Monthly Archives: November 2008

Property Investment in Tenerife - Costa del Silencio

November 28, 2008 – 1:19 pm

On being asked by a potential property buyer for our opinion on Costa del Silencio as a location in which to invest, I had to answer quite positively. Thanks to the Ten Bel organisation (which was the first large tourist holiday complex in the region), Costa Del Silencio has been popular with holidaymakers for around 30 years.

Lovely pool on Parque Albatros, Costa del Silencio

Lovely pool on Parque Albatros, Costa del Silencio

The town is currently seeing a revival - thanks to a multi-million euro injection to modernise and upgrade its infrastructure. As the new roadways, paths and street lighting near completion it is clear that this once beautiful town is well on the way to being restored to its former glory.

Rumour has it also that plans are afoot for a new hotel and exciting water park (and, of course, a golf course has been talked about for some time too). Whatever new amenities are ultimately completed, there is an optimistic aura about the town now and I would say that property in Costa del Silencio is an excellent medium term investment.

An example of a great bargain is this lovely 4 bedroom semi-detached villa, priced to sell and virtually guaranteed to appreciate in value over the next few years.

By admin | Posted in Property, Tenerife | Tagged , , , , | Comments (1)

Tenerife in European promotional campaign to boost visitor levels

November 26, 2008 – 7:31 pm

The Canary Islands Government has launched a £1 million Europe-wide promotional campaign to entice more visitors and prove that the islands have more to offer than just sun, sea and sand…

Tenerife is fondly known as 'The Island of Eternal Spring'

The Islands (Tenerife, Gran Canaria, Fuerteventura and Lanzarote in particular) have always been a favourite of British holidaymakers and second home owners. The British Embassy calculates that nearly four million Britons visit the islands each year, and 60,000 are resident.

Much of the Islands’ income comes from tourism, with Brits providing a large part of that.

Now, as the credit crunch hits the UK hard, hoteliers and restaurant owners on the Canary Islands are concerned that the tourist market may flop, as Brits stay closer to home to conserve cash.

Last year, devastating fires hit the peak tourist season hard, destroying sections of Tenerife and Grand Canaria. This, along with the credit crunch, has led the Canary Islands’ Government to launch a new campaign in a bid to entice more tourists and highlight the many attractions on offer in the archipelago.

Called ‘The Three Stadiums Of Happiness,’ the £1.26 million campaign was launched as an exhibition at the Arsenal FC’s home - Emirates Stadium, in London, last week.

The main aim of the campaign is to showcase the Canary Islands as more than just a hot beach destination, by highlighting the tenets of family, wellness, sea and nature.

The Canary Islands are hoping that visitors that hadn’t previously considered the islands will be attracted to the nature, wildlife and spas, as well as the ever popular beaches.

Tenerife's Mt Teide is the highest peak in Europe at 3,717.91 metres (12,198 feet)

The Tourism Vice-Minister of the Canary Islands, Ms Maria del Carmen Harnandez Bento, said, “The Canaries have always been a popular destination with British holidaymakers, especially given our winter sun and fine beaches. However, this new exhibition presents an opportunity for the islands collectively to highlight another side of life in the Canary Islands to holidaymakers and for us to present a range of other activity options too.”

The announcement of the new campaign follows speeches from the Canarian Government at the recent travel industry event - ‘World Travel Market’ - which underlined the importance of British visitors to the Island’s tourism sector.

However, stand-in Regional Vice-President of the Government of the Canary Islands José Manuel Soria, said the Canaries had ‘no need to worry’ about its principal source of holiday revenue, because the UK authorities had taken solid measures to boost the economy.

“British people have a need to travel,” said Mr Soria, who recalled that Britons spend an average of €97 (£82) a day when on holiday in the Canaries.

Tourism Minister Rita Martín said that if British holidaymakers did not exist, ‘we would have to invent them,’ so crucial is their role to the Canaries’ tourist industry!

