NorthCourse Report, April 2009 Consumer trends
- Minimum disposable annual household income €90,000 p.a
- 49% state their travel patterns will not change over the next 12 months
- 34% state that fractional ownership would best suit their personal lifestyles (32% state hotels and 34%, rented apartments)
- 46% are likely to buy a fractional residence
- Italy, France, Portugal and the UK are the most popular destinations
- Within Europe, the UK accounts for the majority of European buyers, at 44%
- Ireland, Denmark, Italy, Germany and Portugal follow, at 6% each
Reasons for buying
- The most cited reason is for vacation purposes or a location of interest (32%)
- This is closely followed by being a lifestyle choice (30%)
- Benefiting from the exchange programme is the next most important (21%)
- 17% state their purchase as a real estate investment
Most important attributes
- The most popular reason is that there are no maintenance hassles (better than a second home) 35%
- This is closely followed by the ability to access a high end property at 28%
- Purchasers are willing to pay a premium for the flexibility of owning a fractional residence. Personal use is the top priority.
- Purchasers wish to buy in areas which already have a prosperous luxury real estate market.
- Access to golf and skiing has always been popular but more recently, city locations such as Paris, Rome and London, are becoming popular. Locations with excellent worldwide transport links are key.
- Trends have illustrated that with the credit crunch, luxury has not disappeared
- Globally, the industry is worth an estimated $1.8 billion
- The number of resorts in Europe has increased from 60 to 90 over 2008 and evidence collected by NorthCourse indicates that additional locations for fractional residences in Europe are still in demand and it is anticipated that there will be substantial growth of the market over the next 5 years.
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