As the world economy fluctuates, so do trends. Consumers may buy because they need, rather than want, or look for comfort and value rather than high end luxury.

A recent report on the fractional industry by leading leisure real estate solutions specialists Northcourse shows certain trends are gaining momentum as consumer desires change. The report, which focuses on the US and Caribbean markets, highlights important factors that can contribute to the success of a fractional development.

For a fractional project to succeed in this climate in particular, there are a number of key factors to bear in mind. The main ones include:

• Consumer financing – projects that can facilitate financing for the buyer are more likely to be successful in this economy
• Proper positioning - factors like climate, region, airport access, etc. should suit the target buyer market
• Buyers are now seeking a convenient location in comfortable but not necessarily opulently luxurious accommodation, that offers space and amenities where they can enjoy quality time with their families
• Special locations - lakeside, mountain or beach - are at a premium
• Flexible usage, unique packages and added extras increase the project’s appeal
• Mixed use resorts are winners. Those with hotels, spas, beach facilities or close to skiing (and airports) prove more popular than those that don’t offer a resort experience. Onsite restaurants, bars, entertainment and so on are a big plus
• Managed rental programme –the ease of being able to rent out your share weeks through a management company is an advantage. The management company can also take care of repairs, servicing, etc. – a complete, no-hassle owner experience
• Studios are dipping, larger properties are rising… Space for groups of family and friends is a priority

The report points out that although the overall volume of fractional sales for the Americas and Caribbean fell last year compared to the previous one (down to $1.34 versus $1.98), fractional sales have actually held up pretty well compared to second home whole ownership, despite the difficult conditions created by the malaise of the US economy.

Interestingly, the report suggests that resorts that are more dependent on US buyers, e.g. Los Cabos and Aspen will be overtaken by demand for destinations that are international favourites for non-US visitors: San Francisco, New York and Miami are more likely to attract foreign buyers (again, easy airport access is a factor here).

The fractional industry is united in its belief that fractional sales will make even larger gains in the overall overseas home ownership market and the outlook is optimistic. Flexible price points make it an affordable real estate solution and a choice of destinations, resort-style amenities and the opportunity to own a no-hassle holiday home are all strong plus points.