Demand amongst overseas investors for residential and commercial property in Puerto del Carmen is currently driving the Lanzarote real estate market. According to an analysis of 636 property for sale enquiries received by Lanzarote´s busiest property portal, Lanzarote Guidebook, during the first two months of 2008.
Where are the current property hotspots for overseas investors on Lanzarote?
According to this detailed analysis of British and Irish property investment requirements, Lanzarote´s oldest resort Puerto del Carmen is currently top dog, accounting for 43% of all property enquiries received during January and February 2008. With Costa Teguise recording 30% and Playa Blanca trailing in third place with 19%.
However, Playa Blanca remains the most popular spot on the island for anyone searching for a villa investment generating five times more demand than closest resort rival Costa Teguise. Reflecting the fact that Lanzarote´s newest resort boasts better value villa properties than any other location
on the island.
Costa Teguise just pips Puerto del Carmen for apartment enquiries. Whilst Puerto del Carmen leads the way for commercial property accounting for 64% of all demand, reflecting the resorts position as the epicentre for expat enterprise on the island.
Ideal Homes in Lanzarote
What types of property in Lanzarote are currently in demand with overseas investors?
Typically, apartments lead the field attracting over 3 times as much interest as villas, suggesting that recent changes in market conditions and consumer confidence are stifling demand for the more expensive properties currently on the market. Whilst investors instead turn to lower risk and lower cost options.
One-bedroom apartments were the most sought after type of property, accounting for 44% of all enquiries, followed by two bedroom apartments (35%) and studios (13%).
Property Prices in Lanzarote
How much money are overseas investors planning to spend?
The conclusion that caution currently dominates the market is supported by the fact that 83% of all enquiries were for properties priced €300,000 or below. With properties priced below €150,000 attracting 43% of all enquiries.
Demand falls as price rises with properties priced in the €300,000 to €500,000 bracket accounting for 10% of all enquires. Properties priced above the €500,000 mark were of interest to just 3% of all overseas investors.