Villas in Lanzarote - Is Now the Right Time to Buy?

Despite the 20% devaluation of Sterling against theIn terms of the property market on Lanzarote, the
Euro over the past year, Lanzarote, along withincreasing popularity of villa and apartment holidays
Tenerife and mainland Spain, seems as popular asled to a sharp increase in the prices of property in
ever with holidaymakers. More than 2 million BritsLanzarote in the years running up to 2005, as people
took to the air this Easter weekend in search ofsaw the value and returns that they could achieve
warmer climates, according to ABTA, with membersfrom buy to let holiday villas, whilst having access to
reporting an upsurge in bookings over the pasteasy mortgage credit. This also fuelled a big
month, both for Easter and the summer holidayexpansion in the building of villas, especially in and
season.around Playa Blanca and Costa Teguise.
Figures just released suggest that holiday bookingsWith the credit crunch, however, mortgage funds are
this month from the UK will be 20% up on April 2008now less available, bank repossessions have
- not bad for a country that is apparently in the gripincreased, and property prices have fallen back - in
of the worst recession since the 1930s.some cases, quite sharply. As a result, there are now
Villas in Lanzarote have been the accommodation ofsome very good property bargains to be had,
choice for many holidaying on the island for manycompared with a year or two ago. This element,
years now. Holidaymakers from the UK and Irelandcombined with the fact that the holiday rentals
seem to value the freedom of self catering in amarket has remained strong, should improve the
stylish villa with its own pool, and this has been arental and investment yields of holiday villas.
driving factor behind the growth of the holiday villaFor those with the cash to invest in villas on
industry on Lanzarote.Lanzarote, these yields could prove highly attractive
Oddly enough, the onset of the recession might evencompared to the negligible returns on cash deposits,
have worked in favour of villa holidays, as familiesbonds and other alternative forms of investment
can choose to cook themselves and save money,that are currently available.
rather than paying out for restaurant and hotel meals.