56
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FRACTIONAL FOCUS Sales www.opp.org.uk
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FEBRUARY 2010
in the product but the motivation is
speculative in that they think it will
get more expensive. In fact, we’re
Y
already seeing fractional gazumping.
We agreed one sale of shared interests
at £900,000 only to find it had already
INDUSTR
gone at a higher price.”
Lincoln does admit that buyers still
don’t necessarily enter the market
looking for shared ownership. “They’re
starting with the choice of location
and then decide they want fractional
when they discover it’s a better option
for them than whole ownership.”
There is also a view that it’s not
about fractional but resort sales.
PEOPLE
“The key to success is in mixed-use
resorts – they’re the only ones really
selling,” says Robin Mills, independent
consultant and chairman of the Resort
Developers’ Organisation (RDO)
communications council. “Seasons are
selling to their timeshare owners and
Pestana is finding success as a total
TION
mixed-use group, with a hotel chain
and golf courses as well as timeshare
and freehold property. If buyers aren’t
comfortable with what you first offer
DESTINA
then you can show them something
else.”
New attitude to purchasing
As the global economy moves out of
recession, the hope is that the growing
fractional market will capitalise on a
Impressive figures
|
Private residence club Palazzo Tornabuoni in Italy is attracting buyers from across Europe and the US new way of thinking about spending
money. “Timeshare started as a very
thousands of sales in Europe in global appeal and aren’t just relying places like Devon and Cornwall being good quality, high-end product of the
BUSINESS
2009 because economically it was on the European market but reaching developed,” says Turner. “They have 1980s recession and it was inevitable
the hardest year for the industry,” says out to North America, Russia, the a big audience who can drive there that something like that would move
Turner. “It takes time to trickle through Middle East and Asia,” says Turner. and don’t have to worry about the downmarket,” says Lincoln. “One could
but awareness is certainly increasing. “Shared ownership is also drawing exchange rate.” speculate that maybe we’re seeing the
It’s still a very new industry in Europe more and more US buyers across the However, the other 60% of buyers start of a similar cycle in the fractional
but we’ve gone from around a dozen Atlantic to own the classic villa they’ve is made up of a broad mix. “The last sector.”
resorts to nearer 90.” always wanted at a price they can ten sales we dealt with at Palazzo More sales are anticipated in the
afford,” adds Peter Kempf. Tornabuoni were from ten different mid-market as fractional finance
OPER Where the money is Similarly popular but traditionally nationalities,” says Kempf. “We’re becomes more widely available.
European sales seem to be expensive locations are also seeing seeing more UK buyers but also Resorts across Europe are scheduled
VEL
concentrated in some key sales, but some new markets are German, Swiss, Austrian, Spanish, to launch with lending already in place
DE
destinations, with Italy dominating at emerging. “On the basis of the sales French, Dutch and even some people this year, while master agent Assetz
the luxury end of the market. “Tuscany we’ve seen, I’d be keen to have good from Hong Kong and Australia. The claims to have secured finance from a
in particular has definitely been one fractional product in Tuscany and advantage of selling to Europeans major high-street bank in the UK. With
of the key locations,” says Lisa Migani, Mallorca, as well as some emerging is they are not at all affected by large agents such as Fine & Country
director of business development at places like Crete and Cape Verde,” says exchange rates, unlike buyers from the preparing to launch dedicated
the First National Trustee Company Best Group’s Brad Lincoln. US and UK.” fractional divisions, consumer
(FNTC). “It has been a niche market The British make up the largest awareness is also likely to grow.
TING
where it was difficult and very buyer group, with around 40% of the Fractional future “As consumer confidence returns,
expensive to buy; but fractional is market, and the UK itself is emerging So will 2010 be the year that European timeshare and fractional will become a
ARKE
now opening the area up to a wider as the next fractional hotspot in line fractional finally takes off? “The vast more prominent part of the recovery
M
audience.” with the growing trend for domestic majority of our sales were to people market,” says Mills. “They will flourish
Italy is also drawing more buyers holidays. “The UK has got the biggest who could see the way things are more than the whole ownership
from outside Europe. “High-end potential of any market and there going,” says Lincoln. “People are market because of the value they
locations such as Tuscany have a are some really nice destinations in buying because they are interested offer.”
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