Overseas Property News

Canary Islands

Canary Islands Property Growing in Popularity

In a recent study by Global Edge, using keyword analysis tool word-tracker, to analyse the most popular searches for overseas property by country, the Canary Islands proved one of the biggest shockers, with Tenerife making it into the top-ten, Fuerteventura not far behind, and even the localities of Costa Teguise (Lanzarote), Palm Mar (Tenerife), and Caleta de Fuste (Fuerteventura) all making it into the top 70.

This is a major insight into the Canary Islands growing popularity as a property investment destination. DSR, ever-a-finger on the pulse of overseas property investment trends have just added a new Tenerife property: the Parque don José, a fully equipped resort development, in an area perfect for holiday makers, near Las Galletas in Costa del Silencio.

Liam Bailey, head of international research for DSR, had this to say on the property's growth potential:

"As an investment, Parque don José has bucket loads of potential, especially for holiday home investors, i.e. who intend to make money from its rental when hot holidaying in it themselves. Though never scorching, the Canary Islands is warm all year round, and Tenerife tourism is on the rise again as Spain gets too hot, sticky and crowded, so occupancy on Tenerife property will be between 80 and 100%, allowing investors to make rental yields of between 8 and 10% depending on how much the use it themselves.

"Capital appreciation on these apartments is likely to be around 10%-15% per year. Tenerife property prices are slightly higher than some of the new emerging markets, but you are paying extra for the safety of buying an existing property that you can use/rent-out straight away, and in a secure, established market, which also has a well developed infrastructure already geared up for tourism, making it the property easy to market for holiday rentals.

Planning permission was recently passed for a new five star hotel, an artificial beach and a spa, indicating that Costa del Silencio is a new growth area. The Parque don José resort itself has just received an EU grant, to be used for making massive upgrades to the resort, which will push up prices. Now is the time to buy.

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