an inflation hedge, but its historical lack of liquidity often neutralises its benefits. Tokenisation addresses this by allowing participation ‘by the square foot.’ This enables incremental increases in exposure as income grows, similar to a Systematic Investment Plan (SIP). If the Consumer Price Index (CPI) fluctuates, the underlying asset value and contractual rental escalations (typically 15% every 3 years) help preserve purchasing power.
3. The legacy builder: Institutional asset management
Operational friction, such as property taxes, tenant management, and maintenance, has long been a deterrent. In the outcome-led model, the platform and its professional asset managers handle these complexities. The SM REIT (Small and Medium REIT) framework has gained significant traction, with a market potential estimated to exceed $60 billion as it brings institutional-grade management to smaller assets.
The ‘trust revolution’: Regulatory maturity and blockchain
The shift toward goal-based investing is underpinned by the regulatory evolution of SEBI’s SM REIT framework. This framework mandates that schemes have an asset size between ₹50 crore and ₹500 crore, with a minimum of 200 unitholders. This raises the bar for asset quality and holds the platform accountable.
ALT DRX utilises Blockchain technology to address the fundamental issue of liquidity:
- Immutability: A permanent, blockchain-backed record of ownership for every token, aimed at reducing the risk of title disputes.
- Transparency: Access to occupancy rates and audited rental distributions via a secure investor dashboard.
- Secondary market potential: The reclassification of REITs as equity-related instruments has deepened market participation, allowing tokenised shares to be traded with more agility than physical property.
Tax and cost efficiency: The 2026 fiscal lens
Outcome-led investing also emphasises fiscal optimisation. Traditional property ownership involves high stamp duty (typically 5–7%) and registration charges, which are high entry costs.
In the tokenised model:
- Lower entry cost: The platform manages primary acquisition costs, which are distributed across fractional owners.
- Simplified exit: Selling a physical home in 2026 involves brokerage (1–2%) and legal fees. In contrast, transaction fees for digital tokens are generally lower, affecting the final net return.
Crucially, the Budget 2026 has updated the fiscal framework for this model. Under the current tax code, physical property owners are taxed at a flat 12.5% LTCG without indexation benefits. However, because tokenised assets like SM REITs were reclassified as equity-related instruments, they follow a different tax path. Investors qualify for the long-term rate after 12 months (versus 24 months for physical property). They can utilise the ₹1.25 lakh annual exemption on gains, which impacts the post-tax outcome for retail portfolios.
The behavioural shift: From speculation to ROI
The most significant change, however, is psychological: investors are replacing speculative ‘fear of missing out’ with a focus on ROI (Return On Investment). This is driven by an ‘EMI-native’ generation; according to the February 2026 BASIC Home Loan report, Millennials and Gen Z now account for 90%–95% of home-loan demand, with 72% of these buyers under 40 preferring end-to-end digital applications. These modern investors often maintain a functional separation between their primary residence (a consumption asset) and their fractional holdings on platforms.
Rather than waiting decades to accumulate a full purchase corpus, many utilise fractional tokens to build real estate equity over time. By the time the average buyer enters the market at age 34 (down from 38 just six years ago), real estate holdings have often functioned as a self-funding savings vehicle for future goals.
The road ahead: From bricks to bytes
As we move through 2026, the ‘asset-heavy’ model is becoming less prevalent. The Indian real estate sector is projected to reach a market size of $970 billion by 2030 (up from the $290 billion estimate of 2025). However, the methods of ownership are evolving.
The democratisation of real estate means that professionals can now co-own portions of premium commercial developments with the same procedural ease as a mutual fund. By addressing the capital intensity of traditional property, platforms like ALT DRX allow investors to focus on the financial outcome of the asset class, underscoring how ownership itself is being redefined in a more financialised real estate ecosystem.
