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Greg Salley, managing director at Equity Residences, looks at how co-ownership is reshaping luxury travel and investment.
Words by Greg Salley, managing director at Equity Residences
For decades, a second home symbolised continuity and comfort, a fixed place to return to year after year. Yet today, that model is steadily losing ground. Across Europe and the UK, demand for traditional holiday homes has softened as buyers reassess whether the classic approach still aligns with how they travel, invest and live.
One of the most significant issues is underuse. Despite the financial and emotional investment that goes into owning a holiday property, sector research consistently shows that the average second home is owner occupied for only a small portion of the year. Consequently, these homes are a money drain until they are sold. In an era defined by flexibility, that level of inefficiency is prompting many prospective buyers to question whether sole ownership still makes sense.
Mounting practical and regulatory pressures
That re-evaluation is being fuelled by mounting practical pressures. Maintaining a property at a distance is no small task. Gardens, pools, security checks and the ongoing cycle of repairs can turn a dream purchase into a year-round logistical commitment. The complexity intensifies for international buyers who face unfamiliar regulations, language barriers and evolving residency requirements.
Regulatory shifts have become a decisive factor. Several European countries have begun tightening rules around non-resident ownership, particularly in high demand regions. France, for example, has moved to limit foreign second home purchases in certain ski resorts, creating uncertainty for buyers who once viewed the region as a natural extension of their domestic property market. For many, the result is hesitancy about committing significant capital to an asset that may be harder to manage or eventually resell.
This helps explain the strong early interest in Equity Residences’ recently launched Equity Euro Fund, which has already attracted around 5 million euros.
Despite the financial and emotional investment that goes into owning a holiday property, sector research consistently shows that the average second home is owner occupied for only a small portion of the year
A shifting travel mindset among modern buyers
Expectations around travel have also changed. The modern luxury traveller is less interested in returning to the same destination repeatedly. They seek variety, culturally distinct experiences and the ability to move fluidly between regions. A single second home, no matter how idyllic, can feel limiting to those who see travel as a form of ongoing exploration and education rather than an annual ritual. This shift is especially evident among younger buyers. Industry data shows that co-ownership buyers tend to be younger than traditional second home purchasers, reflecting a generation that prioritises access and experience over full ownership.
Why co-ownership is moving into the mainstream
It is against this backdrop that co-ownership has gained momentum. Unlike timeshare models of the past that are untethered to real estate ownership, today’s co-ownership structures provide genuine equity, legal clarity and access to high quality homes without the disproportionate financial burden. The concept is straightforward: multiple owners share the cost, usage and long-term value of a property in proportion to their investment.
This model directly addresses the issues that have eroded enthusiasm for traditional ownership. Because buyers purchase only the amount of time they expect to use, the investment becomes far more efficient. The properties themselves are typically professionally managed, meaning gardens are tended, pools maintained and repairs handled without owners needing to orchestrate them from abroad. For many households, the appeal lies in the ability to arrive to a property that is consistently in top condition, without the operational demands that once accompanied second home ownership.
There is also a macroeconomic dimension. Well managed co-ownership properties are often occupied far more frequently than traditional second homes. Some operators report upwards of eighty percent annual occupancy, a figure that contrasts sharply with the underuse typical of sole owned properties. This creates a more sustainable model for local communities, bringing steadier economic activity to areas that have long been affected by the seasonal vacancy patterns of holiday districts.
The modern luxury traveller is less interested in returning to the same destination repeatedly
Concerns from prospective buyers tend to focus on availability and resale. Both have evolved considerably. Modern co-ownership programmes use scheduling systems designed to match owners with differing travel patterns, reducing competition for peak periods. Reported resale activity across established operators shows strong liquidity, with shares often reselling faster than full property transactions in the same regions and in many cases achieving appreciation above initial purchase prices.
None of this means traditional holiday homes will disappear. For some families, the emotional continuity of a single place remains irreplaceable. But the broader trend is clear. As travel patterns, financial expectations and regulatory environments continue to evolve, co-ownership offers an alternative that aligns more closely with contemporary lifestyles and common sense. Why pay for more than you need and why anchor yourself in one location?
Buyers are increasingly drawn to models that balance flexibility with stability, experience with investment and enjoyment with practicality. Co-ownership sits at the intersection of all three, and this is why it has moved from niche concept to mainstream consideration for the modern luxury traveller.
