Lanzarote shows signs of property slowdown

Permalink: Lanzarote shows signs of property slowdown
by Gill Montia

Lanzarote, the easternmost of the Canary Islands, is showing signs of a property slowdown.

According to Lanzarote Guidebook, a leading property portal for the island, the effects of the credit squeeze and waning consumer confidence are already evident at the higher end of the market.

In the first two months of this year, demand for properties over €300,000 virtually disappeared.

However, interest from overseas investors in apartment and studio properties below €150,000 remained strong.

The shift can be interpreted as evidence that buyers are now concentrating on lower risk and lower cost properties.

This view is supported by the fact that Puerto del Carmen, the islands most popular resort, is retaining its popularity to the detriment of newer locations with less reliable rental track records.

Should a buyers’ market continue to emerge, Lanzarote Guidebook believes there could be bargains to be had at the lower end of the market.

For example, reliable investment opportunities can be found at Playa Blanca, the island’s southernmost resort, where properties on the Jardin del Sol complex start at €130,000.

In addition, Puerto del Carmen is home to the Princesa Apartments development in the heart of the resort; one bed apartments are being sold for €122,000.

Finally, a beachfront complex in Costa Teguise has a choice of studio, two bed and three bed apartments from €103,904.