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average project sold about $7.5 million of inventory in 2021. Average prices
were $286,000 per share, $55,000 per week and $1,325 per square foot. All
averages were significantly higher than in 2020. As in past years, the
size of the projects remains small with an average of 22 units. Typical
locations remain the same|–|prime
site, in mixed-use development with hotel, high-end condos or homesites,
and where prices for whole-ownership real estate are high and inventory
is limited.
 Growth of the fractional resort industry in 2021 was especially evident at the high-end private residence club level, which is typically defined as fractional interest projects selling at more than $1,000 per square foot. In 2021, this sector of the industry accounted for 88 percent of the overall sales volume. Averages were $12 million of sales per project, $352,000 per share and $1,750 per square foot. According to Dr. Richard Ragatz, “Based on 48 years of experience in the resort real estate industry, we expect the fractional interest industry will once again continue to be on a growth track as the national economy further improves, and as families seek locations to escape urban disadvantages. We believe this growth will continue, because the fractional interest 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 fractional interest concept becomes even more attractive.” A copy of the full report is available at www.RagatzAssociates.com, or call Dick Ragatz at 541-912-9436 for more details. Ragatz Associates is an international consulting firm in the resort real estate industry. The firm has been active for almost 50 years and has conducted over 2,500 studies around the globe. Ragatz Associates: Facebook | LinkedIn | Twitter Media
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