Can you imagine paying 300,000 euros for a luxury villa worth 3.4 million euros? This is possible if you own a property with someone together. This formula is widespread in other countries, for example, in the USA, and is becoming popular in Spain.
In Spain, Proptech Vivla is stimulating the market for joint ownership of exclusive homes in the most expensive tourist destinations. For instance, the Spanish company is completing its first operations in two villas in unique and exclusive locations in Ibiza and Formentera, which are in great demand.
This is a unique property, worth from 2.4 to 3.4 million euros each, which is sold in 1/8 shares. Thus, with an investment of 300,000 euros or more, a family can legally own an eighth of the property and enjoy it for 6 weeks a year, 2 of which are in high season.
In addition, the company emphasizes that the owners do not need to worry about property management, as Vivla is involved in this process and charges 350 euros per month. This price includes the services of Vivla as an agency and all the costs of maintaining the property, such as gas, water, electricity, Internet, property tax, insurance, cleaning, and landscaping.
"Vivla’s first residences for sale in Ibiza and Formentera include personalized service to make the owner feel at home and enjoy his property," explains the company.
This service offers everything from indoor and outdoor equipment to storage rooms, individual attention, cleaning, and maintenance of the garden and pool.
To distribute the weeks to use the property, co-owners must choose their preferences in the application every year, and it is the Vivla real estate manager who will make the final distribution, guaranteeing two weeks of stay in high season.
The advantages of fractional purchases of this type of second homes include real-time adjusted prices and the delegation of related bureaucratic and operational procedures. For this reason, the co-ownership formula is becoming popular every day, as it combines the best of the hotel business and rental with the benefits of ownership, without the feeling that you are paying for an unused asset.
"In the coming years, we expect significant growth in the sector of fractional ownership of second homes, as we see great interest and high demand in areas such as the Balearic Islands, Marbella, Costa Blanca, Sotogrande, and Costa Brava," explains Carlos Gomez, CEO of Vivla. He noted that Madrid was one of the most sought-after cities, particularly among Latin American customers interested in the most exclusive areas.
As an additional advantage, Vivla helps resell fractions either on the free market or Vivla. Moreover, the real estate department of the Garrigues law firm, which has national and international authority, has developed its advanced legal model, which covers all legal aspects and is unique in this sector, to provide buyers with transparent and secure transactions.
Gomez stresses the importance of this co-ownership model in Spain, one of the world's leading holiday home markets, "because it fills a gap in the offer of a real estate product that did not previously exist in this country."