The overseas property market has witnessed substantial changes over the course of the past twelve months, as global economic conditions have resulted in decreased availability of credit throughout the majority of the world's property markets. Despite these adverse conditions however, one area which has seen substantial growth is that of fractional ownership of property, and this trend is currently showing signs of substantial future growth potential.

So what is fractional property ownership, and why is it proving so popular with both clients and property developers at present? Fractional property ownership is a new method of buying an equity stake within a property, which sees the client take ownership (including title deeds), of a predetermined equity stake in a property. In this way, by offering shared ownership of the property, it differs from the traditional model of 'right-to-use' witnessed through the growth of traditional timeshare offerings.

By giving the owners an equity share in the property, it ensures benefits such as an increase in the overall value of the property is shared in the same way as traditional real estate, albeit on a 'fractional' basis.

The second major benefit of fractional property ownership is that it offers the buyer an opportunity to purchase a stake in a property which they would otherwise not be able to afford. Many of the new fractional ownership opportunities being marketed by overseas property developers allow purchasers the opportunity to buy a stake in high value properties, often luxury villas, for a stake of around £30,000.00. With the normal price of the villas being in the region of £360,000.00, it is easy to see the overall appeal to the client.

The market for fractional property ownership is showing signs of considerable growth at present, and with factors such as decreased affordability of credit having an impact on the demand for full ownership, it is easy to see the appeal that fractional ownership offers.