Buying Holiday Rental Property In Lanzarote
Posted on 13. Jun, 2009 in Advice
Spain has long reigned as the most popular holiday destination in the world for British tourists. And despite the current economic climate and the weakness of sterling against the euro it will still be the number one foreign holiday choice in 2009. Making it an obvious location for anyone planning to invest in a holiday rental property abroad.
Whilst the mainland offers steady returns the Canary Islands boast year round sunshine. Creating a twelve month rental calendar that simply cannot be matched anywhere else in Europe. And whilst these seven islands are located off the coast of West Africa, many hundreds of miles south of the Iberian Peninsula, they still offer tourists all of the customs, culture and reassuring familiarity of a holiday in Spain.
Lanzarote is the most easterly of the islands and tourism first took off here back in the 1970´s. Expanding rapidly to an average of around 1.6 million foreign visitors annually. The bulk of them from the UK and Eire. So creating a very reliable market for English speaking owners of holiday rental properties on the island.
Importantly, Lanzarote is also serviced by some of the UK and Irelands leading low cost flight operators. Such as easyJet, Monarch and Ryanair. With return flights starting from as low as £150. So ensuring a steady stream of independent travellers who like to create their own holidays and who are on the look out for private rental accommodation. Which comprises around 40% of all tourist beds on the island.
Rental returns are solid too. With a standard two bedroom villa with pool commanding around £550 per week. But rising much higher than this during peak periods such as Easter and Christmas. Which are usually booked solid.
Where should investors be looking? The southern resort of Playa Blanca has expanded rapidly over the last ten years and is now established as the second most popular holiday destination on the island. Thanks to the fact that luxury villas were developed at the core of the blueprint. Currently, standard villa rental properties are available from around the €250,000 mark.
Those with a smaller investment budget should turn their attentions towards the islands oldest and most popular resort of Puerto del Carmen. Where apartment complexes rule the roost. With prices dropping sharply over the last year it is now possible to pick up a basic studio on a holiday complex from as little as €65,000. A price level unseen on the island for well over seven years.
Marketing your Lanzarote rental property is of course key. There are now a number of websites dedicated to the UK and Irish self catering holiday market – such as Lanzarote Guidebook. Which holds excellent rankings for search phrases such as holiday villas in Lanzarote. With listings costing €12 per month.
