Bam…!!!…as one of my colleagues in my office regularly exclaims, no I’m not going to be naming names, but on this occasion I’m almost inclined to say it myself.
Oh go-on then…Bam…!!!
Yup, 6 months of 2015 have already passed us by; in fact by the time you read this it’ll be 7 months, so what’s happened to the Tenerife property market during the first 6 months of 2015? Let’s have a look.Click to tweet
Positive changes on the horizon
Back in May it was reported that José Luis Malo de Molina, the head of research at the Bank of Spain said that, in his opinion the Spanish property market was “showing signs of a slight recovery” and he added that “we could say that the price adjustment has in theory come to an end” and further backed up his statement by the fact by pointing out that foreign buyers were the first to start pulling out of the market in 2008 and 2009 as the crisis could be seen to be coming and now, with more foreign buyers than ever scooping up Spanish property, this could be seen as a sign of the long expected recovery of the Spanish property market.
On the home front, residents and Spanish nationals have been buying more homes and also more homes with the assistance of mortgages. Improvements in employment figures and the slight relaxing of mortgage criteria have benefitted the average home buyer here in Spain. Property prices are now at an all-time low and in the opinion of La Caixa, one of Spain’s largest banks; prices cannot fall any further and have been on record to say “the price adjustment has practically come to an end”
If the foreigners are buying – who are buying the most?
Notably foreign visitors to Spain declined during the crisis years and so did sales but now as foreigners are able to afford holidays again, travelers from the UK are leading the list of foreign visitors with 26.4% of the recorded visitors so far this year with German holiday makers next at 16.5% and the French are chasing behind with 12.8% of the total number of visitors to Spanish shores. So, Brits, Germans and French made up over half the total visitors to Spain for the first 6 months of the year. This trend will more than likely reflect the nationality of buyers of property here in Spain, so Brits leading the way again as they were after the first quarter of this year.
What are they buying?
La Caixa, has said that it sees a general recovery of the housing market but stresses that although we have seen a general increase in property sales, new housing sales will still falter due to the new property glut that still exists from start of the crisis and that these properties will have to be cleared from the market before any improvement in the new housing building sector can be seen.
Back to Tenerife…
Tenerife is certainly on the up…The Financial Times have just released an article in which it describes Tenerife as changing its image to be the latest high-end golfing and foodie destinationClick to tweet
A total of 9 golf courses here on the island accompanied by all year round sun makes it a golfer’s dream, 3 Michelin-starred restaurants, a host of fabulous Spanish restaurants & Guachinches, a number of good international restaurants and with construction of 2 new hotels in the coastal area of La Caleta – an area which has over recent years made itself one of the higher class resorts in the south and Hard Rock investing millions in an hotel in Playa Paraíso, the island is certainly back on track for recovery.
It’s not only new hotels being built but the recently opened Siam Mall and Parque Santiago 6 shopping centres and a number of luxury complexes that have been given permission to be built as well and among them is the new Corales Suites, again in La Caleta, boasting 3 bedroom apartments of 190m2 with a price tag of €1.2 million, one third of which have already been sold off plan and will be ready for occupation in 2017.
Tenerife is definitely on the rebound and destined for much higher things in the future…we’ve waited long enough…