Proof that the Lanzarote property market is really on the up was provided this week in the form of new mortgage lending figures on the island, which reveal that approvals have risen by a huge 92% during the first eight months of 2015.
Spanish banks really drew their claws in after the onset of the financial crisis in 2007, leading to a spate of repossessions across the mainland and the Canary Islands. But since the turn of the year they have started to turn the taps on once again, making it much easier for foreign buyers to take out a mortgage here.
You could be forgiven for thinking that this upturn is related to a growth in confidence or improvements in the local economy. However that´s not the case, as the increase in lending is solely related to the fact that the banks have been ordered to create more credit by the European Central Bank. Who earlier this year embarked on a massive 1.1 trillion quantitative easing program that is designed to kick start the still stagnant Euro zone economy.
Here on Lanzarote that has resulted in the approval of 1197 mortgages during the period from January to August this year, representing a total loan value of €174 million. By comparison just 1382 mortgages were rubber stamped during the whole of 2014.
All of this means though that it is now easier than at any time since the onset of the crisis in 2007 to secure a loan deal from local banks. Providing overseas investors with yet another good reason to invest in the Lanzarote property market, alongside other factors such as a strong pound and low prices.