Global Real Estate & Fractional Ownership News from Propertyshowrooms.com

Dubai property sales rates predicted to drop

Wed, 7 Sep 2011 00:00:00 GMT

One property analyst is anticipating falling sales rates among real estate assets in Dubai over the coming months, predicting a decline of between ten and 15 per cent.

In an interview with Gulf News, head of research and consultancy at CB Richard Ellis (CBRE) Matthew Green commented that it is important to look at "the fractional nature of the market as it stands", which has resulted in certain developments experiencing price shifts but not the sector as a whole.

Mr Green stated: "Overall demand is still outweighed by existing supply and this situation is unlikely to change in the short term."

He added that economic difficulties in the US and Europe have not done the Dubai property market any favours.

Last month, CBRE published a report that revealed rents in several of the northern emirates have dropped significantly.

According to the organisation, rental rates for apartments in the region fell by an average of 18 per cent year-on-year, with Ajman and Umm Al Quwain among the hardest hit areas.

US fractional ownership market 'to recover faster than whole ownership'

Tue, 21 Jun 2011 00:00:00 GMT

The fractional ownership property market in the US is on course to recover more quickly than the whole ownership sector, it has been revealed.

According to research carried out by Ragatz Associates shared ownership investments are becoming a more attractive prospect than purchasing a second home outright.

This assertion appears to be borne out by other industry figures in the US.

President and chief executive officer of Private Residence Resorts in Seattle Michael Burns commented: "We anticipate shared ownership to experience significant growth as the national economy recovers."

Mr Burns added that buyers' ability to exchange their timeslot for other properties elsewhere in the world will help the fractional ownership sector move forward.

Affordability and flexibility were cited among the key factors driving the popularity of such properties by the Ragatz Associates report.

Earlier this month, Perspective Magazine announced the dates for the next timeshare and fractional industry expo. The event will be held between January 31st and February 2nd 2012 at the Ritz Carlton Cancun hotel in Mexico.

Fractional ownership rising in Brazil

Fri, 9 Apr 2010 00:00:00 GMT

The number of property investors purchasing fractional and timeshare units in Brazil has grown by a significant amount within the last 12 months, it has been revealed.

Overseas Property Professional (OPP) has reported that sales of the fractional properties shot up by approximately 60 per cent last year, with the increasing South American tourism trade cited as one reason for the rise.

The figures, released by holiday exchange firm RCI, come despite the company posting an overall sales loss of 12 per cent during 2009.

Mario Ocampo, public relations director for RCI Latin America, told OPP that the rise in interest in the region could be due to the recession in North America, as the markets had not been as negatively affected by the economic troubles.

"The involvement of European investors has also been very important in the Latin American market," he explained.

"Part of the Brazilian growth in particular is due to European investment."

Numerous property portals have already predicted that the South American destination is set to be a top seller during 2010.

Fractional ownership in Europe on the rise

Tue, 26 Jan 2010 00:00:00 GMT

The fractional ownership market in Europe saw an increase in sales towards the end of 2009, it has been reported.

The Best Group, a fractional consultancy, reported £2 million worth of sales across Europe since the start of November, Overseas Property Professional (OPP) has stated.

Best Group CEO Brad Lincoln told OPP: "What has made completions accelerate is a sense that properties could become more expensive in six months.

"Part of the driver is people are seeing fractional finance coming through and are expecting prices to be driven up as the world comes out of the economic downturn."

OPP suggests that fractional ownership companies in Portugal may have taken advantage of the rising cost of property in the country.

Meanwhile, a surge in investors taking out fractional finance has been cited as the reason why one developer has seen a continued increase in its fractional sales.

Investment consultancy Property Frontiers recently described Portugal as being a "safer" market to invest in than its European neighbour Spain.

Fractional ownership in Europe on the rise

Mon, 25 Jan 2010 00:00:00 GMT

The fractional ownership market in Europe saw an increase in sales towards the end of 2009, it has been reported.

The Best Group, a fractional consultancy, reported £2 million worth of sales across Europe since the start of November, Overseas Property Professional (OPP) has stated.

Best Group CEO Brad Lincoln told OPP: "What has made completions accelerate is a sense that properties could become more expensive in six months.

