| Despite the 20% devaluation of Sterling against the | | | | In terms of the property market on Lanzarote, the |
| Euro over the past year, Lanzarote, along with | | | | increasing popularity of villa and apartment holidays |
| Tenerife and mainland Spain, seems as popular as | | | | led to a sharp increase in the prices of property in |
| ever with holidaymakers. More than 2 million Brits | | | | Lanzarote in the years running up to 2005, as people |
| took to the air this Easter weekend in search of | | | | saw the value and returns that they could achieve |
| warmer climates, according to ABTA, with members | | | | from buy to let holiday villas, whilst having access to |
| reporting an upsurge in bookings over the past | | | | easy mortgage credit. This also fuelled a big |
| month, both for Easter and the summer holiday | | | | expansion in the building of villas, especially in and |
| season. | | | | around Playa Blanca and Costa Teguise. |
| Figures just released suggest that holiday bookings | | | | With the credit crunch, however, mortgage funds are |
| this month from the UK will be 20% up on April 2008 | | | | now less available, bank repossessions have |
| - not bad for a country that is apparently in the grip | | | | increased, 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 of | | | | some very good property bargains to be had, |
| choice for many holidaying on the island for many | | | | compared with a year or two ago. This element, |
| years now. Holidaymakers from the UK and Ireland | | | | combined with the fact that the holiday rentals |
| seem to value the freedom of self catering in a | | | | market has remained strong, should improve the |
| stylish villa with its own pool, and this has been a | | | | rental and investment yields of holiday villas. |
| driving factor behind the growth of the holiday villa | | | | For 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 even | | | | compared to the negligible returns on cash deposits, |
| have worked in favour of villa holidays, as families | | | | bonds 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. | | | | |