Equity Address is enabling people to buy properties with fractional ownership

The real estate market, particularly during the pandemic, presented a challenging environment for investors seeking profitable returns. Four friends experienced firsthand the frustration of their real estate investments in the Delhi/NCR area, yielding less than 2% returns, significantly below their expectations. 

This situation highlighted a broader issue within the real estate investment landscape, where traditional investment avenues often fail to offer satisfactory financial returns. Additionally, the concept of investing in high-end vacation homes as an alternative presented its own set of challenges. 

Despite the allure of potentially higher returns and the enjoyment of luxury properties, the high cost of entry made such investments inaccessible to the average investor. 

This scenario underscored the need for innovative investment solutions that could provide both financial benefits and personal enjoyment without the prohibitive costs typically associated with high-end real estate investments. 

Furthermore, the market for fractional ownership of vacation homes, although promising as a means to democratise access to luxury real estate, was relatively underdeveloped and represented a small fraction of the overall market. 

Potential investors faced obstacles such as navigating the complexities of fractional ownership, managing shared property rights, and achieving a balance between personal use and investment returns. 

The lack of widespread awareness and understanding of fractional ownership benefits, coupled with the unorganised nature of the second home market, with its inconsistent pricing and regulatory challenges, compounded the difficulties for investors looking to explore this innovative investment avenue. 

These issues collectively pointed to a significant gap in the real estate market for solutions that could simplify and make accessible the benefits of investing in luxury vacation homes through fractional ownership.

Mohit Gupta, along with his three friends, Abhishek Madhukar, Puneet Gupta, and Aashish Raj, noticed a gap as their investments grew by less than 2% during the pandemic. This led them to start a venture that could fill this growing gap in the market. 

In 2021, they founded Equity Address, which allows people to buy properties varying from 2 BHK apartments to 4BHK private pool villas, with fractional ownership options. 

Who are the founders?

Mohit Prem Gupta is the co-founder and CMO of Equity Address. Equity Address wasn't Gupta's first venture. Previously, he co-founded The Venya and is actively working with the company as the Chief Marketing Officer (CMO). 

He has also worked at TheKnottyTales, Unilever, StitchMe, Futurebrands Consulting, Shiupra Estate, DLF Limited, Reliance Retail, and Landmark Group, mostly holding marketing leadership roles in these companies.

The Journey

Equity Address began its journey in 2021, founded by four friends—Mohit Gupta, Abhishek Madhukar, Puneet Gupta, and Aashish Raj—after they encountered disappointing returns on their real estate investments in the Delhi/NCR market during the pandemic. Seeking a more lucrative and enjoyable investment avenue, they envisioned a platform that could democratize the ownership of high-end vacation homes, offering both financial returns and personal enjoyment. 

This vision led to the creation of Equity Address, a Delhi-based tech-driven fintech platform that introduces a novel approach to fractional ownership, making luxury vacation homes accessible to a broader audience. 

Equity Address operates by offering tokenized ownership of premium vacation properties, allowing investors to co-own high-end homes with a fractional investment. This model not only reduces the financial barrier to entry for investors but also provides them with rent-free holidays and potential rental income, making it an attractive alternative to traditional real estate investments. 

Handling all aspects of the investment

The platform specializes in handling all aspects of the investment, from paperwork and asset valuation to ensuring clear title reports, significantly simplifying the process for investors. Equity Address's portfolio includes a range of properties, from 2 BHK apartments to 4 BHK private pool villas, with investment options starting from Rs 17 lakh. The startup's business model revolves around charging a platform fee from investors for the purchase and resale of fractional ownership, alongside earning management revenue from rental generation. 

Equity Address has also launched Venya, a hospitality platform that curates premium holiday properties for short-term rentals, further enhancing the value proposition for property owners and investors alike. Venya operates on a revenue-sharing model with homeowners, providing a seamless way to generate income from luxury properties without the hassle of property management.

Despite being bootstrapped with an initial investment of $100K from the founders, Equity Address has already generated $200K in revenue and plans to increase this figure in the coming year. 

The startup faces competition from both domestic and international players in the fractional ownership and vacation rental markets but sets itself apart with Venya's unique rental forecast feature, which estimates rental rates based on data analysis. 

Expanding portfolio

Looking ahead, Equity Address aims to expand its portfolio of vacation homes and attract more investors, with plans to secure additional funding to fuel its growth and expansion within India and eventually into MENA, SEA, and Europe. 

The company also intends to launch a Luxury Residence Fund, offering global co-ownership of luxury holiday homes and opening up international property investment opportunities to Indian investors. Through these initiatives, Equity Address seeks to redefine the landscape of vacation home ownership and investment, making luxury real estate more accessible and profitable for a wider audience.