Lanzarote Reopens For Business
Despite the Covid 19 crisis and the current confused messaging about travel restrictions and quarantine periods in Europe, demand for self-catering holiday properties on Lanzarote has remained surprisingly buoyant throughout the pandemic. With many owners and letting agents reporting reasonable occupancy rates between Summer 2020 and the Christmas period.
International Flights Resume
Lanzarote officially reopens to foreign tourists from July 1st – although international flights actually resumed on June 23rd with the first flight touching down from Manchester at the island's recently renamed Cesar Manrique Airport. And all indicators suggest that this small Spanish owned island located off the coast of Morocco is likely to remain a hot investment option for overseas buyers for many years to come.
Property Investment Hot Spot
Tourism first took off here in the 1970’s with the advent of package holidays. Whilst overseas investment boomed from the turn of the century – thanks to the growth of budget airlines and cheaper air travel from key markets such as the UK. Alongside a change in holidaymaker’s habits – as a growing number of tourists eschewed hotels and their all you can eat buffets and public spaces in favour of the greater privacy offered by self-catering holiday lets. Resulting in a boom in Lanzarote property sales and completions.
One of the greatest benefactors of these shifting circumstances was the resort of Puerto del Carmen – which is located just ten minutes-drive from Lanzarote’s international airport.
The main Avenida de las Playas, a beautiful palm fringed strip which runs alongside the resort’s golden sand beaches was still just a dirt track as recently as the 1980’s. But today is home to hundreds of restaurants, bars and shops – all of which service some 1.5 million plus overseas visitors a year. Whilst Lanzarote as a whole welcomed over 3 million holidaymakers in 2019 – a figure that has doubled since 2000.
Little wonder then Puerto del Carmen has been an investment hot spot over the last twenty years – with villa and apartment properties here in particular enjoying both substantial capital appreciation as well as reliable rental returns.
Key Attractions For Overseas Investors
One of Lanzarote’s main attractions for overseas investors is its clement year-round climate. Even in December the mercury rarely drops below 20C degrees here and as a result, tourists can enjoy a break in the sun whatever the time of year.
This spells a full 12 months-worth of rental returns for property owners seeking to let their properties out to tourists – a benefit which few other European holiday destinations can match. The island is also very accessible – with the major European tourist markets of the UK and Germany just a very manageable four-hour flight away.
Lanzarote is also blessed with some unique cultural attractions, such as the Jameos del Agua, which were created by the famous artist and architect Cesar Manrique. As well as some stunning natural wonders, such as the Timanfaya National Park. So helping to broaden the island’s appeal and overall tourist offering.
Lanzarote Property Prices and Rental Returns
So what sort of property prices and rental returns can investors expect? Entry level one bedroom apartments in Puerto del Carmen start from around the €100,000 mark. These properties are usually based on managed complexes which boast facilities such as large communal swimming pools, on-site shops and bars and managed reception areas.
This type of unit can be successfully rented out from €500 per week, rising to up to a €1000 per week during peak periods such as Christmas, Easter and the school summer holidays – with an occupancy rate of around 70% the norm.
Private villas obviously command much higher weekly rates. A typical three-bedroom villa with its own swimming pool which has been well maintained and is well presented will rent out successfully from €1500 to €2000 to per week. Rising to double that amount during peak periods. Prices for the sort of property that will achieve high occupancy and this level of returns start from around the €350,000 mark.
Which are the best areas within Puerto del Carmen for investors? The quieter residential enclave of Los Mojones is a hot favourite with investors thanks to the fact that it is located within a ten-minute walk of the main beach of Playa Grande as well as the Old Town Harbour area. Whilst Risco Prieto – which sits atop the Old Town Harbour and boasts great sea views is also a very popular location with holidaymakers.