Buying a house in Lanzarote
Once a vibrant holiday resort and an overseas investment hot spot the resort of Costa Teguise in Lanzarote is starting to hit the buffers.
Whilst other sectors of the Lanzarote property market have remained relatively buoyant the island’s third largest resort, Costa Teguise, is displaying clear signs of a downturn. With major new developments now sitting unoccupied and a number of estate agents closing their doors for business altogether.
Ever since tourism first took off back in the 1970´s Puerto del Carmen has been the engine room that has driven demand for property in Lanzarote. Transforming a tiny fishing village known locally as La Tiñosa into the biggest resort on the island.
As property paralysis starts to grip the UK – with both home sales and new mortgage approvals falling by 60% plus in August – demand for property for sale in Lanzarote is showing signs of decline. Despite the fact that overseas visitor numbers to the eastern most Canary Island continue to rise.
More on British ‘Brickor Mortis’ Affecting Lanzarote Property
British visitor numbers to Lanzarote have jumped by 15.6% during the first half of 2008. According to figures recently released by the Spanish airport authority AENA. An unexpected upsurge that flouts fears that the credit crunch could kill off overseas travel and which is also helping to maintain buoyant demand for property in Lanzarote.
The number of British and Irish residents planning to relocate to Lanzarote has jumped by 35% in the second quarter of 2008. According to figures just released by leading Lanzarote property portal, Lanzarote Guidebook.
Any island based estate agent will tell you that there’s “too much product out there at the moment”. An over supply of property for sale in Lanzarote which has been created by the growing credit crisis, falling pound and weakening consumer confidence in key overseas investment markets such as the UK. But over supply and declining demand is not the whole story. As certain types of property are still generating interest, enquiries and sales.