Tenerife Property Recovering

Tenerife Property Shop, in their regular report on the property market, record an increase in transactions for the month of February.  A rise of 9% in the number of transactions on the previous year is further evidence that the property market in the South of Tenerife may be starting a 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.

Areas where the pick up in transactions is strongest include Golf del Sur and more recently Amarilla Golf, while Playa de las Americas and Los Cristianos remain fairly unchanged.  Callao Salvaje and Playa Paraiso are the poorest performers both in terms of enquiry and transactions.