Property Market Strong in Tenerife

Tenerife is acting like a property ‘micro-market’ within the Spanish economy. Despite Spain’s recent property crisis, Tenerife’s property sales are still rising and Tenerife is well placed to cater for the large number of people from the UK hoping to buy somewhere in the sun.

In 2001 the Tenerife government voted to limit the supply of new homes thus preventing over building.

Currently, property in Tenerife continues to rise in value, while mainland prices stagnate and could possibly fall in the coming months.

The foreign buyer market remains strong in Tenerife - 42,000 homes are owned by Britons and good rental incomes can be achieved.

The incentive of all year round sunshine and increasing tourist numbers, 6 million in 2006, has led to a demand for low cost flight operators to obtain new routes.

Tenerife’s resident population is one of the fastest growing in Europe. New mortgage lenders and applications are increasing and rents are high, encouraging locals to buy as soon as they can, ensuring local demand remains strong.