Investors eye ‘tantalizing tenerife’
Investors are increasingly being attracted to the
Liam Bailey, head of international research for David Stanley Redfern Ltd, explained: “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 rentalsâ€.
â€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 buyâ€.