10 Good Reasons Why 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: 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 considering investing in a property here.
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 so 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 of up to 95% with some properties. Due to point 2 and the continual income, you can achieve a return on investment between 6-15% (depending on your property type and other factors).
ROI between 6 and 15%!
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 m2 in the Canary islands is 1.665€ (January 2020 according to Lancelot) whereas buying for example in Cataluña will result in at least double (3.934€/m2). Other islands in Spain, such as the Balearic islands that also offer stunning landscapes and holiday flair have an average price of 2.133€, still a huge amount above (and they are freezing in winter whereas residents in 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 at 2.930 pounds, 19% more than 5 years ago according to Rightmove!
3. Climate – no seasonality
As already mentioned before, the huge demand for private holiday homes, the fact that holidaymakers have the chance 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 we can experience it sometimes in big cities in central Europe.
4. Easy to rent and manage thanks to point 1, 2 & 3
Due to all the factors mentioned above the option of renting out a property and offering it to tourists is facilitated. The process is quiet straight-forward and can be very simple if you use the help of professionals such as so-called Villa Management companies that take care of everything related to Holiday letting your villa such as clearing, pool maintenance, managing the bookings, receiving the guests, etc.
5. Popular tourist place
Lanzarote receives averagely 3 million visitors from England, Ireland, Germany, Mainland Spain and other European countries every year and has owned itself a never-ending popularity due to its stability, safety and richness of natural and cultural offers.
6. Good infrastructure and facilities
Compared to other holiday spots in the world that offer the same tranquillity and calmness such as Lanzarote, it is an island that offers a good infrastructure and connections between the individual resorts but also other facilitates and services that enable visitors to maintain the same standard and lifestyle such as in central Europe. Fibre optics and fast internet connections are the norm in the main spots such as Playa Blanca, Puerto del Carmen and Costa Teguise as well as in other populated regions.
Due to the fact that the Canary Islands belong to Spanish and therefore, politically speaking, European territory, the same standards, laws and safety measure apply as in many other countries of the continent, with a great 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. Breath-taking landscapes
El Golfo, Playas Papagayo, El Risco de Famara, the volcanos of Timanfaya.. the list of beautiful sceneries that we can find on this island that seems so small on the big world map. The diversity and the mix between stunning white natural beaches, moon landscape-like volcanic surroundings impresses even repeating 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 and if you think that this is an inactive island, you might be surprised when you see the Ocean Lava, usually in October and Ironman events that takes place on a regular basis. When it gets cold in England or Germany, the inhabitants of Lanzarote visit the artsy caves of Jameos del Agua were you can enjoy a gastronomic and musical experiences every Saturday.
10. Lifestyle, people, mentality and Spanish vibes
As we all know, Lanzarote is home for many people that originally are from the northern part of Europe – which probably is not only due to wonderful climate! The positive energy of the inhabitants have motivated thousands of migrants to live here all year around – the optimism and openness towards visitors of the locals is just infectious. Or is it maybe the local but world famous wines from the vineyards in La Gería that makes residents and visitors that happy? Could be also the Mediterranean cuisine that has great health benefits… After all these points the question is: Why not buy in Lanzarote?