Higher Priced Spanish Property in Low Demand on Lanzarote

Tightening global credit conditions and waning consumer confidence are starting to make an impact on the Lanzarote property market according to figures recently released by one of the island’s leading property portals, namely Lanzarote Guidebook.

An analysis of enquiries relating to 636 properties for sale generated during the first two months of 2008 revealed that demand for properties priced above the EUR 300,000 mark had all but disappeared, whilst more modestly priced apartment and studio properties - especially those below EUR 150,000 - were still attracting a large amount of interest from overseas investors.  All this suggests that buyers are now concentrating on lower risk and lower cost property options – therefore it’s fair to say that higher priced Spanish property is currently in low demand on Lanzarote.

An additional interesting fact is that the tried and tested resort of Puerto del Carmen – the oldest and most popular on the island of Lanzarote – was the focus of the bulk of all enquiries, whilst newer locations with less reliable rental track records are currently about as popular with investors at the moment as yesterday’s tortilla!

This is a situation that is starting to impact upon estate agencies on the island as those with less well diversified stock portfolios which consist almost exclusively of top end luxury villas or those in emerging corners of Lanzarote are starting to feel the pinch.  And they are not the only ones; many of the more recent start ups are also feeling it – these are operations which blossomed during the boom of the last few years and who now lack both the experience and the financial clout to cope with a long lean spell without significant sales.

There are currently around 180 estate agents in Lanzarote in Spain, and you can probably expect this number to diminish by the end of the year because too many of them are chasing the same market of UK and Irish based investors.  Also, many lack the flexibility and local contacts to make inroads into the domestic market - so some sort of shakeout during 2008 is now looking inevitable.

From a buyer’s point of view though there are still a number of reliable investment options at the lower end of the market in Lanzarote.  And as conditions start to bite, sellers are now no longer in the ascendancy – making it hunting season for canny operators!

New Spanish Property Investment Opportunities in Playa Blanca, Lanzarote

Lanzarote´s southern most resort enjoys the best micro climate on the island and it currently offers a number of hot property investments too, such as the attractive one bedroom bungalows currently available with Freedom Properties on the popular Jardin del Sol complex.  These start from as little as EUR130,000 (around GBP 96,000 at current exchange rates).

Jardin del Sol is located close to the popular beach at Playa Flamingo and also boasts decent on site facilities such as an excellent communal pool.  Both factors which contribute to making property here absolutely ideal for holiday rental for example…but best of all, these properties come with an impressive rental record – historically enjoying 40 weeks of occupancy per year and renting out from around GBP 225 per week.  This means they can deliver a gross return of around GBP13,000 annually – a figure which could be optimised further with a small amount of modernisation perhaps.

On Playa Flamingo itself, Freedom are also currently marketing a rare two bed frontline property which commands even greater rental returns of GBP 460 per week thanks to its privileged position and excellent views down to the beach and across to Fuerteventura.  The bungalow is fully furnished to a very high standard and is available, with forward bookings in place, for EUR 450,000.

New Spanish Property to Market in Puerto del Carmen

Puerto del Carmen is Lanzarote´s most popular resort – and as a result demand for good quality apartments here is always high.

One of the best appointed complexes currently on the market is the Princesa Apartments development – which is ideally located on the cusp of the Old and New Town in the heart of the resort.  Properties at this development are available from the Puerto del Carmen based estate agents Inversiones Timanfaya.

These one bed apartments offer an ideal investment for anyone looking for a top quality holiday residence as they have been renovated and refurbished to a very high spec – featuring flat screen TV´s, satellite and wireless broadband connections and DVD players – extras which are all included in the asking price of EUR 122,000.

Beachfront Complex on the Property Market in Costa Teguise

Costa Teguise was originally designed and developed by the island born artist Cesar Manrique and is home to some of the best quality apartment accommodation on the island, including the upmarket front line complex Playa Roca – which boasts excellent facilities such as two swimming pools and which is just a couple of minutes stroll along the beachfront promenade from the popular beach at Playa Bastian. 

Location Properties are offering a choice of studio, two bed and three bed apartments on Playa Roca from EUR 103,904.  This is a price that includes renovation to the specifications of each individual buyer, and in the case of studio apartments also includes all of the ancillary purchase costs – such as taxes and notary fees, that would otherwise amount to an additional 10% of the purchase price.

Elsewhere in the resort Estupendo! are exclusively offering one bedroom apartments on the Los Carmenes complex which is situated in the area of El Trebol just a couple of minutes walk from the main resort beach, Playa Las Cucharas.  The apartments are being sold unfurnished, but Estupendo! have organised for furniture and refurbishment packs to be available at additional cost if required.  There are a selection of floors and positions available.  The properties are being offered at EUR 93,500 and are perfect for first time buyers or as an investment opportunity for either long term, or holiday letting.

As you can see, if you are interested in property for sale in Spain on Lanzarote but you’re put off by the higher priced offerings, there is still plenty available.

Page 1 of 1