Tenerife property market growth

Tenerife Property Shop, released their monthly analysis of the South Tenerife property market today. 

The report highlights trends in prices, activity on the market and draws parallels with the UK property market, which it cites as a major underlying factor in determining the direction the local market will take.

The report identifies a rise of 9% in the number of transactions on the previous year, suggesting that the property market in the South of Tenerife may be continuing its tentative recovery after a slow second six months last year.

A rise in the number of new enquiries implies that this recovery will not run out of steam, at least not in the near future.

It also noted that February is typically a strong month, and the report goes on to say that some estate agents - suffering from a lack of commission since the summer ' are gambling on a continuation of the market recovery and are failing to "price realistically".

Mary Spencer, a director of Tenerife Property Shop commented, 'The buoyant economy and low unemployment that underpin confidence in the UK market are having some effect on property in the south of Tenerife.  Many owners are UK resident and are not in a position of economic hardship that would force them to reduce prices.'

The report also identifies an increase in the number of properties being put on the market.  'When the increase in supply of property is combined with a market in which there is no strong economic need to sell, the result is an increase in the average 'time to sell', despite the rise in enquiries and transactions,' Mary Spencer told us.

Properties that have been priced realistically are maintaining a strong sales volume.  In depth analysis shows that those that are priced even slightly above their value are staying on the shelf.  Mary Spencer commented, 'Where vendors have agreed to price their property in line with our valuation, we are seeing strong activity in terms of numbers of viewings.  Those that are priced higher are receiving little or no interest from buyers.'

Areas where the pick up in transactions is strongest include Golf del Sur and Amarilla Golf, while Playa de las Americas and Los Cristianos remain relatively unchanged.  Callao Salvaje and Playa Paraiso are the poorest performers in terms of enquiries, viewings and transactions.  The report suggests that areas that are of interest to both tourists as well as residents, such as Golf del Sur or Amarilla Golf, are picking up faster as demand is stronger from foreign buyers than residents.