Investment Potential

Blue skies, blue seas and a blue chip investment!
For a number of reasons, owning a property in Tenerife has a sound commercial basis which augurs well for future stability and despite the occasional pauses and even the odd setback; the price of property and land has always proved to be the ultimate winner as a medium to long term investment.

Tenerife forms part of the sovereignty of Spain, yet has its own autonomous government. Having an expanding economy, euro currency and Spain being a member of the E.E.C., Tenerife is very attractive to foreign investors.  Tenerife has the highest repeat visitor ratio in Europe and because of the all year round climate giving a twelve month holiday season, the demand for rental accommodation continues to grow. If you combine the stability of the Tenerife sun and subtropical climate with the demand for rental accommodation by tourists, then it is easy to understand why Tenerife is so attractive to property purchasers.

The demand for property by purchasers and the demand by tourists for accommodation mean that the potential capital growth and income for the investor is beyond normal expectations, particularly in the sunny south of the island where most visitors choose to stay.

In past years many people have made substantial gains from investing in new developments, buying “off plan” to achieve the lowest prices and best locations. Some speculate with the intention of ‘selling on’ their purchase contract before the completion of a development to restrict their outlay to initial deposits and capitalising on price increases issued by the developer during the construction process.

Investment periods are generally between 15 and 18 months and the profit return in the past under normal circumstances has been between 20% and 35%. However, there are many considerations to take into account when deciding to embark on this type of venture and as part of our service to clients, we offer a personal consultation in this respect before any action is recommended or taken.

Availability of these opportunities is, by their nature, limited, so please contact us for comprehensive details, guidance and advice regarding current or future availability.