Buoyant Tourism Aids Lanzarote Property Market

Despite speculation that the credit crunch could spell the end for holidays abroad British tourists are still flocking to the Canary Island of Lanzarote in ever increasing numbers. According to figures just released by the Spanish airport authority AENA – who have registered an increase in visitor numbers from the UK of 15.6% for the first half of 2008. An upsurge that is helping to generate a buoyant level of demand for property in Lanzarote – despite the current international economic situation.

Lanzarote has long been a hot favorite with British holiday makers and property investors alike. Located just seventy miles off the coast of Saharan Africa the island enjoys a clement year round climate with temperatures that rarely fall below 20C. Creating a twelve month rental calendar for the owners of holiday apartment and villa properties.

For a small island Lanzarote deals in pretty big tourist numbers – attracting over one million British and Irish visitors alone annually. Figures that look set to increase further in 2008 – as AENA´s statistics reveal that British visitor numbers to the island have already broken the half a million barrier during the first six months of this year. With 509,755 tourists from the UK enjoying a holiday on the island – up 15.6% on the first half of 2007.

Irish tourist numbers have also increased. Up 5.9% across the same period – with 123,047 visitors from Eire spending their week in the sun on Lanzarote. So cementing the islands position as the most popular destination in all of Spain with Irish tourists.

Total foreign tourism has increased 4.9% during the first half of 2008. With significant increases also recorded in the Dutch, Swiss, Norwegian and Swedish markets. Whilst tourism from the Spanish mainland has also increased – up 3.7% in the first six months of the year.

All of which makes happy reading for the owners of apartments and holiday villas in Lanzarote. With many private owners and island based holiday companies reporting a significant upsurge in bookings – and forward numbers also looking bright into the autumn and winter months.

This buoyant tourist market is helping to shore up the islands property market – as local fundamentals remain strong despite the international picture. Although prices have certainly softened in recent months – as local banks impose tighter lending criteria and more realistic valuations on lenders.

But there have been no market wide price falls as is currently the case in the UK and elsewhere – and demand for property on the island remains relatively strong.

Currently apartments in the main resorts are priced from €70,000 upwards. Whilst villas with pools are available from €250,000 upwards. Making it relatively affordable to invest in a holiday rental property. Returns are enticing too – as apartments rent out from €300 a week with villas commanding a return
of €650 plus.