What You Need to Know about the Lanzarote Property Market

28. November 2019

When it comes to moving home, it's essential that you know everything there is to know about the property, the area and the process. To help you, we have pulled together this guide that currently outlines the current Lanzarote property market.

Do you dream of a life soaking up the sun on the spectacular island of Lanzarote? Although life here promises to be relaxed and enjoyable, it’s important that you know everything there is to know about real estate here before you pack up your belongings and make the move. Once you’ve holidayed here, it’s easy to fall in love - which is why many people end up investing in a holiday home or a permanent residence. The year-round climate, lifestyle, activities and amenities attract people from all over the world. If you’ve made the decision to relocate, here’s what you need to know about the Lanzarote property market. Once you know the basics, the fun can begin and you can start your search for your dream home!

The Rise and Fall of Property Prices in Lanzarote

Just like many other countries within Europe, the Lanzarote property market has been slightly unpredictable over recent years. In general, it has been fairly lacklustre, largely down to the dreaded B word (Brexit). This is something that is very much on homeowners’ minds at present, which has only been prolonged because of the several push backs that have occurred. Because of this, it has meant that the real estate market has been relatively uncertain throughout this part of the world.

Lanzarote property market experts predicted that things would get worse before they get better. At the start of 2019, the UK believed to be leaving the EU within a matter a months. However, as the year draws to a close, no deal has been agreed and things are just as unpredictable as they were 12 months ago.

There was a market boom in the run up to 2008 before it suddenly crashed. From 1996 to 2007, properties throughout Spain and the Canaries saw prices rise by around 190% Following the credit crunch more than a decade ago, property prices in Lanzarote took a hit with the local economy also taking a battering. It wasn’t until 2016 when the Lanzarote property market started to see good and steady improvements.

Since then, demand for properties in Lanzarote has continued to rise. It is predicted that this growth will continue until 2021 before levelling off. However, because of Brexit, no one really knows what to expect.

Knowing Where is Best to Invest

When moving to Lanzarote, one of the first things you must consider is where to live. There are many popular and highly sought-after locations dotted all over the island, so you really are left spoilt for choice when investing in real estate here. Some of the best places to buy a home in Lanzarote are Puerto del Carmen, Playa Blanca, Puerto Calero and Costa Teguise. Each area boasts its own unique charm and character and has something to offer people of all ages.

Puerto del Carmen

Dating back to as early as 1963, Puerto del Carmen was predominately a place for tourists and holidaymakers. Though it still is one of the most popular places to come for a break away, it’s also become a great place to call home. It’s chosen by people from all over the world because of its beaches, weather and close proximity to the airport. What’s more, because tourists flock here year-round, the local economy continues to flourish. Thanks to this, property sales in Puerto del Carmen have seen healthy growth.

Playa Blanca

Nestled way down on the island’s southern tip is Playa Blanca, Lanzarote’s second largest resort. Despite it being an old fishing village, lots of luxury properties can be found in this region, including a range of large apartments and sophisticated villas. The residential properties tend to be well laid out and spacious, which is what makes them so popular.

Puerto Calero

Though it may be just a few kilometres away from Puerto del Carmen, Puerto Calero offers up a totally different vibe. It’s less popular with tourists, which makes it a great residential area. There’s a mix of high-end, luxury villas and small apartments that have a traditional Spanish feel to them. This quiet and tranquil resort is located on the southwest coast and blessed with one of the nicest marinas on the island.

Costa Teguise

One main reasons why so many people look for real estate in Lanzarote is to spend their days relaxing on the beach while having the sun shine down on them. If that’s what you’re looking for, then Costa Teguise really is a great place to do this. Several of the island’s best beaches are found in this area, which helps to boost the property market here. Again it’s an area that people love to holiday at, so be sure to expect sea front bars and restaurants, busy streets and plenty of things to do in the area.

Population & Tourist Numbers

Like many destinations, the property market in Lanzarote can sometimes be affected by tourists. There is currently a population of just under 150,000 yet the island receives over a million tourists every year. Thanks to this, many of the bars, restaurants, cafes, shops, boutiques and other establishments are able to thrive. Studies show that Lanzarote’s population continues to grow year and year as does the number of holidaymakers, despite a 2.6% back in 2018.

Around 45% of tourists are from the UK, while another 13.75% are from Germany, 9.5% are from Ireland and 8.9% are from mainland Spain. When it comes to the expats living on the island, again the Brits lead the way. As it is a culturally diverse place to live, other nationalities include Morrocans, Italians, Germans and Colombians.

Get Help Buying Your Lanzarote Home

When you’re getting ready to make the move, finding a property can be both exciting and daunting. It’s recommended that you enlist the help of local and professional real estate experts who are dedicated to helping you find your dream home: just like Lanzarote Investments. We have 100s of properties for sale on the island and are more than happy to help you every step of the way. If you have any questions about the Lanzarote property market or want to find out more about our choice of available homes, please do not hesitate to get in contact.

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