Mark Sharp, the chief executive of the Association of International Property Professionals (AIPP) claims that fractional ownership will take its place in the real estate mainstream as whole ownership vacation homes become less accessible due to the ongoing global economic crisis.
Sharp said, "The fractional concept will become more popular and no longer be considered a rarity. It will sit alongside the mainstream of people purchasing individual properties overseas. It's important to realize that fractional can include families and friends that buy properties together, not just those that purchase a time period or annual share of a home for example."
Sharp says that the biggest hurdle facing fractional ownership is consumer awareness. "There is still some confusion among new or potential buyers that fractional is the 'new timeshare'. Fractional needs to conduct a campaign which clearly differentiates itself from that. It also needs to increase its marketing budget and continue to educate with great examples of happy purchasers and strong products."
Commenting on the timescales involved in fractional ownership gaining mainstream acceptance, Sharp says it is dependent on the state of the economy: "Five years ago I would have said between 18 to 24 months for fractional to become mainstream. Today, I think we are talking 24 months plus but, of course, that also relies on a significant marketing campaign and spend, as well awareness of preceding market and economic conditions."