Discover the top reasons why buy in Lanzarote?
Real Estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, Paid for in full, and managed with reasonable care, It is about the safest investment in the world.
10 Good Reasons to Buy Property in Lanzarote
There are thousands of investment opportunities in the world, but if you have come to this point, you probably have the same dream as most people: to generate passive income and live comfortably from it. As we already know and as John Stuart Mill said: “Landlords grow rich in their sleep” – at least in Lanzarote this is possible and probably this is one of the most important reasons to seriously consider investing in a property here.
Beneficial legislation change
Until the end of 2018, Playa Blanca and Puerto del Carmen were classified as touristic areas and Costa Teguise as a mixed zone, at least from a legal perspective which officially forbad holiday-letting in these areas (even though practically there were very few consequences for villa owners that let their property to tourists). In December, this Decree that regulated Holiday lettings within the Canary Islands was declared void, which is why it is relatively easy to obtain a touristic licence in this area under the condition that the property fulfils other legal criteria.
1. Uninterrupted Rental Income Stream & High ROI
Compared to the mainland of Spain or any other place in Europe, there is no seasonality in Lanzarote. If you are thinking about buying a property to let to holidaymakers, you can expect a continuous, steady income generated from rentals. Thanks to the innovative disruption of Airbnb and other platforms such as HomeAway, there is a huge demand for private villas and apartments, leading to an occupancy rate of up to 95% with some properties. Due to this and the continual income, you can achieve a return on investment
(ROI) between 6-15%, depending on your property type and other factors.
Don’t wait to buy real estate, buy real estate and wait.
2. Low Initial Investment
Compared to other regions in Spain and even in the Canary Islands, properties in Lanzarote are relatively low-priced and affordable. The average price per square meter in the Canary Islands is €1.733 (January 2023 according to Idealista), whereas buying, for example, in Catalonia will result in at least double (€3,934/m²).
Other islands in Spain, such as the Balearic Islands, which also offer stunning landscapes and holiday flair, have an average price of €2,133, still a significant amount above. Additionally, they are freezing in winter, whereas residents in the Canary Islands are still getting tanned at the beach! Not to speak of England’s or Wales’ real estate prices, where the average price per square meter is £2,930, 19% more than 5 years ago according to Rightmove!
3. Climate – no seasonality
As already mentioned, the huge demand for private holiday homes and the chance for holidaymakers to enjoy sunshine and an extraordinary climate generates steady tourist streams in winter as well as in summer months. The island is quiet but never empty! Islanders and visitors enjoy what we call the eternal spring with an average of 25ºC and no more than 10 days of rain per year. We do not suffer from cold temperatures nor do we have to put up with the unbearable heat as experienced sometimes in big cities in central Europe.
4. Easy to Rent and Manage
Due to all the factors mentioned above, the option of renting out a property and offering it to tourists is facilitated. The process is quite straightforward and can be very simple if you use the help of professionals such as villa management companies that take care of everything related to holiday letting your villa, such as cleaning, pool maintenance, managing the bookings, receiving the guests, etc.
5. Popular Tourist Place
Lanzarote receives on average 3 million visitors from England, Ireland, Germany, Mainland Spain, and other European countries every year. It has gained never-ending popularity due to its stability, safety, and richness of natural and cultural offerings.
6. Good Infrastructure and Facilities
Compared to other holiday spots in the world that offer the same tranquillity and calmness, Lanzarote offers good infrastructure and connections between the individual resorts. It also provides facilities and services that enable visitors to maintain the same standard and lifestyle as in central Europe. Fibre optics and fast internet connections are the norm in main spots such as Playa Blanca, Puerto del Carmen, and Costa Teguise, as well as in other populated regions.
7. Safety
The Canary Islands belong to Spain and, therefore, politically speaking, European territory. The same standards, laws, and safety measures apply as in many other countries of the continent, with a significant police presence in the hot spots of the island. Especially in times of COVID, not only Spain but also Lanzarote has proven to be very efficient in solving problems and protecting its inhabitants and visitors from dangers.
8. Breathtaking Landscapes
El Golfo, Playas Papagayo, El Risco de Famara, the volcanoes of Timanfaya – the list of beautiful sceneries on this island is extensive. The diversity and mix between stunning white natural beaches and moon landscape-like volcanic surroundings impress even repeat holidaymakers and visitors each year.
9. Cultural Offers, Sports Activities, and Events All Year
Apart from beautiful natural areas, the island has more to offer. If you think that this is an inactive island, you might be surprised. Events like Ocean Lava, usually in October, and Ironman events take place regularly. When it gets cold in England or Germany, the inhabitants of Lanzarote visit the artsy caves of Jameos del Agua, where you can enjoy gastronomic and musical experiences every Saturday.
10. Lifestyle, People, Mentality, and Spanish Vibes
Lanzarote is home to many people originally from the northern part of Europe – which is likely due to the wonderful climate! The positive energy of the inhabitants has motivated thousands of migrants to live here all year round. The optimism and openness towards visitors of the locals is infectious. Or it might be the local but world-famous wines from the vineyards in La Gería, or the Mediterranean cuisine with great health benefits.
Conclusión
After considering all these points, the question is: Why not buy in Lanzarote? With uninterrupted rental income, low initial investment, great climate, easy rental management, a popular tourist destination, good infrastructure, safety, breathtaking landscapes, cultural activities, and an amazing lifestyle, Lanzarote stands out as a top real estate investment location.
Frequently Asked Questions about Why buy in Lanzarote?
Why buy in Lanzarote?
Lanzarote offers a steady rental income, low initial investment, great climate, and a popular tourist destination, making it an ideal place for property investment.
What is the ROI for properties in Lanzarote?
You can expect a return on investment between 6-15%, depending on your property type and other factors.
How affordable are properties in Lanzarote?
Properties in Lanzarote are relatively low-priced compared to other regions in Spain and the Canary Islands, with an average price of €1,665 per square meter.
Is it easy to rent out a property in Lanzarote?
Yes, renting out a property in Lanzarote is straightforward, especially with the help of villa management companies that handle everything from cleaning to guest management.
What is the climate like in Lanzarote?
Lanzarote enjoys an eternal spring climate with an average temperature of 25ºC and no more than 10 days of rain per year, making it a perfect destination all year round.
