Golf Bounces Back… and Investors Reap the Rewards
While many rental property investors in Tenerife have been feeling the recession pinch, golf home owners have already seen the end of the dip. Some of the biggest winners in the post-recession comeback are those who rent out properties in the Golf del Sur and Amarilla Golf areas.
Over 80,000 golfers visited Tenerife in the first quarter of this year, bringing numbers back to the heights that they scaled before the recession. Of these, over 12,000 rented apartments and villas in the San Miguel area, a figure which is seen as an underestimation as many apartments for rent are not declared to the tourist board.
For Tenerife’s property owners, golfers are the ideal group to stay in their property. 60% are aged between 46 and 65, so they tend not to have all night parties, ruin the decor or disturb the neighbours. Golf properties need much less maintenance than those near the beaches of Playa de Las Americas and los Cristianos.
Golfers are also a particularly lucrative market for the island: 43% of Tenerife’s golfing tourists are company directors. A sensible assumption to be drawn from this is that they are likely to be more discerning. Most stay in 4 or 5 star hotels, and those that stay in apartments and villas will tend to choose those which are more recently built on pristine complexes.
Golf is one of the fastest growing sports in Europe and the island’s fairways are successfully luring players from across the continent. About a quarter of the island’s golfers come from the UK, and the same amount from Germany. Scandinavians and Spanish from the mainland make up the next largest sectors. The remaining third who come from other countries make up the fastest growing group, more than doubling in numbers since the previous quarter.
Golf is not as sensitive to the whims of individual economies as other forms of tourism, ensuring that renting owners on apartments around Tenerife’s golf courses have the most stable client market.
But perhaps the most important statistic for owners of golf properties is the number of golfers that have visited before and are returning. Golfers are a loyal group and 63% who visited the island in the first quarter of this year have been before. Repeat visitors are likely to stay in the same accommodation, as long as they were happy with it. Such a high rate of rebooking means that marketing costs for renting golf properties get lower and lower as owners build loyal customers.
With such a recession-proof investment, you would expect golf properties to be extortionately expensive. However, the construction industry has certainly not weathered the recession well, and right now it is possible to purchase some fantastic newly built bargain property on Golf courses, perfect for golfing holidays.
If you are an investor looking for an excellent return on your capital, or you are considering your first investment in property… Tenerife’s golf properties are nigh on impossible to beat!
Article kindly provided by Marketing Tenerife.
