Only recently written off as Europe’s basket case, Spain’s economy is on the way up again and is set to grow during 2016. And here on Lanzarote all the signs are that the island is set for a record year, with profound positive effects for the local property market.
Since 2008 Spain’s property market has been in reverse. But now, according to official figures we are starting to see some positive growth, with the Canaries recording growth of 2.4% during the course of last year, according to the national Ministry of Development.
Much of this growth has been fuelled by the return of foreign buyers to the market. Indeed according to official figures nearly 14% of all properties purchased in Spain during the third quarter were bought by foreigners, with the British leading the way.
This tallies closely with the upsurge in tourist arrivals witnessed on Lanzarote over the last twelve months. During the course of 2015 over 2.1 million foreign tourists took a break on the island and just over 50% of these visitors arrived from the UK, which has long been Lanzarote’s largest market.
Obviously where tourism leads property investment tends to follow. As many visitors fall in love with the island and seek to make their connection more permanent by buying a holiday or retirement home here, or even just moving out here permanently, lock stock and barrel. So demand for decent properties is clearly on the up.
Inevitably, greater demand for tourist accommodation means that canny owners can translate this into more income. Every year more tourists visit Lanzarote looking for interesting properties to rent for their holidays and those in the know are taking advantage of this, generating decent incomes from their investments.
This model applies not only to resort based apartments and villas but also rural properties, which are also in demand. Currently we have an ideal investment on our books in the picturesque northern village of Haria, in the Valley of 1000 Palms. Where we have a five bedroom farmhouse for sale that has already been subdivided into apartments, making it ideal for rental investors.