The Real State Of The Property Market In Tenerife

tenerife property

The real estate market in Tenerife has been struggling for some time now, but the picture may be more complicated than you realize. While many are waiting around for conditions to improve, it may actually be a great time to invest in this market.

In recent years, the Tenerife real estate market has been flooded with repossessions from banks and distressed sales. This can make the market look intimidating from the outside. It's a great opportunity for investors though because it means there are lots of cheap property bargains available for purchase if you know where to look.

People looking to buy property in Tenerife are in luck. Spanish banks have been lending less money in recent years, but you should be able to get a loan as long as you don't have major debts and credit problems or seem like a risky choice. It's a great time to swoop in and buy a property in Tenerife for much cheaper than it would have gone for ten years ago.

Renters will have a slightly harder time. There's a glut of rental units on the market at the moment, which can make finding renters for your property difficult. Things will be easier if your mortgage is already paid off and if the building you're renting doesn't have high monthly fees.

If you can be flexible on what you're charging for rent, there are always people looking for a place to stay in Tenerife. Things aren't perfect for renters here, but they're not the disaster you might think either.

It should come as no surprise that those looking to sell property in Tenerife are going to encounter the most problems. As with Europe and, indeed, much of the world, the real estate market has struggled in recent years. However, Tenerife properties have one important boon going for them: They're on a relatively tiny island where there's only so much room for expansion and new buildings to go up.

Unlike mainland Spain, Tenerife has not seen a surge of new properties popping up, which has helped insulate its real estate market slightly. That said, Tenerife is also full of properties that were bought years ago from easy-to-obtain loans and are now being flipped as quickly as possible. In other cases, banks have repossessed buildings that could not be paid off. These banks and distressed sellers are often willing to close for much less money than should be expected, which can hurt more serious sellers and lower the overall value of property in an area.

Distressed sales are a market problem all around Europe in general and Spain specifically, and Tenerife is no exception. It's worth speaking with an experienced real estate agent or someone who's an expert in property sales in Tenerife to get a feel for what other locations similar to yours are selling for. If you price your house high above the market norm, it's going to sit and not sell forever.

Many long-time property owners in Tenerife have set their desired sales prices at absurd levels that simply aren't realistic in the current real estate market. In some cases these buildings have been sitting empty, waiting for a buyer willing to offer that price for many years. You don't want to lowball the cost of your own property, but you also don't want to price out any buyers that might be interested. It's worth it to take the time to find that happy medium where you'll be making enough money off the sale to be happy but potential buyers will still be interested. You don't want the property to sit on the market forever.

Delmar, an agent based in Los Gigantes, feels there are lots of opportunities available but you need to look outside the main resorts to get good value for money.

Similar Articles

Buying Your First House

Are you planning on buying your first home sometime soon? If so, I am quite sure you're very excited about the possibilities. Purchasing a house for the first time, however, is no easy feat. It is far too easy to make mistakes along the way.

What is Escrow

There are many terms you’ll need to get your head around if you want to have a deep understanding of real estate. One of those words, which you may have heard before in many different contexts, is “Escrow.”

Virtual Site Visit

Buying or selling a home is an exciting experience for anyone. While there is the thrill of the hunt and the excitement of the deal, doing it is no small feat. It is one of the biggest financial decisions of your life and can also be complicated and stressful if you don’t have the right real estate agent to help you out through the process.

What Does Credit Karma Do

Are you interested in buying your first home but don't have the best credit in the world? If you have been paying attention, you've probably seen an ad or two on television about Credit Karma.

Property Management Tips to Earn Passive Income From Real Estate

Is there anything more satisfying than passive income from real estate? It can supplement your regular income and help you achieve a high level of financial comfort.

Drawbacks of Flat Fee MLS

When something in life seems too good to be true, it probably is. In real estate, the perfect example of this definitely has to be flat fee MLS. Selling your home is already a costly expense once you factor everything in, so any way you can save money should be always welcomed, right?

Portable Moving and Storage

Moving home is an exciting time; there is no doubt about that. Though, that is before you start to think about packing all your belongings in boxes and loading them onto a truck. Which could take up way more time than you’d like it to, typically a whole day depending on how many belongings you need moving to your new residence.

Questions to Ask a Moving Company

When you are looking to hire moving companies, you are at risk of things going wrong or unfair business practices happening to you. Since, typically, people don't move that often, it is understandable that you might not know the right questions to ask moving companies.

A kitchen with wooden walls and an island in the centre.

So, you’re thinking of buying a house. Congratulations! Whether you are buying your first house, looking for something bigger, or even downsizing, we’ve got you covered. Buying a house is a huge decision, and it requires time, commitment, and patience to find the right house.