By Angela | Posted in Economy, Tenerife | Tagged , , , , , , , , , , , , , , , , , | Comments (0)

Weekend soccer action - Tenerife victorious in Local “Derby”

November 25, 2008 – 10:05 am

A round up of the weekend action - 24 November 08

English Premier League

The top two are held at home as Manchester City compound the Gunners’ misery. Manchester City dealt

Aaron Lennon was in great form in resurgent Spurs' win in Sunday's victory over Blackburn

Lennon (left) in great form for resurgent Spurs

another blow to Arsenal’s fading title hopes as Premier League leaders Chelsea and Liverpool endured frustrating home draws. Manchester United failed to capitalise on stumbles by their title rivals after being held to a  0-0 draw at Aston Villa.

Stoke City won the battle of the promoted clubs against West Bromwich Albion, Bolton Wanderers were impressive winners at Middlesbrough and Hull City scrapped for a draw at Portsmouth.

Chelsea’s stuttering home form continued after a stubborn rearguard display from Newcastle United resulted in a 0-0 draw at Stamford Bridge.

Liverpool’s old frailties came back to the surface at Anfield as Fulham battled for a 0-0 draw against the title contenders.

In Sunday’s games, Harry Redknapp’s rejuvenated Tottenham climbed out of the bottom three with a 1-0 home win v Blackburn and London rivals West Ham secured a great away win with the same score at Sunderland.

On Monday night, Wigan beat a below par Everton with a Henry Camara goal to climb out of the bottom three.

In Scotland, Celtic and Rangers continue their annual battle for the honours.

Other European leagues: Barcelona saw their winning streak ended in Spain, but stay top; Inter Milan remain out in front in Italy and Hoffenheim are back on top in Germany.

Spain

Barcelona saw their nine-game winning run in La Liga end with a 1-1 home draw against Getafe with Pep Guardiola’s men forced to come from behind to take a point.

Real Madrid coach Bernd Schuster received the club’s public backing last week and his side responded with an important 1-0 victory over Recreativo Huelva to climb into second in the table, three points behind Barca.

Villarreal, who host Manchester United in the UEFA Champions League on Tuesday, suffered their first home defeat of the season as they were beaten 3-0 at El Madrigal by Valladolid.

In the second Division, the “derby match” between Las Palmas and Tenerife resulted in a win for CD Tenerife. Alejandro Alfaro scoring for the visitors after 31 minutes.

Scotland
Celtic won their 11th successive SPL game to remain four points ahead of Rangers, who again had in-form striker Kris Boyd on the scoresheet.

Gordon Strachan’s men continue to hold a four-point advantage at the top of the table after their 3-1 triumph away to St Mirren.

And Boyd scored his 13th goal of a productive season for Walter Smith’s side to set the seal on their 2-0 home success against Aberdeen.

By Angela | Posted in Premier League football, Sports Desk | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , | Comments (0)

Tenerife’s home owners gain during market downturn?

November 23, 2008 – 12:32 pm

The downturn in perennial hotspot Spain’s fortunes has been given a lot of column inches lately. Still it’s not all doom and gloom - in fact, if you are a second home owner in Tenerife, the current crisis could well be a blessing in disguise…

Spain has topped the list of Europe’s most popular countries to emigrate to more times than I can remember.

The sun, sand and sea has proved a killer combination and tourists and investors have flocked to Spain and its island terrirories in droves, causing property prices to sky rocket.

Then the credit crunch came and prices in Spain started to fall, compounded by a glut of unsold apartments built by overenthusiastic developers eager to cash in when the market was piping hot.

Average house prices have fallen by around 6.5 per cent year on year, it was reported last month and experts have predicted that the decline will continue well into next year with an annual fall of around nine per cent.

So, with prices falling and no sign of an upturn in the near future, buyers are not entering the market, which

Santa Cruz Opera House

Santa Cruz Opera House

opens up a good opportunity for second home owners as more and more people look to rent rather than buy.

With the demand for rental accommodation rising, due to people finding it both harder to secure mortgage financing and reluctant to buy into an unstable market, second home owners who do want to rent out their home should see stronger demand and higher returns than ever.

Some are waiting to see what property prices do and if the Euro/Sterling exchange rate improves, while others are still trying to sell their UK home in order to finance their property purchase in Tenerife.

Cash buyers who are ready to move fast want to be in the location in which they want to buy in case a real bargain does come onto the market. Buyers who don’t require mortgage finance can snap up a bargain as many desperate vendors and developers are reducing prices by as much as a whopping 30 per cent.

