Much of the property market may be in the doldrums, but the Fractional Summit in London appeared to show that one part of the market is bucking the trend, with attendance up 80 per cent on last year and the event sold out. That may be a sign of the times: with British buyers having to cope with the lower value of sterling as well as falling property values at home, fractional offers one way to buy a property overseas that is practical and more affordable.
Piers Brown, founder of Fractional Life magazine, which organised the event, noted that some $1.5bn was spent on fractional real estate in the US in 2008, and said that with more than 210 developers and service operators coming to the summit "the appetite for fractional ownership in Europe is now well and truly here".
Fractional ownership allows you to buy a fraction of a property, typically a quarter, a tenth or a twelfth, but with many other permutations to be found. The advantage is that you pay a fraction of the cost, and if you're only going to use the property for a limited number of weeks each year, you're not paying for all the time it is empty. The concept is still somewhat misunderstood in Europe, and is often confused with timeshare. The big difference is that with fractional ownership, you own a share of the freehold in perpetuity, which you can sell or leave in your will, and it is far more likely to prove a good investment than timeshare.
One of the best-established examples in Europe is Borgo di Vagli, a restored 14th century hamlet near Cortona in Tuscany, where a tenth fraction in a luxurious one-bedroom residence would cost you €63,000. The bonus is that there is no limit to how much you can use the property, which comes with antique furnishings, top-notch concierge services and a spectacular outdoor swimming pool. Bigger players in the fractional market include Marriott Vacation Club International, Timber Resorts and YOO.
Borgo di Vagli is advertised on Primelocation here .
Alexander Garrett is a freelance property writer who contributes regularly to The Observer and British Airways' Business Life.