Data-backed insights revealing how fractional ownership is reshaping real estate investing and creating new wealth-building opportunities
Fractional real estate investing has transformed from a niche concept into a mainstream wealth-building strategy. With the global fractional ownership market reaching $8.2 billion in 2025 and over 6.3 million registered users across leading fractional ownership platforms globally, the shift toward accessible property ownership is undeniable. Platforms like mogul, founded by former Goldman Sachs executives with $10 billion in collective deal experience, are delivering institutional-quality returns averaging 18.8% annually while eliminating the traditional barriers of massive down payments and property management headaches.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Key Takeaways
- Market growth is accelerating rapidly: The fractional ownership market is projected to reach $21.6 billion by 2034, growing at an 11.3% compound annual rate
- Barriers to entry have collapsed: Average investment portfolios grew from $3,200 to $5,800 between 2022 and 2025, demonstrating accessibility
- Institutional-quality selection matters: mogul's rigorous due diligence process approves less than 1% of properties reviewed, ensuring only high-potential investments reach investors
- Technology reduces costs significantly: Blockchain tokenization cuts transaction costs by 30-40% compared to traditional property transfers
- Younger generations are driving adoption: 64% of millennials express strong interest in real estate investment as a wealth-building tool
The Growth of Fractional Real Estate Investing Platforms
1. Global fractional ownership market valued at $8.2 billion in 2025
The fractional ownership sector has achieved substantial scale, reaching a market valuation of $8.2 billion in 2025. This growth reflects increasing investor appetite for accessible real estate exposure without the traditional capital requirements of direct property ownership.
2. Market projected to reach $21.6 billion by 2034 at 11.3% CAGR
Long-term projections indicate the fractional ownership market will grow to $21.6 billion by 2034, representing an 11.3% compound annual growth rate. This trajectory positions fractional investing as one of the fastest-growing segments in alternative investments.
3. Fractional real estate platform market hit $4.2 billion in 2025
The technology platforms facilitating fractional investments specifically reached $4.2 billion in market value in 2025. These platforms handle everything from property selection to investor distributions, creating seamless ownership experiences.
4. Platform market expected to reach $14.8 billion by 2034 at 15.1% CAGR
The platform segment demonstrates even faster growth than the broader market, with projections of $14.8 billion by 2034 at a 15.1% compound annual rate. This outpaces overall market growth, indicating accelerating technology adoption.
5. Real estate crowdfunding market was valued at $22.1 billion in 2025
The real estate crowdfunding market was valued at $22.1 billion in 2025. This scale demonstrates strong investor demand and platform scalability.
Average Annual Returns in Fractional Real Estate
6. Well-selected properties generate 8-15% combined annual returns
Investors in fractional real estate can expect combined annual returns of 8-15% for carefully vetted properties in growth markets. These returns include both rental income distributions and property appreciation.
7. Leading fractional platforms self-report strong annual returns
mogul's investment properties demonstrate even stronger performance, with a self-reported 18.8% average annual return / IRR as of Apr. 30, 2025, driven by institutional-grade selection processes and professional property management.
8. Commercial fractional investments yield 6-10% annually
Commercial properties within fractional portfolios typically offer income yields of 6-10% annually, benefiting from institutional tenants and triple-net lease structures that provide stable, predictable cash flows.
9. Platform-managed properties exceed 93.2% average occupancy rates
Strong operational performance underpins these returns, with average occupancy rates exceeding 93.2% across platform-managed residential properties in 2025. High occupancy translates directly to consistent monthly distributions for investors.
10. Fractional stakes retain 85-95% of value over 5-year holding periods
Long-term value preservation remains strong, with average fractional ownership stakes in prime markets retaining approximately 85-95% of invested value over five-year holding periods, even accounting for market fluctuations.
Accessible Entry Points for Real Estate Investing Beginners
11. Average portfolio sizes grew from $3,200 in 2022 to $5,800 in 2025
The accessibility of fractional investing is evident in portfolio data. Average investment sizes among individual investors grew from $3,200 in 2022 to $5,800 in 2025, providing meaningful exposure without requiring hundreds of thousands in capital.