Locals are also wary of the current market and are looking towards the rental sector, something which is traditionally dominated by tourists and expats looking to start a new life in the sun.
Prior to the economic crisis that is sweeping the globe, only a tiny minority of Spanish nationals opted to rent on holiday rather than purchase their own homes. But, as often happens in a crisis, things change and more and more Spaniards are now joining the hoards of tourists and expats enquiring about rental properties in Tenerife.

By Angela | Posted in Economy, Property, Tenerife | Tagged , , , , , , , , , , , , , | Comments (2)

Flight boost for Canary Islands

November 22, 2008 – 10:54 am

In news that may interest overseas property buyers thinking of investing in the Canary Islands, it has just been announced that new flights will be heading there from Bristol Airport…

Budget air carrier Teleticket has just announced that it is to run a series of new services to Tenerife, Lanzarote and Gran Canaria, aimed at filling the gap left by the recent collapse of travel firm XL.

Bristol Airport Head of Sales, Jason Wescott, commented, “Teleticket has recognised the opportunity by creating a 2009 programme which meets demand for flights to some of the most popular destinations.”

Such flights could be good news for those investing in the islands for buy-to-let tourism purposes, particularly as the bulk of the flights will take place during the school holidays.

Teleticket revealed last month that in the New Year it will commence services to Tenerife and Gran Canaria from Glasgow and Edinburgh airports.

By Angela | Posted in Economy, Tenerife | Tagged , , , , , , , , , , , , , , | Comments (0)

Some light beginning to shine on Tenerife’s economy?

November 21, 2008 – 1:43 pm

It has been a tough year for Tenerife but there could be a glimmer of light emerging from the economic gloom. As businesses struggle to keep going and jobs become even more precious, the Island’s Employers’ Association (CEOE-Tenerife) admits that 2008 is turning out to be worse than even they expected.

But CEOE-Tenerife believes that if the current crisis is handled the right way, it predicts a “timid” recovery in the second half of 2009. This will be dependent on the Canary Islands Government, the town halls and the city councils all working closely together to solve today’s problems and pave the way for a brighter future.

Even the smallest piece of optimism will be welcomed by Tenerife which, like the rest of the world, is feeling the pinch of the credit squeeze. Tourist numbers are still expected to be up on 2007 when the year comes to a close but recent months have shown a decrease, with less Brits and Germans coming here as other destinations offer better value for money.

CEOE-Tenerife had predicted a bad time for the island in 2008 and its expectations have come true. In fact, the association says 2008 will be the worst year since 1993, with retail sales down, car sales badly hit and the construction industry devastated. The year will therefore close several tenths below the 1.5 per cent the association had forecast.

The Association says a timid recovery could be on the horizon in the second part of next year provided the right series of financial measures are taken and every support given to small and medium-sized businesses.

The situation in Tenerife is very complex because of increased interest rates, the credit crunch, slow growth of the economy and the loss of more than 52,000 jobs. That is why it is calling for a concerted approach from all the political tiers in order to solve the Island’s own problems and prepare for a resurgence of the local economy when the world-wide crisis is eased.

CEOE-Tenerife wants less bureaucracy and public intervention  so a more flexible economy can be created and to stimulate private investment. The association believes progress is being made in the right direction but the administration needs to do more. At times like this, austerity in public costs and priority in investment is vital. In particular, members are not in favour of increased wages for employees in the

Siam Park will attract thousands of toursists in the future!

Siam Park will attract thousands of toursists in the future!

public sector in the 2009 budget when their average pay is already 35 per cent above that of employees in the private sector.

Tourism is still the mainstay of the island’s economy but has pleaded for the rehabilitation of the tourist infrastructure and public spaces in order to keep Tenerife on the international holiday map.

Comments

By Angela | Posted in Economy, Tenerife | Tagged , , , , , , , , , , , , , , , | Comments (1)

Current Weather in Tenerife

November 19, 2008 – 7:53 pm

Want to know what it’s like in Tenerife at the moment? Have a look here

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The Holocaust - Let us NEVER FORGET!!

November 19, 2008 – 7:26 pm

A great friend recently sent me a slideshow entitled itseemsimpossible that he received by email on the subject of how time can (if we allow it, of course) erase many of our ‘bad’ memories.

