Real Estate & Fractional Ownership News in Spain from Propertyshowrooms.com

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.

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.

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 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)