British 'Love Affair with Mainland Spain' Cools as Buyers Turn To The Canary Islands

As the love affair between British property buyers and mainland Spain cools, investors are looking towards other markets to fulfill their needs for affordable holiday homes in warm places. Some of these property buyers are turning to the Canary Islands, which have long tempted Brits away from the mainland. The main reason is that the weather is better. The Canary Islands, for example, found off the west coast of Africa, offer the warmest winter weather in Europe. Property on the island of Tenerife has always been the most popular due to in the main the island’s excellent infrastructure.

This beautiful island is the jewel in the Canary’s crown. It is the biggest and home to some of the most luxurious properties in Europe. The Abama Luxury Residences offers the ultimate in ‘designer homes’ and is situated in the ‘best beach community’ in Europe as voted by readers of  the prestigious travel magazine 'Conde Nash Traveller'.

The reasons for the island's enduring popularity are more than just down to weather, it has attractive coastlines, areas of outstanding natural beauty (70% of the island is given over to protected National Parks, and is also home to Spain’s highest peak - Mount Teide).  Excellent infrastructure and there are regular daily direct flights to and from the United Kingdom from most airports.

The majority of buyers head for the south of the island and it is still possible to find property for those without celebrity-sized bank accounts - prices in the south generally start at around €100,000 (euros)  for a studio suite or 1 bedroom starter home. Predictably, it is here that most sun-deprived Brits look to buy (around 44,000 Britain’s already have).

Tenerife has re-branded itself in recent years as a five star venue. There are more five star hotels in Tenerife than all the other islands put together (including the Balearic Islands). Tenerife has gone ‘up market’ including the shopping with all the designer brands on offer. Another advantage of Tenerife over other areas of Spain is that the island has a 12-month rental season. The winter rental market is propped up by what estate agents term "swallows", retirees who head over for the winter, looking for longer lets.
There is also a high return rate to Tenerife. 70 per cent of visitors have been to the island before, and this means that people tend to re-book the same apartments - cutting down on administration time and marketing costs. Rental yields, are between five and 7.5 per cent as an average. Buyers who approach it as a business generally do very well out of it.