Forward thinking developers will profit from creating these opportunities during the economic slowdown
London, England (PRWEB) April 26, 2009
A World Forum on Fractional Ownership was recently held in London, England, an event which was sold out do to the overwhelming popularity of the hottest new trend in real estate.
Delegates from Dubai to Delhi, USA to Mexico swarmed to take hot market tips from fractional ownership gurus who had been hand picked by Fractional Life, the organizer, to share experiences and provide guidance to the delegates.
Case studies from hospitality brands such as Marriott and market studies by Northcourse were presented to highlight the feasible relationship of this functioning concept that speaks volumes of value to consumers who want real equity in their second home alternative.
Fractional Ownership, unlike its predecessor vacation timeshare, offers the investor a real equity stake in the asset, in most cases the assets are vacation properties, or unique residences in idealistic locations.
Fractional Ownership is a concept that developed in the US, and is clearly being looked at closely by dozens of investor developers who realize its potential long term benefits as a business model. In simple terms, it allows the participants to co-own an asset, and to share the costs, and to benefit from maximum utilization.
Locations such as Dubai will offer a compelling value proposition, and resort areas such as the Mediterranean island of Cyprus and exotic Thailand will see much growth over the next 3 to 6 months.
Consumers will enjoy co-owning an apartment in Paris or a castle in France but will only pay a fraction of the cost, and in most cases share in the deed registration or beneficial ownership rights. Typically a 1/8 interest would allow the fractional owner 6 weeks usage a year, to use or rent out for income generation.
"Most of all delegates agree that Fractional Ownership will become a household word in Europe in the Middle East within the next five years, because its the most sensible method to acquire amazing experiences without shelling out all the capital." said Michael J. Tolan, CEO World Class Group, shared ownership consultants based in Dubai.
"Forward thinking developers will profit from creating these opportunities during the economic slowdown" he added, "as more and more customers seek value for money lifestyle experiences." he continued.
"Fractional Ownership is an up -market product with integrity and taste, and will heavily impact the revitalization of real estate sales now and in the future." added Tolan "This product and its various forms of conveyance and structure defy the economic situation due to its consumer friendly value proposition,and in fact, will thrive in these conditions" he said.
Fractional Ownership is also booming in Asia with leaders Karma and Absolute Group setting the pace.
"We are already seeing a demand from hotels and developers in Thailand to want to open up their markets using the fractional model", said Bryan Lunt, Chairman of Absolute Group, a pioneer of fractional offerings in Asia. We are providing a new platform to enable developers and hotels to enter this market within our group"
"Fractional Ownership just makes common sense to everyone involved, the standards are six star in our portfolio, and the services second to none, and our customers just love it" said Lunt.
World Class Group expects the Fractional market in the Middle East to top 50,000,000 usd in the next 12 months, and triple within 24 months.
About World Class Group
A Multi-Disciplined Consultancy group with a special focus on real estate solutions, shared ownership, fractional and private residence clubs. WCG has offices in Lebanon, UAE and Malta.