"Part of the driver is people are seeing fractional finance coming through and are expecting prices to be driven up as the world comes out of the economic downturn."

OPP suggest that fractional ownership companies in Portugal may have taken advantage of the rising cost of property in the country.

While other developers like Pestana, who reported a continued increase in transactions since 2007, taking advantage of an uptake of fractional finance.

Investment consultancy Property Frontiers recently described Portugal as being a "safer" market to invest in than its European neighbour Spain.

Fractional ownership development opening in Spain

Wed, 20 Jan 2010 00:00:00 GMT

A new development set to be launched in Spain will offer homes for sale on a fractional ownership basis.

David Lloyd Resorts is launching a new development at Desert Springs Resort in Almeria next month, giving investors the opportunity to buy four-week shares in apartments and townhouses located on the site.

The company plans to build a network of fractional ownership developments across the world, in countries such as Canada, Thailand, Barbados, Cyprus and Turkey.

Speaking about the proposed development in Spain, Simon Coaker, sales and marketing manager at Desert Springs, said: "David Lloyd Resorts uses this principle to provide individuals with the opportunity to share in, and enjoy, exclusive property ownership that may previously have been unobtainable as a sole investor."

According to Nick Lawrence, sales and marketing director of David Lloyd Resorts, the company plans to sell the properties after ten years, returning the proceeds to the owners in a manner proportionate to their original investment.

Fractional ownership serves up ace prospect, says Henman

Tue, 20 Oct 2009 00:00:00 GMT

Former tennis star Tim Henman has praised the value of fractional ownership.

Since retiring from the sport, the 35-year old has built up a property portfolio both in the UK and overseas, telling the Daily Telegraph that he particularly enjoys using his family's fractionally-owned property in a forested area of Provence.

"It's a beautiful location, there's no one overlooking us and the house has kept traditional features such as the old beams, but it also has great contemporary touches," he said.

Mr Henman stated that the investment is a "fantastic" one, as it means his family has six weeks per year when they can use the home while carrying no responsibility for matters of upkeep.

It also offers investors the chance to actually own an asset, unlike in the case of timeshares, he noted.

The south of France is a particularly good place in which to invest in rental property, head of research at investment firm Property Frontiers Christopher Chadd commented this month.

He said that Languedoc and the south coast are prime areas, while those who want an investment that is sure to hold its value can also look to Paris.

Expert outlines benefits of fractional ownership in Spain

Wed, 5 Aug 2009 00:00:00 GMT

Fractional ownership has significant financial benefits, according to an expert.

Catriona Hogan, marketing director for the Fractional Group, noted that investors can rent out any time they do not use in a property in order to boost their income.

She also pointed out that owners do not have to foot the bill of a year's worth of charges when they may only visit for six weeks of that year.

"The beauty of fractional is that each owner gets between four and 12 weeks usage each year, which is more than enough for the majority of people," she declared.

The company is preparing to launch a series of fractional properties on the Costa del Sol in Spain, which will feature luxurious furnishings and a concierge service.

In related news, Property in Spain recently announced that it was to offer a range of foreclosed deals to investors that can be compared to those available in the US.

Fractional ownership praised by property firm

Sat, 6 Jun 2009 00:00:00 GMT

A property firm has praised the flexibility and opportunities that fractional ownership offers.

Director of Seek & Buy Properties Overseas Alan Bonner told the Peterborough Evening Telegraph that business is currently booming as investors seek bargains and the value of the pound improves against foreign currencies.

Discussing the company's involvement in fractional ownership, he stated: "It is ideal for clients who can't afford to buy a property outright, or don't want to because they will, on average, only use the property for four to six weeks of the year."

Rental income and capital growth are among the financial benefits that can be derived from such an investment, he noted.

Mr Bonner revealed that half his enquiries are for Spain at present, although countries like Portugal, Cyprus, France, Turkey and Bulgaria are all getting attention.

The improvement in the value of sterling could help make euro mortgages taken out for Spanish property automatically cheaper, making now a potentially good time to take one out, Miranda John of mortgage broker Savills Private Finance recently told the Daily Telegraph.

