What are fractional real estate platforms?

Fractional real estate platforms are technology companies that make property ownership and transactions more accessible through digital solutions. They include online marketplaces, iBuying services (where algorithms make instant cash offers on homes), cloud-based brokerages, and property management platforms. These companies are modernizing the traditionally slow, paper-heavy real estate industry.

What is iBuying in real estate?

iBuying (short for instant buying) is a service where companies use algorithms and data to make immediate cash offers on properties. Companies like Opendoor are examples of iBuyers. Rather than going through the traditional listing process, homeowners can request an offer, get a price within days, and close quickly. While sellers might receive slightly below market value, they benefit from certainty, speed, and convenience.

How do cloud-based brokerages differ from traditional real estate agencies?

Cloud-based brokerages operate primarily online rather than from physical offices. They provide agents with digital tools, virtual workspaces, and technology platforms to conduct real estate transactions remotely. Companies like eXp Realty offer these services, allowing agents to work from anywhere while providing clients with digital-first experiences. This model typically has lower overhead costs and can offer more competitive commission structures.

Why is the digitization of real estate considered an investment opportunity?

Real estate is one of the world's largest asset classes (worth approximately $280 trillion globally) but has historically been slow to adopt technology. The ongoing digital transformation creates opportunities for companies that can streamline transactions, remove inefficiencies, and improve accessibility. As consumer demand for faster, more transparent real estate experiences grows, companies pioneering these digital solutions are positioned to capture significant market share in this massive industry.

What market factors affect the performance of real estate platform stocks?

Several factors influence these stocks: housing market conditions (prices, inventory, and transaction volumes), interest rates (which affect mortgage availability and costs), technology adoption rates among consumers and agents, competition within the proptech sector, and regulatory changes affecting real estate transactions. Additionally, these growth-oriented companies may be more volatile than traditional real estate investments, especially during their early development stages.

15 handpicked stocks

Fractional Real-Estate Platforms

These innovative companies are digitizing property transactions and making real estate more accessible to everyone. Our analysts have carefully selected the market leaders transforming this massive asset class through technology and innovative business models.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17