As property sales on the island of Cyprus stall, like thinking developers look to new avenues to generate new sales and income from alternative sources.
One of these solutions was discussed at the First Cyprus Property Developer Symposium on Shared Ownership in Nicosia at the Hilton Hotel.
The event featured a comprehensive
presentation on how developers in Cyprus might utilize new systems in re-packaging properties to investors through collective ownership, co-ownership and fractional offers.
Put simply, this new niche market has blossomed into a multi-billion dollar industry worldwide as it allows an investor to own part of a property, to invest less, and maximize their own enjoyment and usage of a second home.
Developers would typically allow up to 12 investors to purchase a 1/12th interest in a luxury second home, thereby allowing them usage of one month a year.
Today, this system in popular in the USA, Thailand, Dubai, Turkey, Greece and other markets where tourism has flourished and the appetite for a second home has provoked investors to obtain their own piece of the pie.
Typically the developer places the selected property into a company, and allows smaller investors to purchase shares in the company, giving them the right of usage for one month a year, and also securing their investment with an equity based asset that the company they invested in now owns.
“Although there are several formulas on the market today, we believe forward thinking developers will embrace this formula to move their sales forward, and at the same time, attract a new fresh caliber of savvy investors who would never use a second home in Cyprus more than one month per year.” said Michael J. Tolan, CEO of World Class Group.
Tolan reminded the audience that developers who do the exact same things they have been doing without changing their mindset or strategy are doomed to sink in quick sand.
George Mintis, Vice President of the CTO also announced that the Cyprus Tourism Organization was reviewing proactive solutions for Hotel Owners to also profit from other forms of Shared Ownership, and highlighted Condo Hotels as one area of potential focus.
The Registry Collection, the world premier lifestyle services company that provides flexibility and value to investors of Fractional Ownership owned by Wyndham Worldwide was featured to the attendees as a solutions company to assist developers to enter this new arena.
Mr. Vassilis Themelidis, Regional Director of Group RCI based in Athens, was on hand in Cyprus to meet property developers who he believes can and will capitalize on this sector of the market.
“We at Group RCI are committed to provide Cyprus developers with the experience and support of our organization we have earned over the past 30 years worldwide “ he said.
“There are sunny days ahead for Property developers in Cyprus who embrace this concept now and who make a commitment to exceed client expectations by delivering superb products and services” he added.
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