Demand For Rental Property Surges On Lanzarote

The number of British and Irish residents planning to relocate to Lanzarote has jumped by 35% in the second quarter of 2008. According to figures just released by leading Lanzarote property portal, Lanzarote Guidebook.

Suggesting that the darkening economic situation in the UK and Ireland looks likely to lead to a growth in the number of people seeking a brighter future abroad.

The analysis of 791 enquiries for property for sale in Lanzarote received between April and June this year reveals that long term rental enquiries have jumped dramatically versus the first quarter of 2008. Accounting for 43.7% of all enquiries.

The vast majority of those looking to escape rising household bills and falling disposable incomes are seeking apartments to rent on a long term basis in the island’s main resort of Puerto del Carmen. Which is the epicentre of both the British and Irish expat communities on the island – as well as the main hub for employment opportunities for most new arrivals.

And with rents rising in the UK as the housing market there cools rental accommodation in the resort and across the island in general is certainly a more cost effective alternative – with one bedroom apartments starting from around the €500 per month mark (currently around £400).

Lanzarote also offers much cheaper food, fuel and utility costs – along with non-existent heating bills – thanks to the island’s year round clement climate.

Elsewhere, the demand for property for sale is starting to weaken and prices are softening – thanks to a 35% fall in mortgage approvals across the province of Las Palmas (of which Lanzarote is part). As local banks tighten their lending criteria and impose more realistic valuations on lenders – effectively helping to drive prices down. With all leading island estate agents reporting a growing quantity of price reduced property coming on to the market over the last three months.

The bulk of prospective buyers are currently seeking property at the cheaper end of the market – with 77% of all enquiries received focusing on listings priced below the €300,000 mark.

Geographically, Puerto del Carmen remains the most sought after location for British and Irish based overseas buyers – accounting for 41% of all enquires received. Followed by Playa Blanca with 31.05%. Whilst Lanzarote´s third resort – Costa Teguise – trailed way behind – generating interest amongst just 11.6% of all prospective purchasers.

Contact Information

Nick Ball

Editor

Lanzarote Guidebook

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