Yes, we know, as estate agents we would claim that there really has never been a better time to buy a property here on Lanzarote. But in our defence a number of truly key economic factors are now colluding to add some serious weight to this assertion,
Bank Lending Up
Spain is at a very different point of the recovery cycle to the UK. Back in Britain quantative easing appears to have helped to maintain buoyancy in the property market, indeed to such an extent that mortgage lenders are now reining back and making it tougher for new applicants to get finance.
Here in Lanzarote the opposite is true…the banks have been encouraged to increase mortgage lending and all of a sudden they’re scrambling to find new customers, after seven years of keeping the breaks on, making it easier to get finance than at any other time since the onset of El Crisis in 2008 and as recently reported by Spanish Property Insight banks are now marketing attractive new deals
Interest Rates Down
In part this push can be attributed to the fact that the European Central Bank has reduced the Euribor rate to record low levels. This has also helped to bring the cost of borrowing down for potential buyers as the ECB and the Spanish government focus on reinvigorating the property market.
House Prices Down
According to local Tasadors, or professional property assessors, house prices here on Lanzarote look likely to continue to fall during the course of this year. Placing buyers in a serious position of strength as they can chance their arm with an offer on their dream property, safe in the knowledge that this is currently more likely to be accepted. On the ground reports suggest that properties are currently changing hands at anything up to 20% below the quoted asking price.
Despite a recent drop against the dollar the pound continues to perform well against the euro, currently hovering at the 1.25 euros to the pound mark, which historically speaking is the best rate for some years. So this means that UK buyers are currently able to get more for their money.
Tourist Figures Up
Most foreign investors are looking to buy a rental property here on Lanzarote, something that will earn them an income when they are not using it. And the foreign tourist figures just keep improving, so far this year the island has welcomed 1.6 million holidaymakers,according to Lanzarote´s Centro de Datos, up by nearly 15% on 2013, with British tourists accounting for around 50% of this annual influx.
These numbers look set to keep growing too, as the economic news from the UK just keeps getting better and better. With interest rates remaining low and unemployment falling to record low levels too, this means that more Brits are in a position to enjoy a break on Lanzarote than at any time over the last eight years.