Lanzarote property prices are at their cheapest for many years as a result of the economic crisis and the depreciation of sterling against the euro. Which has helped to drive down demand on this popular holiday island.
The last two years have had a hugely negative impact around the world – and the Lanzarote property market has not been immune. With prices falling back to 2003 levels. Thanks to the combined impact of the credit crunch and the weakness of sterling against the euro. Which has especially dampened demand in the key market of the UK.
Traditionally British investors have driven the island property market. Expatriates make up around 6% of the islands total population and many British and Irish nationals own and operate businesses here. Whilst many thousands more have invested in holiday apartments and villas in Lanzarote in order to rent them out to tourists. A lucrative business given the fact that the island enjoys a full twelve month rental season – unlike other parts of Spain where the holiday period is restricted to just three months of the year maximum.
Now that local banks have started to lend again demand is once more on the rise. And property in key resorts such as Playa Blanca and Puerto del Carmen is the most popular with investors. As both areas ensure a year round flow of tourist guests.
There´s a large selection of property in Playa Blanca for investors to choose from. Villas currently start at around €200,000 – which buys a two bedroom property with private pool. Whilst apartments cost less – with basic studio units available from as little as €70,000.
Playa Blanca has grown enormously over the last decade – emerging from its former shell as a small fishing village to become the fastest growing conurbation on the island. Buoyed by its great microclimate and excellent beaches. As well as a wide range of restaurants and its close proximity to key tourist attractions such as the Timanfaya National Park. Which is home to Lanzarote´s 300 plus (now dormant) volcanoes.
Puerto del Carmen is the largest resort and still the most popular with tourist visitors. And is also the most popular spot with expat residents. Recently the local government has pumped €16 million into the resort in order to improve facilities and amenities. Keeping it competitive with other newer destinations around the world such as Egypt and Turkey.