The following article is taken from Eye on Spain, www.eyeonspain.com

Rising Visitor Numbers Drive Demand For Lanzarote Property

LanzaroteThe market for property for sale in Lanzarote has received a timely boost.  With the announcement of official figures that British visitor numbers to the island have risen by 16.7% in the first two months of this year.

According to the figures, which have been recently released by Spanish airport operators AENA, overall foreign visitor numbers to Lanzarote have jumped by 10.9% during January and February 2008.  With the British market leading the way – up 16.7% on the same two months in 2007.

Traditionally, British tourism has been the bedrock of both the tourist industry and overseas property investment market on the island.  Last year alone over 850,000 British tourists visited the island.  A figure further augmented by 250,000 plus tourists from Eire.  Who now visit Lanzarote in greater numbers than any other destination in Spain – and have become established as the third largest travel market for the island after the UK and Germany.

Lanzarote also appears to be enjoying a resurgence of popularity in the Scandinavian market.  Which used to be a big source of visitors back in the 1980´s when tourism really took off on the easternmost Canary Island.
With visitor numbers from Norway and Sweden up 31.1% and 61.7% respectively.

However, German tourist numbers continued their downward trend.  Despite ongoing efforts by island tourism authorities to revitalise Lanzarote´s second largest market.  With visitor numbers down 3.8% versus January and February 2008. 

The figures make happy reading for owners of holiday villas and apartments in Lanzarote.  As they have been one of the main beneficiaries of the recent influx of trade.  With ASOLAN, the islands hoteliers association, calculating that occupancy levels in self catering aparrmtners on the island hit 84.19% over this period.  An outstanding performance given the fact that - New Year aside - this is usually one of the quietest periods in the holiday rental calendar.

Island based estate agents have also seen property enquiries rise over this same period.  With the islands largest property portal – Lanzarote Guidebook – registering over 1000 enquiries for property on the island during the first quarter of 2008.

The vast majority of these enquiries have been made on properties at the cheaper end of the spectrum.  With studios and apartments enjoying the main focus of attention – particularly those priced below €150,000.

Suggesting that despite the credit crunch and weaker pound many UK and Irish investors still see plenty of opportunity in investing in property on the island.  Not least as tourism on Lanzarote remains buoyant – creating a ready made market for owners of holiday properties. 

Returns on holiday rental properties are the main factor here.  As unlike other hot spots Lanzarote offers a twelve month rental calendar due to its year round clement climate.  And with average weekly rents starting at £250 per week plus on a one bed apartment and £600 plus on a small, standard villa most investors find they are able to generate significant profits after covering the mortgage payments and other outgoings.

 

 


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