Finding real-estate for timeshare and other vacation-ownership developments has been challenging over the last few years as land best suited for resorts in popular destinations was snapped up by other developers.

Mexico is home to a growing number of timeshare resorts, including the Four Seasons Residence Club, Punta Mita.

Now, developers of timeshare properties again are finding land in other countries and in the U.S., particularly where condominium and condo-hotel developers are flailing.

Giamalva NORTHCOURSE

"As the credit market puts its grip on the ability of desirous consumers to purchase condos, we will see both the fractional and timeshare industry take a lift," said Peter Giamalva, president and managing director of research and advisory firm Northcourse Leisure Real Estate Solutions in Parsippany, N.J. "Developers will take a portion of a condo-hotel building and convert it into timeshare, for example."

Gilbert INTERVAL

Many condo and condo-hotel projects are being forced into other types of developments as the overall real-estate market and second home ownership market suffers.

"The bad news in one business creates opportunity in another. We will see a lot of opportunities ... for our industry where the economics are more favorable," said Dave Gilbert, executive v.p., sales and marketing for Interval International in Miami.

Howard Nusbaum, president and c.e.o. of the American Resort Development Assn. in Washington, also said developers now have more opportunities than in recent years.

"Land acquisition was getting difficult two years ago because of the real-estate boom, but the downturn in the condo market has loosened the market quite a bit," he said.

In Florida, where prime beachfront property and land near the theme parks in Orlando has been next to impossible to find in recent years, the flailing condo and condo-hotel market may lead to more development opportunities.

"In Orlando, the obvious land has been taken," Gilbert said. "But, if a good timeshare marketing company could align with a condo developer, that might be an interesting alternative."

The condo-hotel downturn is providing timeshare real-estate options in other areas of the U.S. as well. Some condo and condo-hotel companies are pulling out of Las Vegas, and the coastal areas of North Carolina and South Carolina are suffering as well, according to Gilbert.

Developers also are finding opportunities in the Caribbean.

Certain areas of the Caribbean, such as Aruba, have been heavily developed for years and timeshare companies have had difficulty finding property. However, other markets in the islands are not as well developed.

"The Bahamian government is encouraging development along the outerlying islands," Gilbert said. "With its very close proximity to Florida, there is a large client base for the Bahamas."

Land in nontraditional markets also is more available in Mexico.

"U.S. citizens can drive down to Mexico and visit Nuevo Vallarta, Riviera Maya and other areas," Gilbert said. "The price of real estate is still reasonable, construction is reasonable and labor is relatively reasonable."

Costa Rica and Belize also are up-and-coming areas.

"Those are two areas now where the real-estate is very affordable, relatively," Giamalva said. "It is not just the eco-friendly and adventure traveler going there anymore; it is the mainstream traveler." hmm@questex.com