by Nick Ball

Demand for property for sale in Lanzarote priced above the €300,000 mark has fallen flat.  According to figures recently released by one of the islands largest property portals, Lanzarote Guidebook.

An analysis of 636 property enquiries received during the first two months of this year revealed that overseas investors currently have little interest in villas and houses.  And are instead opting for apartments and studios.  Suggesting that recent changes in market conditions and consumer confidence are stifling demand for the more expensive properties currently on the market.  Whilst investors instead turn to lower risk and lower cost options.

According to Lanzarote Guidebooks figures 83% of all enquiries received in January and February 2008 were for properties priced €300,000 or below.   Whilst properties priced below €150,000 attracted 43% of all enquiries.

And demand falls as price rises – with properties priced in the €300,000 to €500,000 bracket accounting for 10% of all enquires.  Whilst properties priced above the €500,000 mark proved to be of interest to just 3% of all overseas investors.

The number of British and Irish residents planning to relocate to Lanzarote has jumped by 35% in the second quarter of 2008.  That’s according to figures released by leading Lanzarote property portal, Lanzarote Guidebook, suggesting that the darkening economic situation in the UK and Ireland looks likely to lead to a growth in the number of people seeking a brighter future abroad.

An analysis of the enquiries for property for sale in Lanzarote received between April and June this year reveals that long term rental enquiries have jumped dramatically compared to the first quarter of 2008, now accounting for almost 44% of all enquiries.

Most of those looking to escape rising household bills and falling disposable incomes are seeking apartments to rent on a long term basis in the island’s main resort of Puerto del Carmen, which apart from being the epicentre of both the British and Irish expat communities on the island is the main hub for employment opportunities for most new arrivals.

With a cooling housing market and rising rents in the UK, rental accommodation in the resort and across the island in general is certainly a more cost effective alternative – with one bedroom apartments starting from around the €500 per month mark (currently around £400).

Lanzarote also offers much cheaper food, fuel and utility costs.  As you might imagine, heating bills are non-existent!

There has been a 35% fall in mortgage approvals across the province of Las Palmas, leading to a fall in demand for property for sale and lower prices, as local banks tighten their lending criteria.

The bulk of prospective buyers are currently seeking property at the cheaper end of the market – with 77% of all enquiries received focusing on listings priced below the €300,000 mark.

Geographically, Puerto del Carmen remains the most sought after location for British and Irish based overseas buyers – accounting for 41% of all enquires received.

Demand for property for sale in Lanzarote priced above the €300,000 mark has fallen flat. According to figures recently released by one of the islands largest property portals, Lanzarote Guidebook.

An analysis of 636 property enquiries received during the first two months of this year revealed that overseas investors currently have little interest in villas and houses. And are instead opting for apartments and studios. Suggesting that recent changes in market conditions and consumer confidence are stifling demand for the more expensive properties currently on the market. Whilst investors instead turn to lower risk and lower cost options.

According to Lanzarote Guidebooks figures 83% of all enquiries received in January and February 2008 were for properties priced €300,000 or below. Whilst properties priced below €150,000 attracted 43% of all enquiries.

And demand falls as price rises – with properties priced in the €300,000 to €500,000 bracket accounting for 10% of all enquires. Whilst properties priced above the €500,000 mark proved to be of interest to just 3% of all overseas investors.