Question 1

What is the minimum investment in fractional real estate with ZenithAbode?

Accepted Answer

The minimum investment is ₹1,000 per fractional unit. Most properties on our platform have unit sizes ranging from ₹25,000 to ₹50,000, allowing you to start with as little as ₹1,000 and scale up based on your budget. For example, our Prestige Tech Park deal in Whitefield, Bengaluru has units of ₹25,000 each.

Question 2

What returns can I expect from fractional real estate investment?

Accepted Answer

Based on 83 exited deals between 2022-2024, our platform has delivered an average IRR of 18.3%. Returns vary by property type: Grade-A commercial office spaces in Bengaluru and Mumbai delivered 19.2-22.7% IRR, while retail properties averaged 14.5-16.8% IRR. Rental yields typically range from 6.5% to 8.5% annually, with capital appreciation adding 7-12% per year based on location.

Question 3

How is ZenithAbode SEBI-compliant?

Accepted Answer

All our fractional real estate deals are structured as Category I Alternative Investment Funds (AIFs) under SEBI AIF Regulations, 2012. We hold SEBI registration number IN/AIF1/21-22/0847. This means every investment is regulated, with mandatory disclosure requirements, independent valuation by SEBI-registered valuers (like CBRE or JLL), and trustee oversight. Our legal structure ensures investor protection and transparent governance.

Question 4

What is the lock-in period for fractional real estate investments?

Accepted Answer

The standard lock-in period is 18 months from the date of investment. After 18 months, you can sell your fractional units on our secondary marketplace. The typical investment horizon is 5 years, but you have the flexibility to exit earlier (post lock-in) if you find a buyer. Our secondary market has ≈73% liquidity success rate with average sale time of 45-60 days.

Question 5

What fees does ZenithAbode charge?

Accepted Answer

We charge three types of fees: (1) Platform Fee: 1.5% one-time on your investment amount, (2) Annual Management Fee: 1.2% deducted from rental income for property management, and (3) Exit Fee: Zero rupees after the lock-in period. There are no hidden charges. For a ₹1,00,000 investment, you pay ₹1,500 upfront and ₹1,200/year from rental distributions.

Question 6

How do I receive rental income from fractional real estate?

Accepted Answer

Rental income is distributed quarterly (every 3 months) directly to your bank account via NEFT/IMPS. Distributions typically happen in the first week of January, April, July, and October. For example, if you own 10 units of a property with ₹780 rental income per unit per quarter, you'll receive ₹7,800 every quarter (minus 1.2% management fee). All distributions are credited automatically without any action needed from you.

Question 7

Which cities does ZenithAbode operate in?

Accepted Answer

We currently operate in 5 major Indian cities: Mumbai (37% of our properties), Bengaluru (28%), Delhi NCR/Gurugram (18%), Pune (11%), and Hyderabad (6%). Within these cities, we focus on premium micro-markets like Whitefield & Electronic City in Bengaluru, Lower Parel & BKC in Mumbai, Cyber City in Gurugram, Hinjewadi in Pune, and HITEC City in Hyderabad.

Question 8

What types of properties can I invest in?

Accepted Answer

We focus on Grade-A and Grade-A+ commercial real estate: (1) IT/ITES Office Spaces (58% of properties) - leased to companies like Wipro, TCS, Infosys, (2) Co-working Spaces (23%) - WeWork, Awfis, Cowrks, (3) Retail/Commercial (12%) - high street retail and shopping malls, and (4) Warehousing/Logistics (7%) - modern Grade-A warehouses. We do NOT invest in residential properties or under-construction projects.

Question 9

How long does it take to start earning returns?

Accepted Answer

Rental income starts flowing from Day 1 since we only list properties with existing tenants and active leases. Your first rental distribution will be in the quarter following your investment. For example, if you invest in January, you'll receive your first rental payout in April. Capital appreciation is realized when you sell your units (after 18-month lock-in) or when the property is sold (typically after 5 years).

Question 10

Is fractional real estate investment safe?

Accepted Answer

Fractional real estate carries market risk like any investment, but we mitigate risk through: (1) Only Grade-A properties with blue-chip tenants (90% occupancy minimum), (2) Independent valuation by CBRE/JLL/Knight Frank, (3) Legal due diligence by top law firms, (4) SEBI-registered structure with trustee oversight, (5) Diversification across multiple properties. Our historical default rate is 0.7% vs. industry average of 3.2%. However, property values can fluctuate, and past performance doesn't guarantee future returns.

Question 11

Can NRIs invest in ZenithAbode fractional real estate?

Accepted Answer

Yes, NRIs can invest subject to FEMA (Foreign Exchange Management Act) regulations. You need: (1) Valid PAN card, (2) NRE/NRO bank account, (3) Valid passport and OCI/PIO card (if applicable). Rental income will be credited to your NRE/NRO account with TDS deducted as per Income Tax Act. Capital gains are also subject to TDS. We handle all FEMA compliance and RBI reporting on your behalf.

Question 12

How is fractional real estate taxed in India?

Accepted Answer

Taxation has two components: (1) Rental Income: Taxed as 'Income from Other Sources' at your income tax slab rate (e.g., 30% if you're in the highest bracket). Standard deduction of 30% on rental income allowed. (2) Capital Gains: If you sell units after 36 months, it's Long-Term Capital Gains taxed at 20% with indexation benefit. If sold before 36 months, it's Short-Term Capital Gains taxed at your slab rate. We provide Form 16A for TDS deducted and annual tax statements for easy ITR filing.

Question 13

What happens if a tenant vacates?

Accepted Answer

If a tenant vacates, our property management team immediately markets the space for re-leasing. The typical vacancy period is 60-90 days for Grade-A properties in prime locations. During vacancy, you don't receive rental income for that quarter, but there are no additional costs (we cover marketing and maintenance). Properties with multi-tenant profiles minimize this risk. For example, if a 100,000 sq.ft. property has 5 tenants and one vacates (20,000 sq.ft.), 80% of rental income continues unaffected.

Question 14

How do I track my fractional real estate investments?

Accepted Answer

Your ZenithAbode dashboard provides real-time tracking: (1) Portfolio value updated monthly based on market valuations, (2) Rental income history with quarterly distribution dates, (3) Property performance metrics (occupancy rate, rental escalation), (4) Document vault with all legal documents, lease agreements, valuation reports, (5) Secondary market listings if you want to sell. You also receive quarterly investment reports via email with detailed performance updates and property news.

Question 15

What is the difference between fractional ownership and REITs?

Accepted Answer

Key differences: (1) Minimum Investment: Fractional ownership ₹1,000-50,000 vs. REITs ₹10,000-15,000 per unit, (2) Property Selection: You choose specific properties in fractional vs. REIT manager decides, (3) Returns: Fractional 18.3% average IRR vs. REITs 7-9% dividend yield, (4) Liquidity: Fractional secondary market (45-60 day avg sale) vs. REITs listed on stock exchange (instant), (5) Regulation: Both SEBI-regulated, fractional as AIF, REITs as InvITs. Fractional ownership gives you more control and historically higher returns; REITs offer better liquidity.

ZenithAbode

Frequently Asked Questions

What is the minimum investment amount?

What is the average IRR (Internal Rate of Return)?

Is ZenithAbode SEBI compliant?

What is the lock-in period?

What fees does ZenithAbode charge?

How is rental income distributed?

Which cities does ZenithAbode operate in?

What types of properties can I invest in?

How do I start investing?

What documents will I receive?

Can NRIs invest through ZenithAbode?

What if the property remains vacant?

How does ZenithAbode mitigate investment risk?

How is property ownership structured?

Who handles property management?

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