The Day the Tenerife Property Market hit Bottom
We know that there are literally hundreds of people waiting to be sure that the Tenerife property market has hit bottom before they purchase their own homes in the sun. We can now say with some certainty exactly when the Tenerife property market actually hit its lowest point.
Tenerife is an island, but its property market is in no way isolated and the outside world influences our property market. The economies of the rest of the world, and specifically Spain and the UK all have an influence on Tenerife. The problem is that it is not all that easy to spot when the market has bottomed because there is always so
much data about. Much of this information is about what influences the property market and most of the time we are left to guess what actual affect it all has on Tenerife.
The most recent economic news from all these three influencers show signs of recovery. World property markets are starting to pick up and Spain’s Economic minister assured the country this week that the worst of the recession is over, which has been reinforced by the drops in unemployment over the last few months. The UK has seen property prices rise and there too, the signs of recovery are starting to make the headlines.
How has all this positive news affected the Tenerife property market? The first indicator of property market recovery is the number of people enquiring about property. From Tenerife Property Shop’s statistics, we can see that enquiries overtook the previous year in June – ie there were more enquiries for Tenerife Property in June of this year than in the same month of 2008. The trend continued through July and August, each beating the previous year by an increasing margin. There is a time lag between an enquiry and an actual sale, so it was not until July that sales overtook 2008, and this is likely to continue as the year progresses.
These figures are a magnifying glass on Tenerife’s micro property market in the south of the island. However, they clearly indicate that the bottom of the property market in terms of demand reached its lowest ebb in May 2009. since then, we have seen three months of consecutive rise in both enquiries and sales. The future for Tenerife Property is looking brighter than it has for a long time.
