In earlier times, where the property sector across the globe was struggling through what seemed to be doom-and-gloom that was never-ending, when it comes to Tenerife, it now seems like the sun is breaking through the clouds.
Many residents on this island went through hardships in the initial years associated with the economic-crash, when this crisis effected markets in Europe and the UK. As many jobs were lost and people stared to tighten their belts, the people who lived in these effected countries were forced to give up on their vacations. With a significant decrease in the tourist numbers to Tenerife in the last 5 years along with the respective “spend per head” that decreased more and more, many people that moved to the island and built their businesses that were reliant on tourist trades were faced with extremely tough decisions.
Just about all of the expat residents that still reside in Tenerife, know of one or more people that were forced to leave this island caused by the global financial situations. This resulted in many work colleagues, family members and friends making the decision to return to Ireland or the UK due to the ever-increasing crisis.
The Tenerife Property Bubble
Before the worldwide economic crash, the property market in Tenerife was once in the ever-inflating bubble. This caused many properties which were once reasonably priced and affordable to become over-valued. Some of these properties experienced a ten-fold sometimes even larger increase in only a few short years. The prices of small townhouses and modest apartments became unrealistic and the luxury properties were regarded as off-the-charts.
However, when the bubble burst, it went out with a loud bang. A few of the mortgage holders that now found themselves stuck with mortgages that were worth over 3 times what the properties were worth made the decision to default.
The silver-lining associated with this situation, according to prominent estate agents in Tenerife, is that today the prices have started to flatten out. This means that property owners are now offered a realistic understanding about what these properties are really worth. The days of the over-inflated prices in the market have come to an end. This in turn has opened the door for the new generation of property buyers that have a goal of a life in the sun.
The Current Tenerife Property Market
If you can think about getting stuck in the UK on rainy, cold and grey mornings trying to get the kids to school on time, only to struggle your way through the congested traffic in order to get to work, you'll understand why the thought of investing in property in Tenerife that offers glorious sunshine and a year-round mild climate, is one of the popular daydreams for a lot of Brits.
The climate gives Tenerife an unfair advantage over a number of other destinations, whether it is for a holiday destination or a place to move, or to start a business and raise your kids.
This popular destination is only 4 hours away with travel, making this island the ideal “exotic” location yet still close enough that it makes travel inexpensive and easy to achieve. Tenerife is a holiday destination which has managed to remain “do-able” for a lot of people, even in the worst part of the crisis. In addition, Tenerife is in the position to bounce-back well as soon as the dark clouds associated with the economy lift fully.
Those interested in investing in Tenerife property might be looking for a lifestyle in the sunshine to raise a family or to buy an apartment for the purposes of an investment property.
These investment properties offer opportunities for the investor to rent the property out to holiday makers. This has been one of the long-term tactics for most investors in Tenerife.
To help you even more, here's a list of the best estate agents in Tenerife as voted for by the public.
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