Equity sharing is a financial arrangement where two or more parties share the ownership of a property. Typically, one party provides the capital to purchase the property, while the other party occupies or manages it. The profits or losses from the property, such as appreciation in value or rental income, are divided according to the agreed-upon terms. This arrangement can benefit first-time homebuyers who may not have enough funds for a full down payment. It also allows investors to enter the real estate market with lower initial costs, making it a popular option in real estate transactions.