As the holidays have ended and the New Year starts afresh there will be questions about what will happen with the property market in Tenerife in 2014. Nobody has a crystal ball – least of all me, but we can take a few critical indicators that might give us some clues about what is possibly going to happen in the coming year.
The International Crisis
Generally speaking most countries seems to be coming out of recession and posting positive figures and comments about the state of their financial situations. Some countries, like Spain for example, are technically coming out of recession, showing a growth in the July to September quarter of 0.1% – technically because of the figures being released by the Central Bank – no matter how slowly there is still movement from most countries.
Although not a direct indicator of the property market here, both the UK and US housing markets have set the stage for a property recovery and with banks starting to lend money…in those countries at least…the outlook is bright.
The Crisis in Tenerife
There is still massive unemployment and poverty here in Tenerife, with figures of over 30% still being reported and although September’s unemployment figures were a marginal improvement on figures announced in July, it still feels tough here for those without work and an income. The Spanish government seems to be quite harsh when it comes to handing out money to unemployed people and for those with families, it must be even harder here, especially through the Christmas and New Year.
Tenerife on the ground
Living in Tenerife, my own feelings are that, in spite of the figures above, things are definitely on the up and for 2014 it will be getting better. For example, I have noticed in areas of Los Cristianos that I haven’t been to for a while, shops that were once empty are now being rented and have new businesses in them and it’s not just gung-ho entrepreneurs either, there are also high street names taking up residence in these once empty premises.
also high street names are taking up residence in these once empty premises.
I have also noticed an increase of dirt moving trucks, both full and empty, on the roads. This can only mean one thing – building work has started again. The general feel of the Island, in my opinion, is on the up. Don’t get me wrong, we’re certainly not getting back to the heady times of the 90’s…and I doubt we will for a very long time yet – if ever, but I just think that there is a general feeling of positiveness amongst the people.
So, where does this leave the property market in Tenerife in 2014?
I think that the property market in Tenerife has now reached the bottom price wise. Due to the type of market we have here, there will always be owners that are very motivated to sell, so there will still be deals to be had, but fewer of those vendors will be motivated due to lack of money and ability to pay a mortgage, it’ll be the usual divorce, health or missing family criteria.
Sterling is now getting stronger against the Euro, so this will bring back the UK buyers as they see the value in buying a property in the Eurozone and European buyers will continue to buy in 2014 as will the Eastern Europeans following on the tails of their fellow country people.
Sterling is now stronger against the Euro…
As 2014 progresses and buyers realise that prices are not what they were, the general feeling of fear that a good deal will be missed will start to infiltrate the thinking of the property buyer and as we head towards 2015 prices might well start to stabalise and even increase in the following years.
So in summary, I think that the property market in Tenerife in 2014 will be stable prices for the majority of the year with a bit of a buzz towards the end of 2014 and leading into 2015. From there, who knows…?…now where’s my crystal ball…???