Tenerife Price Trends
January 14th, 2008
Question: Is the property market in decline on Golf del Sur, in San Miguel, Tenerife and if so by how much? What are the rental yeilds for a 3 bed villa on 2nd line?
Answer: Here’s our price comparison chart for Golf del Sur, and for Tenerife.
Although we’ve been recording the asking prices of property in Spain since mid 2005, I suspect that the early fluctuation in both graphs is due to a relatively small sample of properties at that time.
Even today we have fewer than 200 properties in Golf del Sur and a little over 2,500 in the whole of Tenerife.
With such a small sample of properties available, adding or removing the properties from an individual estate agent can have a disproportional effect on price trends too.
The official government figures are of no help here either. Their calculations are suspect for all the reasons I’ve written about
before.
There’s another source of commercially available information which you might want to investigate.
Their report takes into account 8,000 properties, which represents about 40% of 2006 property transactions (probably even more because the report focuses on the island of Tenerife and the Ministry of Housing stats are for the group of Islands which include Tenerife, La Gomera, La Palma and El Hierro.
Finally, regarding the rental market for properties, I’m afraid there’s even less information available.
We’re currently listing one off plan development in Golf del Sur and a handful in the whole of Tenerife.
I’m aware that developers are bundling lots of extras into deals at the moment – mortgage holidays, no legal fees and guaranteed rental. It might be worth sending off a few enquiries to see what’s available at the moment – that would probably be your best indication of likely rental yields.
Martin Dell, Kyero.com