Dwight D Eisenhower on discovering the Death Camps in Nazi Germany

Dwight D Eisenhower on discovering the Death Camps in Nazi Germany

More than 60 years have now passed since one of the 20th century’s most horrific examples of man’s inhumanity to man - ‘The Holocaust’.

It appears that, in BRITAIN, where every year on the 11th hour of the 11th day of the 11th month (the anniversary of the ending of World War I) we are proud to remember the millions of servicemen and women who gave their lives to make the world a better place, some references to ‘The Holocaust’ are being ‘edited’ from our schools’ curriculum.

The reason for this? - We are afraid that we may be embarrassing some of the population!!!!!!

I find this staggering in its insensitivity - don’t you?

If you have a minute, send the slideshow to people on your e-mailing list - we all have a chance to ensure that, just as we remember each year our own servicemen and women who gave their lives to ensure our lives were better and safer, WE MUST ALSO REMEMBER THE HOLOCAUST.

By admin | Posted in Miscellaneous Articles | Tagged | Comments (0)

Investors eye Tenerife for bargains

November 19, 2008 – 5:38 pm

Springtime in Tenerife

Though never really scorching, Tenerife is pleasantly warm all year round (not for nothing is it known as ‘the Island of eternal Spring’). With tourism on the rise as, for many people, Spain simply gets too hot, sticky and crowded in the summer months.

In view of this, the occupancy of property in Tenerife is generally in the range of 70% and 90% allowing investors to make rental yields of around 8% depending on how much they use their properties themselves.

Capital appreciation on apartments is likely to be around 10% -15% annually when looking at the long term (10-15 years), this despite the recent downturn in the world’s economy.

While Tenerife’s property prices are slightly higher than some of the emerging markets, you are paying a

The lovely Parque Don Jose complex, Costa del Silencio

The lovely Parque Don Jose complex, Costa del Silencio

little extra for the safety of buying a property that you can use/rent-out straight away, and in a secure, established environment which also has a well developed infrastructure already geared up for tourism, making the property easy to market for holiday rentals.

Just one example of the opportunities in Tenerife is the suburb of Costa del Silencio, where planning permission was recently granted for a new five star hotel with an artificial beach and a spa. This clearly suggests that the area is seen as a new growth area. Also in Costa del Silencio, the lovely Parque Don José complex has just received an EU grant to be used for making a massive upgrade to the resort, which of course will push prices upwards.

Now is probably the time to buy in Tenerife’s Costa del Silencio as prices have fallen dramatically over the last few months (as they have throughout the world).

By Angela | Posted in Property, Tenerife | Tagged , , , , , , | Comments (1)

Tenerife - A solid place for property investment

November 18, 2008 – 6:04 pm

For those who treat Spanish property as a long-term investment the current market provides excellent opportunities…

Buying Spanish property can still represent a shrewd long-term investment for overseas property buyers according to a new report from Shelter Offshore.

Although economic factors and the bad press the Spanish property market has been receiving may have deterred some UK buyers, for other investors the current downturn is “the opportunity they’ve been waiting for”.

People who are prepared to treat their Spanish property as a long-term concern, rather than a quick money-making scheme, should find plenty to interest them in the country at the moment.

Although the days are long gone where you could purchase an off-plan property and make a profit of at least £17,000 to £25,000 if you were to sell on completion, there are still certain types of properties that will appreciate in value.

It is important you buy somewhere in a prime location, and especially properties within walking distance of sought-after amenities such as bars, shops, restaurants, beaches and golf.

Many types of property could go down in price at some stage, but quality will go down the least and recover the quickest. It is also worth finding an area that hasn’t been overdeveloped as this is where properties are losing their value the most due to oversupply.

Although there are many property sites on offer, The Tenerife Property Guide is one that you might find useful, with its almost 9,000 property listings, and many ways of searching for that ‘dream home in the sun’.

Whatever is happening to the property market, all the features which have made it so popular with British buyers over the last decade are still there:

- Tenerife is easily accessible from the UK with plenty of low-cost flights available from many regional airports.

-Spain (including Tenerife) is also home to some beautiful coastal resorts which thousands of tourists flock to  year after year to soak up the sun, which also makes the country a good place to invest in a holiday home or buy-to-let property.

- According to a recent survey from Alliance & Leicester, Spain also contains the highest number of satisfied British expatriates than any other country.

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