The fractional ownership sector could benefit in the long-term from the current economic difficulties facing buyers, according to a number of industry specialists.
Speaking recently, Carla Rayman, director of international business development at Florida’s Prudential Palms Realty, argued that the current economic climate will increase an emphasis on value when purchasing overseas property, with fractional ownership well-positioned to appeal to purchasers.
She said: “I feel that there will be a resurgence of these types of product in the market. The shared model gives someone the opportunity to invest in an area or property that they either may not have been able to afford via full ownership. It also gives a buyer the comfort of knowing their property is being maintained in their absence.”
Graeme Grant of Fractional World agreed: “Fractional development will generate more buyer interest during a period of economic downturn - the message is ‘buy that wonderful home in the sun that you have always craved at a fraction of the price you had expected to pay’.”
This upswing in interest can be seen in the increased coverage of fractional ownership as, according to Peter F. Kempf, CEO for Europe at DCP International, “the media focuses on more financially sensible forms of ownership without sacrificing quality”.
Jerry Cobb, chief executive the Fractional Ownership Consultancy, concluded: “My view is that we’re at the beginning of the shared ownership industry and there are different products out there for the whole of the market. Sharing is the future, whether at the top-end or for the mass market.”
This positivity was also present at the recent Fractional Interest Conference, hosted by Dr. Richard Ragatz of Ragatz Associates. Attended by close to 400 fractional ownership developers, discussion at the San Francisco-based event focused on the impact of the credit crunch on the sector.
Dan Lubner, president of the Robb and Stucky Resort Division, said: “The general tone of the conference was positive, especially considering today’s economic climate and the consensus from attendees was that the fractional interest industry will recover more rapidly and more strongly than other segments of the resort real estate industry.”