Within five years the Fractional Share will take over the
Bulgarian holiday market, experts expect. The main reason for it are the bad economic conditions affecting the middle category of buyers, they say.
According to the researching company Mintel, consulting company Ragatz Association and Northcourse Ltd. Fractional share was becoming popular globally even before the crisis. The data shows that in 2007 the Fractional Share market was worth 1.98 billion dollars, which represents 20% growth compared to 2006, and this does not include luxury clubs for wealthier investors, which registered sales for 2 billion dollars.
It was expected that during 2008 the
Bulgarian market will fetch around 1.2 billion dollars only in the East part of the world. Substantial raise in the profits in the mature European and Mediterranean markets are also expected. Last year some British financial funds did not exclude the chance of this type of
investment in Bulgaria.
More entrepreneurs look into the private ownership as a way to secure sales in the unstable times. Brad Linkoln, chairman of the consulting company The Best Group, says in average two entrepreneurs a day walk in looking for help to structure a product for Fractional Share but 85% get turned away as the company lacks enough specialists in this area. “The Fractional Share does not make the bad resort into a good one” he also adds. With regards to the future of the
Bulgarian markets Lincoln thinks that the traditional full ownership of a
Bulgarian holiday home will become “luxury for the upper level buyers” and the Fractional Share will take over the market due to the lower threshold participation.
“Fractional Share has been a big success in the USA for the past 10 years and will become a basic holiday product in Europe, including Bulgaria, in the next five years, and will be stronger in sales than the full ownership deals in that period.” thinks Graham Grant, marketing director of the Resort Group Int.
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FRACTIONAL SHARE: this is a percentage part of the right of ownership on usually expensive active, where the parts are sold to individual owners. It is often mistaken with the timeshare-the opportunity to temporary use ownership, where the investors posses a part of the right to reside in the property at certain time of the year.
