The Tenerife Property Market - are You Losing Out on Investment

If you have not been adversely affected by the credit crunch you are probably unique. It seems that all borrowers and savers have been affected in some way or another. Interest rates are now lower which does help borrowers but savers will now have serious concerns. Those that don't borrow or save may have been affected by the rising cost of imports, especially from the Euro Zone, the cost of holidays, reduced equity in property or some other negative peculiarity.

The current financial turmoil will no doubt continue for a while but when will the pendulum start swinging back towards economic growth? Past history has shown that all markets do recover eventually but the burning question is when?

If you are a saver or an investor you have probably been asking yourself what should I be doing now. Interest rates are lower now than most of us can remember and investor returns are bordering on negative, when taking account of inflation. The more cautious investors will probably decide to sit it out on the basis that things can only get better.

What we have noticed generally here, as Tenerife Estate Agents, is that Tenerife property prices have not fallen as much as they could have done compared to other locations. Most people who have invested in a Tenerife property tend to be financially well established otherwise they would not have been able to purchase what is probably a second home. Property prices only tend to fall when people need to sell and when this is coupled with a lack of demand.

The Tenerife property market is not exactly booming at the moment but properties are still being sold. Those properties which are being sold are marketed at a reasonable price because the owner wants a sale to be achieved. Furthermore, we are seeing that most purchasers are discerning investors looking for quality properties at the right price. The current Tenerife property buyer is looking for short and long term property growth, the added benefit of owning a holiday home and perhaps securing an income from holiday rental.