In Brazil, smaller cities with upscale tourism, far from large metropolises and with under 100,000 residents, are emerging as centers for fractional ownership.
Notably, Caldas Novas in Goiás and Gramado in Rio Grande do Sul lead with the most projects.
Fractional ownership lets people co-own vacation or luxury properties, making high-end assets more affordable.
It provides benefits like lower maintenance costs, possible rental income, and access to upscale properties.
Yet, it has downsides such as restricted use, owner disputes over management, and complex resale of shares.
These cities attract attention due to unique features like natural attractions, thriving ventures, and theme parks.
The allure of Caldas Novas lies in its thermal waters, reaching up to 70°C. Gramado, on the other hand, draws visitors with its vibrant cultural scene and festivities.
André Catrocchio of Hectare Capital points out the growing developer interest in these areas. He predicts a surge in their popularity as vacation spots for local tourists.
Hectare Capital boasts significant stakes in this trend, with investments in numerous projects across several cities, as highlighted in Calfat’s research.
Market Expansion
Highlighting the sector’s success, Gramado Parks recorded a groundbreaking R$ 117.2 ($23) million in sales to 1,300 families last winter.
Following suit, WAW Group’s 2023 sales hit R$ 1.2 billion in fractional properties, with expectations of a 20% increase this year.
Top Cities for Fractional Ownership in Brazil:
- Gramado (RS)
- Caldas Novas (GO)
- Olímpia (SP)
- Campos do Jordão (SP)
- Salinópolis (PA)
- Porto Seguro (BA)
This pattern underscores the growing appeal of fractional ownership in less populated areas.
It reveals a significant shift in real estate investment and tourism, emphasizing the strategic importance of these smaller cities in the broader market landscape.