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
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).