Fractional deal in South Africa 'offering more'

Mon, 25 May 2009 00:00:00 GMT

Those who want more from a property overseas are able to get it through deals such as one being offered in South Africa, it has been suggested.

South African company Zorgvliet is looking to provide more through the sale of a series of properties at Dinkweng in the wilderness area of the Waterberg Biosphere, the Independent reports.

The deal includes access to the firm's 16,000-acre game reserve, giving investors a chance to see animals such as elephants and rhinos, as well as being involved in conservation.

Spokesman for the firm Mac Van Der Merwe told the paper: "Today's buyers are more sophisticated and have higher expectations. They want to see and do more, they no longer want standard holiday property."

The homes are being sold on a fractional basis for GBP 10,000 in perpetuity, with one week of use per year.

South African property is more affordable due to falls in house prices over the past year, an Absa Group survey showed earlier this month.

It revealed a 2.7 per cent year-on-year fall between April 2008 and the same month this year.

Tuscany property alternative hailed

Mon, 27 Apr 2009 00:00:00 GMT

The fractional option is a good way to get into Tuscany property ownership, it has been suggested.

Writing for the Independent, Janet Street-Porter stated that the popular practice of restoring old ruined farmhouses is harder to do than it once was, due to a lack of supply and the red tape involved.

She also commented that restoration in is very expensive and letting carries the risk of extra damage.

Ms Street-Porter said the solution could lie in fractional ownership, citing the example of the Borgo di Vagli hamlet project - where the whole medieval settlement was restored by architect Fulvio Di Rosa and is available on this basis - as a good example of such an opportunity.

Earlier this year, a survey by Italymag.co.uk based on the number of adverts placed per region for homes found that Tuscany was the most popular property investment area of the country.

North of Costa Blanca hailed as bargain region

Tue, 7 Apr 2009 00:00:00 GMT

The northern part of the Costa Blanca is offering some good property bargains in the wake of the recent downturn in the Spanish property market, it has been stated.

Such cut-price deals are particularly available in areas inland from the coast, the Times reports.

It notes the example of the town of Xavita, where buying agent Lisa Francis said townhouses can now be found for GBP 60,000, in contrast with the situation two years ago where few properties cost under GBP 150,000.

She noted another instance where a villa with a pool and land near to the town had halved in value, stating: "It would have cost GBP 280,000 at the top of the market, but the owners will now take offers of about GBP 140,000."

Spanish property buyers may also be interested in recent comments on the Professional Golfers' Association website that the nation's coastal regions offer some of the world's best courses.

David Brice of Golf International listed courses such as Las Brisas, Sotogrande and 1997 Ryder Cup venue Valderrama among the top venues in the country.

Spanish Property Developer Converts to Fractions

Mon, 2 Feb 2009 00:00:00 GMT

Spanish developer Taylor Woodrow de Espana has converted 16 unsold properties on its Las Encinas de los Arqueros and Los Robles de los Arqueros projects in Andalucia into fractional units, after its research found that buyers in the country are looking for cheaper property.

The developer believes that with a drop in property prices across Spain, and a lack of buyer liquidity, the new model will help shift stock across the country.

“It is also a more eco-friendly option as properties are not left empty for long periods during the year,” said a spokesperson. “This is an innovative way for Taylor Woodrow to tackle the problem of oversupply in Spain positively.”

Taylor Woodrow said that when conducting research into the buying patterns of nearly 6,000 of its past and present clients, it found that, although demand to buy in Spain was still strong, budget constraints were one of the biggest factors holding back sales.

The percentage of people looking to buy in the €250,000 - €450,000 price range had dropped from 58.82% in 2007 to 38.02% in 2008, while the amount of investors looking at the €150,000 - €250,000 bracket jumped from 35.29% to 66.98%.

“During 2008, consumers were forced to look at their budgets and unsurprisingly the lower priced houses in our selection became more popular as house hunters looked to bag a bargain overseas,” said Victor Sague, marketing director of Taylor Woodrow de España. “We believe that whilst the credit crunch has dealt a heavy blow to house hunters, rather than delaying their home owning dreams in the sun they are merely reassessing their budgets and looking for cheaper alternatives.”

