Singing the praises of


a Canary Island

There are still property bargains to be found in Lanzarote – an island with year round rental potential – says Nick Ball, editor of the Lanzarote Guide Book.

Lanzarote has long been a favourite with overseas property investors.

The small Canary Island, a speck of Spain located just 70 miles off the coast of Africa enjoys a year round clement climate with temperatures rarely falling below 20C – even in the depths of winter.

This means owners of holiday rental properties are able to enjoy a full 12 month rental calendar – providing year round returns.

The UK, four hours flying time away, is Lanzarote´s most important market – with just over 850,000 British tourists visiting the island during 2007. But the island also attracts a cosmopolitan client mix – and is also very popular with German, Scandinavian and Dutch tourists, and of course, Spanish – many of whom head for Lanzarote to escape the overbearing heat on the mainland during the high summer months.

In recent years Lanzarote has also figured heavily in the travel plans of many Irish tourists. Attracting over 280,000 visitors from the Republic in 2007 – so establishing the island as the number one choice in Spain for visitors from Eire.

Whilst the island boasts over 90 beautiful beaches – mostly golden grains rather than the black sand found on many other Canary Islands –it has much more to offer than just bucket and spade tourism.

Lanzarote’s natural beauty spots include the raw, eerie landscapes of the Timanfaya Volcano park in the south – scene of the worlds longest ever volcanic eruption from 1730 to 1736 – and the lush palm-packed valleys in the north, such as the Valley of 1000 Palms.

There is also a decent sprinkling of unique man-made attractions – thanks to the work of the locally born artist and architect Cesar Manrique. He oversaw the controlled development of tourism and created some truly unique attractions – such as the Jameos del Agua, an incredible underground grotto – and the Mirador del Rio - a stylish look out point providing breathtaking views across to the neighbouring island of La Graciosa.

Property prices on the island are still below those of comparable destinations in southern Spain and even those of the larger Canary Islands. Some experts say there is still plenty of scope for capital appreciation.

A basic one bedroom apartment in one of the three main resorts starts from around €80,000, whilst villas – with private pools – are available from around €260,000 upwards.

Whilst the credit crunch and falling economic confidence has obviously had some impact on the island’s property market, there is still plenty of demand at the lower end. This is being driven by rising tourist numbers – visitors from the UK visitors up 8.7 per cent in the first three months of this year, for example.

Whilst many observers believe there will be some sort of shakeout in the next year or two there are still around 180 estate agents here – many of them British owned - all vying for the business of holiday makers and overseas investors.

Lanzarote´s oldest resort of Puerto del Carmen remains the safest bet for holiday apartment investments. As this is still the most popular tourist destination. And it is about to undergo a comprehensive revitalisation under the aegis of the island government which is pedestrianising the main sea front promenade and imposing new fascias on the current glut of neon lit bars and restaurants. A new golf course – only the second on Lanzarote – opens this summer.

Playa Blanca, in the south of the island, offers the best micro-climate as well as the best value for money for anyone seeking a holiday villa. This resort was evolved with around luxury villas and hotels rather than apartment complexes. And as a result there is a wide selection of competitively priced and purpose-built properties available – most offering fantastic views, heated pools and all mod cons – priced from around €280,000.

Bolder buyers are also looking inland – as Lanzarote is starting to take off as a rural holiday destination too. This is where investors can find traditional, historic, character properties – with features such as thick stone walls, internal courtyards and Canarain balconies. Some of the best locations include Macher and La Asomada – both of which are still only ten minutes drive to Puerto del Carmen and Teguise – the island’s capital until 1852.

Renovators will also be pleased to know that Ikea recently opened on Lanzarote – which according to some is a key indicator of an upcoming rental hotspot!

Nick Ball is editor of the Lanzarote Guidebook (www.lanzaroteguidebook.com) and is based in Lanzarote from where he provides information about the Island for visitors and residents. He can be reached by email at nick@lanzaroteguidebook.com.

Images courtesy of mhuntleyphotography.co.uk.