New York Real Estate

The Lanzarote property market is showing renewed signs of buoyancy after the dark days of 2008 and 2009.  When the economic crisis and the deprecation of sterling against the euro eroded demand from overseas investors.  Exacerbated by the reluctance of local banks to extend mortgage credit.

Lanzarote has in fact long been a property investment hot spot thanks to the fact that this small Canary Island is a big favourite with tourists and boasts a great year round climate.  Which in turn produces twelve months worth of rental returns for owners of Lanzarote villas and apartments.

Package holidays first took off on the island back in the 1970´s and Lanzarote became quickly established as a popular destination. Especially with the British – who account for around 50% of all visitors even today.  Where tourism leads property investment tends to follow – and during the 1990´s thousands of UK investors snapped up villa and apartments here to use either as holiday homes or to rent out to fellow holidaymakers.

Over the last couple of years this market has flatlined though – thanks to the effects of the economic crisis.  But since the turn of the year both local estate agents and island property portals have noted a marked increase in the number of enquiries being made by foreign buyers.  Whilst local banks have also started to loosen lending criteria once again.

Property in Puerto del Carmen remains one of the hottest options as this is the largest and oldest tourist resort on the island.  And is also home to a large expatriate community – with many British and Irish residents owning and operating businesses here.  Puerto del Carmen is nominally divided into two main zones – the Old Town and the New Town.  And has also recently enjoyed a huge injection of €16 million as the local government strive to improve the tourist infrastucture in order to maintain the resorts competiveness.

Playa Blanca in the south of the island is another popular area for overseas investors.  As this former fishing village enjoys the best microclimate on the island –  making it especially popular with tourists during the winter m months, as well as the summer.  Property in Playa Blanca is also a little cheaper than in Puerto del Carmen due to a slight oversupply created by the building boom of the late 90´s.