Second home alternatives like destination clubs and fractionals have the lion’s share of the luxury real estate market in the U.S., and the European market is warming up too. Helium Report has the numbers on some of the key players.

European Destination Clubs

• The Oyster Circle was Europe’s first premium property-based destination club. Based in Dublin, this club has properties in eleven destinations worldwide, covering locations appealing to the club’s European membership like Dubai, Cape Town and Portugal. All of The Oyster Circle’s homes are valued at over €3 million.

• London-based Pure Worldwide Private Residences is a £51 million property fund lunched in Spring 2007. Although not yet fully operational, they plan to acquire 30 luxury residences with an average value of £1.3m sterling in about 20 locations. The fund is planned to be limited to 300 investors, with an entry-level investment around £170,000, which entitles the investor to minumum five weeks annual usage of the properties.

Fractional Ownership

Fractional ownership clubs, also called private residence clubs, are also finding their legs in the European market. Mainly spearheaded by American developers, private residence clubs are staking some of the best real estate in Europe.

• Resort Equities’ Cologna Della Via is a 500 year-old restored farmhouse designed by Kay Isaacson-Leibowitz, and 1/8th fractions sell for $350,000.

• Nineteen restored farmhouses on the 4,200 acre Castello di Casole estate offer owners glass-tiled heated infinity pools, private patios, and wood-burning ovens outside of the vineyards and olive groves that surround the residences. 1/10 fractions sell in excess of $500,000.

• Palazzo Tornabuoni, was once the home of Pope Leo XI and the Medici family. Now 36 one to three bedroom residences are available, complete with fresco-covered ceilings and a private wine cellar. 1/8 shares sells for anywhere between $220,000 and $550,000.

• In London, the Marriott Grand Residence Club is offering 49 one to two bedroom apartments in an Edwardian-style townhouse. Located in Mayfair at 47 Park Street, fractional ownership details and pricing are available upon request.

• In Portugal, the Vigia Group is one of the leading luxury resort developers in Portugal with seven resorts in the Western Algarve and one in the Alentejo. 1/12 shares start at a very affordable €27,125.

For a complete listing of fractional ownership options available in Europe, please see our private residence club directory or download our fractional guide. Helium Report’s full Decision Guide to Destination Clubs is additionally available to download. If you’re not ready for the commitment of buying into a fractional property, villa rental is a good alternative. You can rely on operators like Villazzo, or send us an email to request Helium Report’s Mini Guide to Villa Rental.

Conversion rates based on 07/19/2007 estimates