Hi,

I wish to understand if crowdfunding in real estate is legally permissible in India? Many startups have come up in USA which are providing a platform for retail investors to invest in properties on per sq ft basis (Fundrise.com, Groundfloor.us, Crowdbaron.com to name a few).

This is how it works:
1) Developer wants to raise funds. Typically he goes to High-net Worth Investors, Banks for loans etc.
Instead he lists his properties online and sell it on a per sq ft basis.
2) Normal people can buy property on per sq ft basis (They don't own the property physically, but just the equity/shares in the project).
3) Later they can sell it on profit.

Smartowner.com is trying to do this, but their model is not very clear to me.

Some help will be highly appreciated.

Thanks.

Prashant
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  • Crowfunding in Real Estate will be great, since I too need funds to develop my property. If there is anything of those sort, do let us know please.
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