The Canary Islands have long been a firm favourite with overseas property investors. As they enjoy decent weather all year round – and are located just four hours flying time from major tourist markets such as the UK and Germany. Making them ideal locations for a holiday rental investment. As owners here can enjoy rental returns for twelve months of the year. As opposed to the much shorter calendar offered by other locations such as the Balearic Islands.
The Canaries also boast a very stable tourist economy too. With around ten million foreign visitors enjoying holidays on these seven Spanish islands every year. The majority stay on Tenerife and Gran Canaria, the two largest islands. But Lanzarote also enjoys a steady stream of visitors too – with over 1.3 million visitors touching down on flights to Lanzarote last year alone.
As a result the Lanzarote property market is of great interest to investors – and offers decent returns during the current period of economic uncertainty. For those with cash to invest a second home abroad is now one of the best options available. As the stock market remains jittery and interest rates in the UK remain at record low levels.
There´s a wide selection of Lanzarote villas and apartments on the market currently. And prices here – as in the rest of Spain – have fallen sharply over the last year or two as result of the economic crisis. With some agents suggesting that they are now back to 2002 levels, spelling bargains for those with funds to invest.
Until recently the weakness of sterling against the euro was putting many investors off. But that has now changed too as the pound is trading at its highest level against the European single currency in nearly two years. And currently stands at around €1.20 to the pound.
Local banks have also started lending again, making it much easier for overseas buyers to secure a mortgage on the island. And that aside the property purchase procedure here is very simple. Buyers don’t have to be resident on Lanzarote and most of the paperwork is handled by local estate agents and lawyers on your behalf. Making it a relatively stress free procedure.
Which are the best areas to invest in? Playa Blanca and Puerto del Carmen are the two largest resorts and offer the most stable returns. As owners here enjoy a continual flow of tourists. Costa Teguise to the north is also a popular investment hot spot.