Buying an entire house is impossible…but what if it is just part of it? “Fragmental ownership” is gaining momentum with the real estate crisis

In a scenario where the real estate market is increasingly inaccessible to many, an emerging trend is emerging that offers an alternative and innovative solution: the so-called “fractional ownership”. This concept, which has gained global attention, allows investors to acquire a small portion of a property, rather than purchasing the entire property.

Fractional ownership refers to a situation in which distinct parts of an asset or property are owned by different individuals or entities, rather than a single owner with full ownership. Each owner owns part of the property, usually for weeks or months, and shares the use and associated costs with the other co-owners.

This model has particularly attracted those who want to invest in high-value properties, effectively enjoying the benefits, without all the financial burdens associated with full ownership.

In the United States, where a shortage of affordable housing and rising interest rates have made homebuying more difficult, fractional ownership has become particularly attractive. With the average price of single-family homes approaching $400,000, many individuals are being shut out of the traditional real estate buying and selling market, Wired reports.

Thus, companies such as Pacaso, Arrived, Lofty and Mogul have emerged in response to this demand, offering real estate investment opportunities at a fraction of the traditional cost. These companies allow investors to buy shares or tokens in real estate with investments of up to €50, democratizing access to the historically elite market.

Despite concerns about the lack of control over property management and the associated financial risks, many see fractional ownership as a way to make the housing market more accessible and inclusive.

Nancy, an investor who shares a luxury home in Vail, Colorado, with other owners, describes the experience as a way to enjoy the benefits of a vacation home without the burden of maintenance and repairs. “When I go there, I feel like it's really ours,” she says.

While partial ownership offers clear advantages, it is not without challenges. Critics argue that this trend may intensify the commoditization of housing and worsen the housing crisis by putting home ownership beyond the reach of ordinary people.