Property Hot Spots On the Island of Fire

The market for property for sale in Lanzarote is driven by tourism. And despite the current credit crunch and economic downturn visitor numbers to this small speck of Spain – which lies just 70 miles off the coast of Africa – have actually increased by around 8% during the first half of 2008.

As a result of this buoyant tourist market (over 1 million British and Irish visitors visited during 2007 alone) property on the island remains an attractive proposition for overseas investors. Not least as owners of holiday rental properties can enjoy year round rental returns thanks to the island’s incredibly clement climate. With temperatures never dropping below 20C even in the depths of winter.

So where are the current hot spots for investors on the Island of Fire?

Puerto del Carmen
Puerto del Carmen is the spot where tourism really took of on Lanzarote. And this former fishing village is still the islands most popular resort today – thanks in no small part to a 6km stretch of golden sands which acts as a magnet for tourists.

Puerto del Carmen was developed in the 1970´s – with the bulk of building stock given over to apartments and apart hotels, rather than hotels and villas.

The resort is currently undergoing something of a renaissance as the local authorities are planning to improve the infrastructure and overall tourist experience by pedestrianising the entire sea front. A long awaited new golf course is also set to open just outside Puerto del Carmen this summer – which is expected to attract more moneyed tourists to the resort.

Property prices here still remain well below the average for other Spanish sunspots – with basic one bedroom holiday apartments, ideal for rental – available from as little as €80,000. Owners can expect rental returns in the region of €300 per week.

Playa Blanca
Playa Blanca is Lanzarote´s newest resort – and was developed along very different lines to Puerto del Carmen. With luxury hotels and villas at the forefront of the planning mix.

Despite the fact that Playa Blanca only started to evolve apace during the 1990´s it is already well established as the islands second most popular resort. Due to the fact that it enjoys the best micro-climate on Lanzarote thanks to its location at the southern tip of the island. And also boasts the best beaches – namely the six beautiful coves at Papagayo.

Construction and development here has grown apace over the last decade and as a result property prices have remained below the norm for the rest of the island. With investors able to pick up two bedroom villas with private swimming pools from as little as €250,000. Rental returns are equally attractive – with even the most basic holiday villa with pool commanding a weekly rate of €550 plus.

Puerto Calero
Puerto Calero is Lanzarote´s upmarket marina resort. And is an exclusive residential enclave – boasting some of the islands most impressive properties.

The marina was developed under the aegis of Pepe Calero back in the 1980´s and today is firmly established as one of the most attractive harbours in the Canaries. Attracting a multitude of millionaires and their yachts.

Property here is certainly at the high end of the market. As there is a limited supply of luxury villas available – with very few coming onto the market. Those that do command prices of €750,000 upwards – and show no sign of depreciation even under current market conditions.

Browse more Lanzarote property by visiting Lanzarote Guidebook – which features a selection of over 2300 properties for sale across the island