Despite the
recent fears of a property
crash in Spain, Tenerife’s
property sales are still
rising. Fears that the housing
bubble in Spain will shortly
burst have led to an increase
in property sales elsewhere
around the mainland. Tenerife,
fortunate to have all year
round perfect weather, is well
placed to cater for the large
number of people from the UK
& Ireland
wishing to purchase somewhere
in the sun. Tenerife must be
viewed as a ‘micro-market’,
operating within the larger
Spanish economy but
independent to factors
affecting a crash from the
Spanish market.
-
The
property boom in the Costas
looks to slow due to an over
supply of property,
corruption scandals and land
grab issues, diminishing the
confidence of the buyer.
-
In 2001
the Tenerife government
voted a moratorium on new
touristic building, limiting
the supply of new homes thus
preventing over building.
Despite the restricted
supply, with no artificial
media frenzy similar to that
incited on the Costas, price
rises were more moderate.
-
Currently, property in
Tenerife continues to rise
in value, while the Costas
stagnate and are even
expected to drop in the next
12 – 18 months.
-
The
foreign buyer market remains
strong in Tenerife. Research
shows 42,000 homes are owned
by the British alone, and
property owners are
achieving high rental
income.
-
The
incentive of year long
sunshine and the increasing
number of tourists, 6
million in 2006, has led to
a demand for low cost flight
operators to obtain new
routes.
-
Tenerife’s resident
population is one of the
fastest growing in Europe.
New mortgage lenders and
applications are increasing
and rental costs are high,
encouraging locals to buy as
soon as they can and
ensuring local demand
remains strong.
These
factors combined with future
predictions, would indicate
that demand for property will
be rising correspondingly, due
to the close correlation
between the number of visitors
to the island and the number
of properties sold to
foreigners.
Fanabe,
Tenerife
Prestigious
4 bedroom beachfront
villa in
Tenerife's most exclusive area,
Price: £886,000
·
Immaculate & exquisitely
furnished
·
4 bedrooms, 4 bathrooms
·
Guest apartment
·
Community pool
·
Near amenities
Leslie
Beeson of Savills associates
Tenerife Property Shop
comments “We have recently
encountered a sharp rise in
the number of investors who
have sold out of mainland
Spain and chosen Tenerife in
which to reinvest their
money”.
The future
for property in Tenerife
remains positive. A recent
report commissioned by Halifax
Holiday Insurance Services
identified that almost all
popular destinations of today
will experience dramatic
change by 2030. However,
research has shown Tenerife
will be relatively unaffected
by global warming,
experiencing only a few more
tropical storms and some
coastal erosion. It is only a
matter of time for property
pundits to jump on the global
warming band wagon and start
to analyse the effects on the
international property
industry, and when they do,
Tenerife will benefit
enormously.
Further information:
www.savills.co.uk/abroad
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