12. Over 70% of new users are first-time alternative asset investors
Fractional platforms are opening doors for newcomers, with over 70% of new users being first-time alternative asset investors. This statistic underscores how fractional investing democratizes access to institutional-quality real estate.
13. Individual investors represent 53.7% of platform transaction volume
Retail participation dominates the space, with individual investors constituting 53.7% of total platform transaction volume in 2025. This majority share demonstrates that fractional investing resonates most strongly with everyday investors seeking wealth-building opportunities.
14. Homeownership likelihood dropping to 33.9% by 2025 for average renters
Traditional paths to real estate ownership are closing. The likelihood of homeownership for the average renter is projected to drop to 33.9% by 2025, compared to 52.6% in 2019. Fractional ownership provides an alternative wealth-building path.
Understanding Fractional Property Selection Statistics
15. mogul approves less than 1% of properties reviewed
Rigorous selection separates successful platforms from mediocre ones. mogul says less than 1% of properties pass its diligence process. Its process includes proprietary underwriting, a monthly buy-box sent to inventory partners, qualitative review, inspections, and final investment-committee scrutiny. This selectivity ensures only properties with maximum upside potential reach investors.
16. Property values advanced 5.3% year-on-year globally
Real estate fundamentals remain strong, with property values advancing 5.3% year-on-year across prime global markets. This appreciation compounds with rental yields to drive total returns.
17. Rental yields in prime global cities hover around 4-7% annually
Cash flow generation provides consistent income, with rental yields in prime global cities ranging from 4-7% annually. mogul offers short-term rentals, long-term rentals, sale-leasebacks, and mid-term rentals, and states that Airbnb-listed SFRs may offer higher income potential when professionally managed.
User Demographics and Investment Behavior
18. 6.3 million+ registered users across leading platforms globally
The fractional investing movement has achieved significant scale, with over 6.3 million registered users across leading platforms globally as of 2026. This user base continues expanding as awareness grows.
19. 64% of millennials express strong interest in real estate investing
Younger generations recognize real estate's wealth-building potential. Approximately 64% of millennials (ages 28-43) and 58% of Gen Z adults express strong interest in real estate as an investment vehicle.
20. Over 70% cite capital constraints as primary barrier to entry
Despite strong interest, over 70% of millennials and Gen Z cite capital constraints as the primary barrier to real estate investment. Fractional platforms directly address this challenge by eliminating massive down payment requirements.
21. Platforms report 40-80% year-over-year user growth rates
Adoption continues accelerating, with major platforms reporting year-over-year user growth rates of 40-80%. mogul reports 13,000+ investors on the platform. mogul also reports that 90% of investors invest a second time, and when they do, their second investment is 3x their first.
22. Mobile application downloads surpassed 5 million collectively
Mobile-first investing has arrived, with mobile app downloads surpassing 5 million collectively across leading platforms by 2025. Digital-native investors expect seamless, on-demand access to their portfolios.
Comparative Performance: Fractional Real Estate vs. Stock Market
23. Single-family rentals returned 39% more than the S\&P 500 annually (1993-2023)
Historical data validates real estate's outperformance. According to Federal Reserve and Case-Shiller Home Index data spanning over 50 years, single-family rentals returned 39% more than the S\&P 500 on an annual basis from 1993 to 2023.
24. Real estate offers four distinct wealth-building mechanisms
Unlike stocks that rely primarily on price appreciation, real estate provides four pillars: monthly rental income, property appreciation, tax advantages including depreciation, and accretive leverage benefits
25. Investor involvement in U.S. home purchases climbed to 27% in Q1 2025
The investor class is expanding rapidly. Investor involvement in U.S. home purchases climbed to 27% in Q1 2025, up from an 18.5% average over 2020-2023.
26. 30% of single-family home purchases made by investors in early 2025
By early 2025, 30% of single-family home purchases were made by investors, demonstrating professional capital's growing presence in residential markets.
