Lanzarote is an ideal location for anyone planning to invest in overseas property. And is located just a four hour flight from the UK, in close proximity to the African coastline.
Since tourism first took off here back in the 1970´s thousands of British buyers have bought property in Lanzarote as an investment. Usually in order to rent their villa or apartment out to other tourists, a lucrative business when you consider that a weeks rental in a typical villa starts from about €600 per week. Many of these buyers will have been attracted by the islands incredible climate, which creates a year round holiday season. So investors enjoy returns for 12 months of the year.
There are plenty of good quality, English speaking estate agents in Lanzarote who overseas investors can contact. They offer a cross section of different property types, ranging from small studio apartments through to large and luxurious holiday villas. Local agents are also happy to help with opening local bank accounts and other administrative tasks.
Anyone trying to just get their foot on the first rung of the ladder should think about a starter investment. Apartments in Lanzarote are available from as little as €50,000 and can be rented out from €200 per week upwards. Most are located on safe and secure complexes so owners can happily lock up and leave. And if purchased in one of the main resorts then they can also expect to enjoy returns all year round. Villas are obviously a more expensive proposition but thanks to the current economic climate there are plenty of bargains around as prices have fallen here considerably since 2007. Expect to pay around €200,000 for a basic two bedroom property with its own private pool.
Lanzarote´s major plus point for investors is it buoyant tourist industry. The island welcomes around 1.5 million foreign tourists every year along with a good quantity of arrivals from the Spanish mainland too and is particularly busy during the Christmas, Easter and summer holiday periods. The majority of foreign tourists hail from the UK and their numbers have actually risen by 20% this year despite the economic downturn in the UK. So attesting to Lanzarote´s enduring popularity.
So take a long look at Lanzarote if you are planning to invest in property overseas. This little gem in the Canaries could provide you with a great next egg for many years to come.