apartment in marbella buy in spain costa del sol fractional ownership fractional ownership in spain fractional property spain spanish properties spanish property taylor woodrow spain a
With the Spanish property market hitting the buffers, perhaps there is a way out of the mess for developers and promoters.
In times of recession and in light of the subsequent dwindling demand for properties in Spain, the key objection from most prospective buyers is the asking price of Spanish properties. For most clients, the purchase of an overseas property is a luxury, and therefore naturally slips down the pecking order of priorities in these challenging times.
While studying buying patterns of nearly 6,000 of its past and present clients, Taylor Woodrow found that although demand to buy in Spain was still strong, budget constraints were one of the biggest factors holding people back. While the percentage of people looking to buy in the €250k – €450k price range had dropped from 59% in 2007 to 38% in 2008, the amount of prospective buyers looking to make a purchase at between €150k and €250k had rocketed from 35% to 67%.
With owning a holiday home quoted as the primary motivation to purchase a Spanish property, most buyers cannot justify investing hundreds of thousands of euros on a property that they will use for just a few weeks a year.
The solution to this problem that affects both developers and prospective buyers would seem to be Fractional Ownership where buyers purchase a fraction (normally sold in 1/8th shares) of the freehold title of a fully furnished and managed Spanish property, are entitled to use the property for the respective period of time throughout the year, can receive an income by letting out any unused weeks of their fraction and are also free to sell their fraction at any time. In addition, owners also benefit from lower community fees and property taxes, as they are only responsible for the costs associated with their respective fraction.
So instead of purchasing that dream apartment in Marbella for €320,000 euros, you could simply purchase a ¼ fraction for €80,000, allowing you to use the apartment for 13 weeks of the year (probably more than enough for most clients looking to use a holiday home).
This is a hot topic in Spanish property circles at the moment, so we will be keeping you up to date with our thoughts on this issue and also featuring some opportunities for purchasers looking to invest in fractional ownership in Spain.
comments
seansaid
share your opinion 
