The Lanzarote property market has experienced remarkable growth over the past year, with a notable 8% increase in market prices.
Nestled as the most northern and eastern gem in the Canary Islands, Lanzarote stands as a testament to the allure of second-home living. Within this autonomous community of Spain, Lanzarote is distinguished by its pristine sea air, glorious sunshine and excellent accessibility.
There are several factors that contribute to the country’s property market surge, including a historically low supply of resort properties priced under €250,000, leading to an inevitable elevation of property prices.
Additionally, the market has witnessed a significant shift in its demographic landscape, with an increased mix of international buyers. Among them, French speakers from Belgium and France have become particularly prominent, becoming the third most significant international buyer market since the pandemic began.
International buyer statistics
A glimpse into buyer interest in the beautiful volcanic island showcases the diverse interest Lanzarote has garnered from overseas buyers over the last quarter, underlining the island's growing international appeal: British buyers lead the way, comprising 34% of inquiries, followed by Irish buyers at 14.7%. French and Belgian buyers collectively represent 8.2% of the market, while German buyers make up 7.1%.*
Luxury real estate dynamics
Recent years have witnessed a substantial increase in prime and luxury property purchases across Spain. In Lanzarote, this is typically defined by specific price points, with prime properties falling within the €900,000 to €1,499,000 range, and super prime properties starting from €1,500,000 and above. Despite rising costs globally, the Canary Islands, including Lanzarote, have proven more resilient, with the market benefiting from tax-related incentives that appeal to savvy investors.
Impact of construction boom
Lanzarote has experienced a surge in construction activity, with new prime developments and luxury villas reshaping the region's property landscape. This uptick in construction not only contributes to the overall growth of the market but also elevates the island's profile, making it an even more attractive destination for potential property investors.
The island's property market is not only weathering the global economic challenges but is thriving, buoyed by the construction boom and the influx of high-net-worth individuals seeking prime and super prime real estate opportunities. As Lanzarote continues to carve its niche in the international property market, the outlook remains positive for both investors and the island's property sector.
Positioned off the west coast of Africa, this island paradise boasts a perennially warm climate, a captivating volcanic landscape, and sandy beaches that cradle vibrant resorts and a flourishing tourist industry. Beyond its geographical charm, Lanzarote beckons as an ideal haven for those seeking not just a residence, but a lifestyle defined by natural splendour and year-round appeal.
If you're interesting in making Lanzarote your new home or investment, we can assist you, please get in touch with us.
Contact:
Alasdair Hedley
Head of International
