Tenerife Residential Property Market Recovery

Although the main resort areas of the southern coast of Tenerife are experiencing a revival of demand, the same cannot be said for residential property located further inland.  These are the primary homes of expats and locals who are resident, and are located in the many towns and villages around the island. 

The recession has had its effect on the local economy as fewer tourists spend less during their visit.  Perhaps the largest impact has been the reduction of the number of tourists from the UK, due in a large part to the devaluation of the Pound. 

The areas where residents live are experiencing a very low volume of sales at the moment, and will not recover until the local economy does.  When increasing numbers of tourists return to the island (and the figures look encouraging for the summer), so the money they spend will filter down into the pockets of those who work for and run local businesses.  It is only when confidence returns to this sector that residential sales in these areas will start to pick up.

This represents a great opportunity for the increasing numbers of people who are deciding to move to Tenerife at the moment.  With a higher proportion of distressed sales than the second home and tourist areas, many properties in these residential towns and villages have experienced reduction after reduction in order to tempt buyers. 

After the summer season, it is likely that demand will start to return, spurred on by increased liquidity in the local economy.  Until then, buyers will find themselves in an ideal market where they continue to call the shots.