Friday 2nd February 2024
Lanzarote, a captivating island in the Canary Islands archipelago, has garnered significant attention from overseas buyers looking for an idyllic retreat or savvy investment. With its time zone the same as the UK and easy access, roughly only 4.15 hours flying time from London, Lanzarote has become a particularly enticing prospect for British and Irish property investors, second home owners and retirees.
They may be drawn too by the warm, sunny climate, relaxed lifestyle, favourable cost of living – there is low tax on the Island – alongside its architectural charm dominated by low lying white buildings, its clear light, big skies and dramatic landscapes. There has been investment in infrastructure and attractions including an upmarket shopping centre in capital Arrecife, in luxury marinas, and in triathlon training, led by Club La Santa.
Keen to drive sustainable tourism and to protect the Island’s resources for the future, there is a growing focus on wellness and health, quality tourism development through experiences and events, such as Iron Man.
Architectural Charm and White Low-Rise Buildings
Lanzarote is renowned for its architectural charm, characterized by an impressive array of white low-rise buildings that blend harmoniously with the island's natural surroundings. The island's architectural style, inspired by local artist César Manrique, exudes tranquility and purity, creating a serene atmosphere for residents and visitors alike, drawing in buyers seeking an escape from bustling city life.
Clear Light and Scenic Beauty
Lanzarote's geographical location and clear skies create a unique quality of light that has long attracted artists and photographers. The island's remarkable clarity of light intensifies the natural colours of its landscapes, making every vista a feast for the eyes. Whether it's the volcanic landscapes of Timanfaya National Park, the stunning beaches, or the charming fishing villages, Lanzarote's clear light enhances the island's scenic beauty, captivating visitors and buyers alike.
Sustainable Tourism Development: A Key for the Future
For Lanzarote, sustainable tourism development is crucial to preserve the island's natural resources and ensure its long-term appeal to overseas buyers. The authorities are committed to maintaining the unique charm of the island while accommodating the growth of its property market responsibly. Investors who prioritize environmental sustainability will appreciate the island's efforts to strike a balance between development and preservation, making Lanzarote an attractive choice for those seeking a sustainable investment opportunity.
Fantastic Climate and Seasonal Appeal
Lanzarote's climate is an essential factor in attracting buyers. With mild temperatures year-round, the island offers a welcoming escape for Europeans and Brits seeking respite from harsh winter months. The warmth and sun-drenched days of Lanzarote make it a popular destination during winter, while Spanish visitors, especially from the mainland, flock to the island in the summer months to enjoy its vibrant ambiance and stunning beaches. The island's seasonal appeal ensures a steady stream of visitors and rental demand for property owners.
Playa Blanca: A Premier Spot for High-Quality Resorts and Villas
Playa Blanca, a picturesque coastal town in Lanzarote, has rapidly emerged as a prime location for upscale resorts, new development and villa accommodation.
Elsewhere on the island, demand for exclusive beachfront family villas and apartments in some locations is such that they rarely appear on the open market. Buyers are advised to work closely with connected real estate agents who have intricate knowledge of the local market dynamics to secure these sought-after properties.
Buying in Lanzarote: Considerations and Opportunities
Like many other countries, including the UK, the cost of construction in Lanzarote has risen, as has the cost of land. There are building restrictions too. However, despite these factors, new developments are under construction, making buying off-plan a wise move for those seeking advantageous opportunities.
Engaging the services of a reputable real estate agent with expertise in the local market is the best way to navigate the complexities and ensure a successful and informed purchase. Buyers should also be aware of the associated costs, such as transfer tax, notary fees, land registration fees, and lawyer fees.
Dynamic Rental Market and Investor Opportunities
Lanzarote's rental property market is highly sought-after, driven by increasing demand from digital nomads and high-net-worth individuals seeking investment opportunities. Short-term letting requires obtaining a VV license or Tourist license. While short-term rentals may require higher maintenance, the potential returns of 10-12% make them an enticing prospect. For those looking for long-term rental returns, Lanzarote's stable market offers expected returns of 5-6%. The high demand for rental properties signifies the island's appeal and the lucrative possibilities it holds for investors.
Attracting New Industries for Diversification
To diversify from tourism, where the island may be saturated, Lanzarote is actively seeking to attract new industries with new initiatives such as its special economic zone. This diversification aims to create a stable, sustainable and balanced economy – and future - for the island.
If you'd like to make a Lanzarote getaway more permanent, contact Hamptons International today.