Chilean Fintech Fraccional Goes International with a Project in Miami

The fintech company Fraccional (fraccional.cl) took a step in the process of internationalizing its model, which consists of fractional real estate investment, beyond the borders of Chile. This milestone consists of a project in Miami, United States, a market that they describe as highly profitable and dynamic.

According to Julián Blas, COO and co-founder of the company, in a statement, this business responds to a demand for assets in the US market –characterized by its stability and dollar denomination– by its users.

Fraccional’s model is anchored in crowdfunding to invest in real estate projects, significantly lowering the investment amount for the asset class. In the case of the project in Miami – a market historically reserved for high net worth individuals – investors can participate from $300.

The system brings together people interested in investing in the fintech’s residential real estate development projects, purchasing the assets through a joint-stock company in which the investors are partners. From then on, in addition to the appreciation of the asset, the contributors receive flows from the rental of the properties.

A market of interest for Fraccional

The first development of the Miami project is aimed at the upper middle class and will be located in the north of the city. It will replicate the traditional model of Fraccional.cl, where investors acquire fractions of real estate projects. “We maintain our essence: simple and accessible investment, but with a global perspective,” said Blas in the press release.

For its entry into the US market, Fraccional said it will work with real estate companies with a track record that meet strict requirements, such as having approved building permits. “We have chosen partners with whom we already have experience in Chile, such as Copahue and GFU, linked to successful developments in Ñuñoa, for example,” Blas explained.

The fintech company highlights that Miami has shown sustained growth in housing demand, describing it as a high-value market.

In 2023 alone, they indicated in their statement, the city received more than 54,000 migrants, contributing to a market with high turnover and projects that are sold in short periods, between one and two months, on average. This dynamism has consolidated the city as a preferred destination for international investors, including Chileans, they assured.

Expansion intentions

The initial project in Miami, they said, will be followed by a second initiative focused on the lower middle class, with a location in the south of the city. And yet, looking further ahead, the tech firm Fraccional is already looking beyond the U.S. as well.

The fintech company is eyeing new opportunities in other Latin American and European countries, specifically in Spain. In this particular market, they are planning coastal projects for residential and vacation use.

“With this strategic move, Fraccional.cl seeks to consolidate itself as a relevant player in the fractional real estate investment market, offering attractive and accessible alternatives for small Chilean investors interested in dollarizing their assets and diversifying risks,” they concluded in their press release.

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(Featured image by jessica45 via Pixabay)

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First published in Funds Society. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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