Double Digit Growth of Fractional Real Estate
maria gudelis | June 27, 2008Fractional real estate is a market segment along with timeshare segment of real estate is really a hot topic these days. During a recession, the timeshare market always does well as people who can no longer afford second home ownership turn to less expensive solutions. The fractional real estate concept has really evolved in recent years.
From a real estate investor who owns one vacation home who fractionalizes it to the mega-Trump type of developer who fractionalized a $100 million dollar development, the door is wide open from the small investor to the Trump-like investor to get in on this emerging trend that is a perfect solution for this economy and the growing segment of baby boomers looking to own a million dollar home for a fraction of the cost.
The last few years have really been the years of boom for fractional real estate industry to the tune of double digit growth that is frankly, astounding given the demise of the residential real estate market. Also, the fact that the cost of living places have really gone up in last few years makes people to shift towards the fractional properties.
Nice post! Keep them coming and you might get bookmarked.
Fractional developments have ertainly been growing rapidly with over 250 major development in North America, and thousands of individual fractional homes.
Even in 2007, with the overall real estate market in a tailspin the number of fractional developments increased as did the $ spent on fractionals.