The annual assessment of the fractional ownership and private residence club sector in North America, conducted by Ragatz Associates, has revealed highly encouraging findings and significant growth over the previous two years. The information covers properties in the United States, Mexico, the Caribbean, and Canada.
The predicted sales volume for 2022 was $624 million, which would be a 13-year record when it exceeded $665 million in 2009. Before the recession, sales peaked in 2007 at $1.7 billion, but in the following years, they declined sharply, averaging just $232 million from 2006 to 2020. The most recent upward trend started in 2021 with sales volumes of $495 million and rose to $624 million in 2022, just one year later.
The bulk of the $624 million was sold at luxury private residential clubs, where the average price per square foot is above $1,000. The average share with five weeks of annual use sold for around $325,000, or $65,000 per week and $1,350 per square foot. Over 25 per cent of residences in this class have a price per square foot of over $2,500.
The size of the developments, with an average of just 28 units, is the same as in previous years. The typical locations remain prime sites, mixed-use developments with hotels, upscale condos, or homesites, and areas with high costs for whole-ownership real estate and little available supply.
According to Dr. Richard Ragatz, “Based on 49 years of experience in resort real estate, we expect the industry will continue its recent growth track as the national economy hopefully stabilizes and families seek locations to escape urban disadvantages. We believe this growth will continue, because the concept is based on personal use rather than speculation, and buyers with discretionary spending income are able to purchase only the amount of time they can use. Other reasons for growth include the fact that all property management is handled, leaving owners with the benefit of just showing up and enjoying the property and its amenities. Add to this the opportunity for flexibility and variety of use from the external exchange process and the concept becomes even more attractive.”
You can receive a copy of the complete study from RagatzAssociates.com or by calling Dick Ragatz at 541-912-9436 for further information.
Ragatz Associates is a leading international consulting company in the resort real estate sector. The company has operated for approximately 50 years and has conducted over 2,500 investigations worldwide. The Annual Survey is the most in-depth and accurate global fractional interest market analysis. This latest report is the twenty-third annual study produced by Ragatz Associates.
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