As estate agents we are very often asked “How is the property market in Tenerife?” or even worse “When is the market going to get back to normal?”
When asked “How is the market in Tenerife?” the normal response is “it depends if you’re looking to sell, buy, rent or invest”. The market is full of distressed sales and bank repossessions at the moment, so if you are an investor, the answer to “How is the market?” has to be “Great…fill your boots…in fact let me show you a couple of cheap distressed property sales I have here in Tenerife”.
If you’re a buyer, again, the market is great, admittedly the banks in Spain aren’t lending as much or as easily as they used to, but where in the world are they? Never-the-less banks are lending if they feel you are a good risk and you have some capital to put down…so “How’s the market in Tenerife?”…for a buyer “It’s great…come and let me show you some cheap properties”
Now, if you’re letting your property out, the market may not necessarily seem as good as I have mentioned previously, there appears to be a glut of “Se Alquila” signs on buildings everywhere you look. If you don’t have a mortgage on the property you’re planning on letting or equally, don’t have massive costs that you need to meet every month and are willing to negotiate a little on your monthly rental charge, I think you’ll find plenty of people willing to rent your property. So, “How’s the rental market in Tenerife?”…for rentals…not as good as it could be, but if you’re pro-active in trying to find a tenant, you shouldn’t have a problem.
If you’re a seller? The market here in Tenerife has taken a tumble, that has to be said but there aren’t that many places in Europe that haven’t. Having said that, as Tenerife is a reasonably small island, there is only so much land that can be built on, as opposed to mainland Spain where there seemed to be an endless supply of land to build on. This has helped the market in Tenerife to an extent; in keeping prices buoyant…well, more buoyant than in mainland Spain let’s say. So if you’re selling property here in Tenerife, asking prices could be expected to be a little better than elsewhere, but you’ll be up against the people who over-extended themselves when money was easy to obtain…they need to sell their properties quickly and as such their prices are very competitive or their properties are being repossessed and the banks are selling them off cheap.
Again, there are not as many distressed sales here in Tenerife as in other areas of Spain and Europe, but this will certainly be one of your main areas of competition regarding price. If you consider your price carefully, maybe taking advice from a competent estate agent and look around to see if there are any other properties in your area of a similar style and size and you could find out what their asking prices are you will be able to set your asking price accordingly.
Unfortunately, here in Tenerife, some sellers just decide on a price which is totally irrelevant to anything on the market at that time…in fact…a number of people are still living in the 90’s or early 2,000’s where prices are concerned, this is when sales prices were at an all time high, so spend some time considering your property value, and you should be in a better position for a sensible offer.
So the final question is “How’s the property market in Tenerife?”…for a seller, again, it’s good, as long as you set your selling price accordingly and the seller who is going on to buy another property must realise that the property you will be buying should also have been reduced in price, so in the end, your nett price to change properties could be much the same as it has always been.
Regarding the question “When will the market get back to normal?”…the answer to that one has to be…”When was the property market ever normal…???”
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