New research reveals the Canary Islands are becoming
increasingly popular with overseas investors. In particular buy to let
properties are doing exceedingly well.
According to a study by Globaledge.co.uk the popularity of the
Canary Islands amongst property investors has rocketed. In the survey
Tenerife appeared in the top ten, followed closely by Fuerteventura.
Regions Costs Teguise in Lanzarote, Palm Mar in Tenerife and Caleta de
Fuste in Fuerteventura all made the top 70 most sought after locations.
Overseas property specialists David Stanely Redfern were not
surprised by the results. They claim the Canary Islands are attracting
an increased number of investors due to its year round sunshine and
excellent returns on rental holiday homes. Liam Bailey head of
international research for David Stanley Redfern explains:
“Though never scorching, the Canary Islands is warm all year round, and Tenerife tourism is on the rise again.”
“Occupancy on Tenerife property will be between 80 and 100%,
allowing investors to make rental yields of between 8 and 10% depending
on how much they use it themselves,” adds Bailey.
According to the specialist an area worth investigating is Pargue
don José in Tenerife. The site is ideal for holiday makers and is
situated near Las Galletas in Costa del Silencio- south of Tenerife
famed for its volcanic scenery.
“As an investment, Parque don José has bucket loads of potential,
especially for holiday home investors, i.e. who intend to make money
from its rental when not holidaying in it themselves,” says Bailey.
“Capital appreciation on these apartments is likely to be around 10%-15% per year.”
However potential investors must be warned that properties in Tenerife tend to be higher than some of the new emerging markets.
“But you are paying extra for the safety of buying an existing property that you can use/rent-out straight away,” adds Bailey.
What’s more the property market of Tenerife is established, secure
and its infrastructure is well developed. The island is suited for an
abundance of tourists and properties are easy to market as a result.
This makes holiday rentals on the island very easy.
New developments in the region are set to encourage further interest
in the Canary Island. Such developments include a new five star hotel,
an artificial beach and a spa. However it’s worth noting that Parque
don José has received an EU grant. With this grant more developments
are sure to take place and push property prices up in the near future.
FinanceDaily