Owning a holiday home is still the primary reason for consumers looking to buy in Spain in 2008, according to the research, with 55% of enquirers citing this as their core motivation. However, those seeking a permanent move to Spain rose sharply as a percentage of enquirers, taking a 23% share in 2008 as opposed to 12% in 2007.

Two-bedroom homes dominated the market last year with 57% of all 2008 enquirers looking for homes of this size – a 7.5% rise y-o-y.

When looking at the types of properties preferred, apartments had a clear majority with 66% of enquirers looking for this option. Penthouses ranked second (18%) and semi-detached homes third (7%).

Breaking down the enquiries according to age groups, the highest rise was seen in the 30 - 45years’ category with 44% of enquiries in 2008, compared to 35% in 2007, according to Taylor Woodrow de Espana.

Story from OPP (registration required)

Fractional ownership 'will increase in popularity'

Wed, 28 Jan 2009 00:00:00 GMT

The popularity of fractional property ownership schemes is set to increase during 2009, it has been claimed.

According to one foreign property specialist, the concept - which involves buyers purchasing a percentage of a property and sharing use of the home with other owners - will become more popular over the coming months as purchasers begin to choose this option over full ownership.

"We're still selling some property but certainly nothing like the scale we were doing. The market for full ownership is not what it was," marketing director of Select Property Helen White stated.

She added that the firm is launching a new shared ownership scheme to give potential buyers the opportunity to invest in overseas real estate, noting such models are likely to gain in "prominence" during this year.

Fractional real estate schemes may appeal to investors looking to make a purchase in Bulgaria, where, according to recent figures from weekly publication Stroitelstvo Gradut reproduced in the Sofia Echo, the price of real estate it falling.

Fractional Ownership to Rescue Spanish Property Market?

Fri, 23 Jan 2009 00:00:00 GMT

Fractional property will take over from freehold sales in Europe within five years, according to industry specialists, as poor economic conditions leave its legacy on the world’s mid-range buyer market.

Fractional ownership was already growing in prominence with global buyers before the downturn, according to data from Mintel and the world’s two biggest fractional consultancies, the Ragatz Association and Northcourse Ltd, which revealed that in 2007 the fractional ownership industry was worth US$1.98bn, (20% up on 2006) excluding destination clubs which registered a further $2bn in sales.

In 2008, the market is predicted to be worth $1.2bn alone in the Middle East, with the majority of establish European and Mediterranean markets all recording strong growth in sales figures.

The industry is also taking root in Egypt, with agency Egypt Real signing a new affiliate partnership with consultancy Fractions Abroad, making it, what it claims, the first company to offer fractional ownership in Egypt.

More and more developers are looking to fractional as a way to secure sales in an uncertain future. Brad Lincoln, CEO of fractional consultancy The Best Group, said his company has been approached by an average of two developers per day to help them consider structuring a fractional product, but turn down 85% because there are not enough trained sales people to handle fractional sales, also stating that “fractions do not turn a poor resort into a good one”. “In five years time the only people not buying fractional will be retirees. Fractional is going to take over completely,” he added.

As a result, the new launch RGM Fractional held its inaugural Fractional Awareness Day in London, designed to raise awareness within the industry about fractional ownership and advise those brokers looking to enter the sector.

Speaking about the future of the international property industry, Lincoln suggested that freehold ownership will become a “luxury, with only high-end buyers taking this path” in the future, with fractional ownership, and its lower cost of entry, taking over.

Graeme Grant, MD of Resort Group International, agreed with Lincoln and said, at the awareness day: “Fractions have been successfully marketed in the USA for some 10 years now and will become the major leisure property product in Europe within five years, easily outselling freehold within that period.”

Story from OPP (registration required)

Fractional Real Estate Trends 2008-2009, by Sherman Potvin

Thu, 22 Jan 2009 00:00:00 GMT

Fractional Real Estate Trends 2008-2009 by Sherman Potvin Even in the economic downturn of 2008, the fractional market was still the fastest growing real estate product. Luxury Fractional Guide itself has seen its listings and traffic grow exponentially. Despite the economy, fractional real estate is steadily selling, and. They might not be selling as quickly, but people are still buying...