There really never has been a better time to invest in the property market in Lanzarote. And here local estate agent Oliver Horton explains why…
The property market is in the early stages of a welcome rebound. Following the crisis years, which saw prices fall in the region of 30-40%, the market is now offering up an ideal opportunity for those wanting to realise their dream, of a holiday home in the sun. Prices have found a floor, as the flow of bank repossessions and distressed properties coming onto the market has all but dried up. Of course it is not just supply that is determining prices, other factors such as record tourism numbers, a strengthening Spanish (and especially Canarian) economy, and an additional bonus for British buyers, the significantly stronger pound have all combined to give buyers confidence to invest. The new pension flexibility rules introduced in April, has also given UK buyers access to investment funds previously out of their grasp.
Tourism statistics continue to go from strength to strength. 2014 saw Lanzarote receive over 2 million visitors, an overall increase of 10.5% on 2013. More recently, the first half of 2015 has seen continued growth of 4.1% versus the same time the previous year, while occupancy rates have reached record highs. There are a number of factors driving this growth, not least that Lanzarote is both a diverse and fantastic place to visit all year round. This has been demonstrated by the continued growth of flight connections and the expansion of new markets. While the majority of non-Spanish visitors continue to be British, German & Irish, countries such as France and Italy are seeing phenomenal grow. Based on 2014 figures, the number of French, Italian & Dutch visitors is up 718%, 162% & 115% respectively since 2010. France is now the fourth most important market, with arrivals up 60% over the past 12 months alone.
The Island’s main tourist resorts have evolved over the past few years, with considerable investment into their modernisation taking place, in order to help them continually improve their competitiveness in the global market place. On the back of this the choice and quality of hotels is also now rapidly improving, which is great news for the Island as it means it can now comfortably cater for high-end tourism, something which the Island has not traditionally been associated with. Infrastructure also continues to improve, with the 3rd luxury marina having just opened in the Capital, Arrecife. Importantly, planning laws remain strict, ensuring the Island’s heritage remains intact. This is imperative to the Island as it is one of the main factors differentiating it from the other Canaries. While these projects have undoubtedly been a great success in boosting tourism, the Island has also been a benefactor from external issues arising in Greece, Africa and the Middle East, as holidaymakers and investors alike, understandably prefer a stable environment.
Lanzarote caters for a broad range of tourism and lifestyle options. While many continue to believe that the Island is just a place to visit for a week of sun and sangria beside the pool, rural and sports related stays are seeing phenomenal growth. The Island provides the perfect training and competition ground for athletes, showcased by the Ironman, which attracts an international field of 2000 competitors each May. This is supported by a calendar packed full of sporting events aimed at both local and international athletes. In recent years the Island has hosted the likes of the Ferrari Formula 1 Team, Jenson Button and countless other professional athletes and teams holding training camps on the Island.
Happily, residents and holiday homeowners alike are now benefitting from a surge of retailers opening on the Islands, who have been attracted here for the reasons mentioned. This has vastly reduced the cost of furnishings and electrical goods, while offering choice like never before. The latest wave has seen Mercadona open stores on the Island, and with H&M opening imminently and other chains on the way, Lanzarote feels like an Island on the move. With investment evident across many sectors of the Island’s economy and economic numbers backing this up, there never really has never been a better time to own your holiday home in Lanzarote.
For more information contact www.atlanticohomes.com