Technological Integration: Blockchain and Automated Valuation
27. Blockchain tokenization reduces transaction costs by 30-40%
Technology innovation drives efficiency gains. Blockchain tokenization reduces transaction costs by an estimated 30-40% compared to conventional property transfer processes.
28. Tokenized real estate expected to reach $4 trillion by 2035
The tokenized real estate market is expected to grow from under $0.3 trillion in 2024 to $4 trillion by 2035, representing a 27% annual growth rate. mogul uses blockchain technology and proprietary underwriting, including market data, partner-sourced inventory, qualitative review, inspections, and investment-committee scrutiny.
29. Over $12 billion in real-world assets tokenized globally by 2025
Asset tokenization has achieved critical mass, with over $12 billion in real-world assets tokenized globally by 2025, spanning real estate, art, and other alternative investments.
30. Online platforms account for 62.4% of fractional ownership transactions
Digital delivery dominates the market, with online platforms accounting for approximately 62.4% of total fractional ownership transaction volumes in 2025.
Key Differentiators in the Fractional Real Estate Landscape
31. Over 150 active fractional ownership platforms operate globally
Competition has intensified, with over 150 active fractional ownership platforms operating globally by early 2026. This proliferation makes platform selection critical for investors.
32. Venture capital investment exceeded $2.5 billion cumulatively through 2025
Institutional backing validates the sector, with venture capital investment exceeding $2.5 billion cumulatively through 2025 in fractional ownership and real estate tokenization platforms.
33. Family office allocations growing 35% year-over-year
Sophisticated investors are increasing exposure, with family office allocations to fractional platforms reportedly growing by over 35% year-over-year in 2024-2025.
Utilizing Free Tools for Rental Property Analysis
mogul provides four free investment calculators that use the same data and tools employed by top real estate firms:
- Investment Property Calculator: Analyzes any U.S. address for rental potential with ROI, IRR, and cash-on-cash yield projections
- Rental Property Calculator: Estimates rental income and compares similar properties
- Airbnb Calculator: Specialized short-term rental analysis using data from millions of listings
- Real Estate Calculator: Comprehensive tool covering levered vs. unlevered returns
These tools enable investors to analyze potential returns across three scenarios (base, bear, bull) and compare rental strategies before committing capital.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Frequently Asked Questions
What are the typical annual returns for fractional real estate investing?
Investors in fractional real estate can typically expect combined annual returns of 8-15% for well-selected properties in growth markets. Platform-specific performance varies significantly based on property selection quality and management expertise. mogul reports an 18.8% average annual return / IRR as of Apr. 30, 2025, outperforming industry benchmarks through rigorous property vetting where less than 1% of reviewed properties receive approval.
How does fractional real estate investing differ from traditional real estate or REITs?
Fractional investing provides direct ownership in specific properties through LLC structures, unlike REITs which offer pooled exposure to property portfolios. Investors receive proportional governance rights, monthly dividend payments from actual rental income, and tax benefits including depreciation, advantages not typically available through REIT investments.
What kind of due diligence do fractional real estate platforms conduct on properties?
Quality platforms employ institutional-grade due diligence processes. mogul's research analysts and institutional partners use proprietary underwriting to evaluate properties, with nationwide data, price-to-rent analysis, inspections, and investment-committee review. This rigorous approach results in less than 1% of reviewed properties passing selection criteria, ensuring only properties with maximum upside potential reach investors.
Can international investors participate in fractional real estate investing?
Yes, fractional platforms increasingly serve global investors. With over 6.3 million registered users across leading platforms globally, international participation continues growing. mogul reports 13,000+ investors on the platform.
What technology is being used to facilitate fractional real estate investments?
Leading platforms leverage blockchain technology for real estate tokenization, which reduces transaction costs by 30-40% compared to conventional property transfers. This technology enables seamless share ownership, transparent record-keeping, and potential secondary market trading. mogul uses proprietary underwriting, market data, partner-sourced inventory, inspections, and investment-committee review to evaluate potential property investments.