Fractional Ownership Market Set To Thrive In Dubai

The cooling of the Dubai property market and the approaching completion of flagship tourist developments has created significant opportunity and intensified interest in the shared ownership market, according to RCI Middle East managing director Jeff Tisdall.

Speaking exclusively to Hotelier Middle East, Tisdall said: “Our interpretation of the market from between October 2008 and April 2009 is that many developers were busy evaluating market conditions and coming to terms with new realities. “More recently, we have observed a heightened interest in vacation ownership, fractional and private residence clubs, as developers look to add value to their mixed-used developments.

"In part, shared ownership is seen as a potential solution to business plans which have been negatively impacted by the slowdown in residential property markets,” explained Tisdall. He said that as well as the realisation from developers that shared ownership is an “end-user product”, leisure resort developers are “seeing great synergies between shared ownership, hotel assets and commercial real estate components of mixed use developments”.

Tisdall added: “Considerable supply of luxury apartments and villas is coming on-line over the next couple of years, much of it in extraordinary locations like Palm Jumeirah, Downtown Burj Dubai and Dubai Marina. As the pace of absorption of residential units slows, developers will increasingly look to shared ownership as a reliable monetisation strategy for unsold inventory”.

Another positive for the shared ownership sector is that owners continue to travel during downturns because they already own an asset that can be exchanged for vacations worldwide.
“Interestingly, we have actually seen an increase in exchange activity by our Middle East members over the last 12 months,” said Tisdall. While he predicted that market conditions would be “extremely supportive” of the growth of shared ownership going forward, the issue would be to ensure the “right global exchange solution” — a critical factor for consumers.

“Of course, our role as the global leader in exchange solutions will ensure assets purchased in Dubai unlock the door to vacations around the world,” said Tisdall. For a full interview with RCI Middle East managing director Jeff Tisdall, see the August issue of Hotelier Middle East.

www.hoteliermiddleeast.com

23/07/2009

 

Posted:
23/07/09

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