How Investors Make Money From Fractional Real Estate
There are two possible sources of return — rental income and capital appreciation — and neither is guaranteed. Here's how each is actually measured.
Two separate things: income and appreciation
Rental income is the cash a property earns from tenants, distributed periodically. Capital appreciation is a possible increase in the property's value, only realised if and when it's sold. A property could deliver strong rental income and flat value, or the reverse — the two do not move together.
Gross yield, net yield and cash yield
Gross Yield is annual rent divided by property value — a starting point, before any costs.
Net Yield subtracts property-level expenses first — maintenance, tax, insurance, management — which is a more realistic figure.
Cash Yield goes one step further and reflects what an investor actually receives after the platform's own fees, which vary by property and are disclosed separately.
Try it yourself
Move the sliders to see how property value, rent and expenses change gross and net yield. The starting numbers match the worked example used elsewhere in these guides.
A 6.00% gross yield does not mean a 6.00% investor return — ₹1,00,000 of property-level expenses bring the net yield down to 5.00% here. This does not include the platform's own acquisition, administration or performance fees, which are disclosed separately on each property.
Educational Simulation — calculations are illustrations only, not a return prediction or a guaranteed investment outcome.
What about total return?
Total return combines net rental income received with any capital appreciation realised at exit, typically expressed as an annualised figure (an IRR). Because both income and property values can go down as well as up, total return is never known in advance and is not guaranteed.
Educational content only, not investment advice. Rental income and property values are not guaranteed and can go down as well as up.