Lanzarote in the Canary Islands is one of Europe´s key investment hot spots. Boasting a population of around 140,000 residents which is augmented by an influx of around 130,000 tourists per month. Creating the ideal preconditions for a flourishing holiday rental market.

As a result property in Lanzarote is in some demand – especially with British investors, who constitute the largest visitor group by nationality. As well as making up around 6% of the islands total population. With British buyers also currently benfiting from the resurgence of sterling against the euro.

Like the rest of Spain and indeed the developed world Lanzarote suffered somewhat during the economic crisis last year. But now both tourism and the property market are starting to bounce back. Whilst the prices of many Lanzarote villas and apartments remain at very attractive levels.

Unsurprisingly the main resorts offer the safest rental returns – with Playa Blanca and Puerto del Carmen the most popular holiday destinations.

Property in Playa Blanca has flourished over the last decade as this new resort has expanded rapidly. With good quality villas with private pools available now from around €200,000. Investors here can expect to enjoy a return of around €500 per week on their investment. Comparable properties in Puerto del Carmen are more expensive by comparison – but at the same time offer higher rents.

At the budget end of the market investors can also get a foot on the first rung by buying an apartment property. Apartment based holidays are very popular, especially with British tourists. And there´s a wide array of complexes in Puerto del Carmen offering good quality accommodation. With investors able to buy their way in from around €50,000 upwards.

More intrepid investors will want to investigate the options in Lanzarote´s countryside, where rural tourism is currently growing apace. Thanks to the fact that the island attracts a lot of repeat visitors, many of whom want to connect with the more authentic side of Lanzarote. The north is the best bet for investors in search of good value traditional properties. With villages such as Maguez and Haria offering a decent array of old stone houses at reasonable prices.

Key to Lanzarote´s success as both a holiday destination and its property sector is its climate. The sun shines here all year round, so investors can enjoy 12 months worth of rental returns too. Whilst rainfall is minimal.

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