Owners of luxury fractional property buy a share of a single residence, that provides them with a couple of weeks to thirteen weeks of usage a year. The ownership period varies by development and can be expressed as a fraction (eg 1/10, 1/8, or ¼) or as a number of weeks (eg 5, 6 or 12 weeks).
Private Residence Clubs are the upper tier of the luxury fractional market, providing all the services of a five star hotel together with the ownership.
There are hundreds of fractional and Private Residence Club developments located in city, beach, mountain and resort destinations. Use our home directory to search through these locations.
They are sometimes compared to timeshares, although there are several key differences. For instance luxury fractionals are in better locations, are more luxurious and typically larger, providing 2, 3 or 4+ bedrooms.
This article covers the reasons people buy fractionals and PRCs, and if you're looking to buy read the list of questions to ask before buying your fractional. For easy reference there is a glossary of terms.
The latest news and research on luxury fractionals and Private Residence Clubs is available below.
Since 2004, Elite Alliance has been operating a luxury exchange program, allowing owners of private residence clubs to swap time at their various locations. The company has gone on to other projects within the real estate and hospitality industry, including their recent launch of a series of private residence clubs. SherpaReport spoke with them recently about these new clubs.
Pacaso has only been in operation a little over a year, but the newcomer to the second home ownership market has already made quite a splash. The company offers an alternative to other shared ownership options and aims to make owning a second home available to a larger audience. SherpaReport caught up with Pacaso CEO and co-founder, Austin Allison, to learn more.
The annual survey of private residence clubs and fractional real estate interests from Ragatz Associates shows total sales of about $179m in 2020. This amount includes new closed sales, presales, and inhouse resales.
The survey of private residence clubs and fractional real estate interests from Ragatz Associates, shows total sales of $198m in 2019. This is the highest sales volume in 3 years, with a 3-year increase of 13.1%. It is the first year when the survey has excluded destination clubs.
The annual survey of destination clubs, private residence clubs and fractional interests from Ragatz Associates, shows total sales of $471m in 2018. This is down just a little from $480m in 2017. The overall total sales have been around $500m for several years. The mix between the different components has varied a little over these years.
The annual survey of destination clubs, private residence clubs and fractional interests from Ragatz Associates, shows total sales of $480m in 2017. This is down from $516m in 2016. The mix between the different components has varied a little over the years but the total has consistently been around $500m for the last 8 years.
The annual survey of residence clubs, fractional interests and destination clubs, from Ragatz Associates, shows total sales of $516m in 2016. This is roughly the same as the total sales in the last few years. The mix between the different components has varied a little over the years but the total has consistently been around $500m.
When the economy took a dive in 2007/8, there was a noticeable decline in the fractional home market. The luxury of purchasing a share in a second home was a financial risk too great for many. Even when the housing market and other economic indicators started to improve again, the fractional market remained weak. However, that seems to be changing. Recent reports indicate a definite rebound in the market. We talked to management and owners at several high end private residence clubs to learn more about why sales are back up and why people are attracted to buying a share of a property.