Forum about Lanzarote

Hi i'm thinking of moving to lanza in the near future and cannot believe the price of houses how can people afford these houses on the wages you get there.I think they are way over priced i know its a beautiful island but it doesn't have a thriving economy to be looking for house prices like that.I have heard that the house prices are dropping could anyone tell me if this is true.

It is certainly a buyers market, but lets face it - isn´t everywhere. We are sitting here reading about the looming crash in the UK, and the plummeting American markets!

Relatively you can get a lot more for your money here....

For example [www.grupoestupendo.com] - a one bedroom apartment €93,500, for the sake of argument in somewhere like Eastbourne or Poole - a minor south coast resort town (not that the is any real comparison between CT and those places). That's 70,000 quid.... (with sunshine thrown in as an added feature, you won´t see that on any listing in the UK!)

Looked at Eastbourne... This was the cheapest 'comparable' (one bedroom flat) I found on right move [www.rightmove.co.uk] - looks delightful doesn´t it? :-) Seriously, the average for somewhere decent that you actually might want to live (assuming we take the 1 bedroom flat example) appears to be around the 110,000 quid mark...

It´s not like for like I know, but....

110000 minus 70000 = the difference in earnings perhaps...? I know where I'd rather be...



Edited 1 time(s). Last edit at 01/10/2008 12:35AM by Alan.

I agree its not a bad price for a one bed apart but im lookin for a family home and there all in and around the 300 to 400,000 mark i think thats pricey and not only that the square footage is tiny look wot you would get in OZ for that.The quality of build is crap to.

sonnie, if your serious about moving would suggest you look a bit further into the market and check out some more properties. My property would I guess cost about the same at home in Yorkshire as it did/would in Lanzarote. It might be a tough market both in Lanzarote and at home but even here in Yorkshire a new build 4 bed detached is going to cost the best part of £300k and what perhaps £500k+ in the home counties. You would probably find equivalent living space ten minutes walk from the beach for £300k or £350k with pool even less if you look inland a bit. As for the build quality being crap I would suggest it it no worse if not better than the UK.

RE build quality, you've go to understand that it's appropriate for the environment.

It wouldn't stand several tons of snow on the roof, but my house relocated to Lanza would be unbearably hot 90% of the year.

You're right about the square footage Sonnie. That's because we use meters here! So the plot and build sizes are much bigger than you think. With quick search I just found you a beautiful 4 bedroom detached villa on a 1000 square meter plot (nearly 11,000 square feet or a quarter of an acre). it's priced at €299,000 and is fully furnished and has a private swimming pool. Now that's about 225,000 sterling - what can you buy in UK for that?

Where is that Mike, sounds like a steal. Either that or you have just inadvertently answered the question about whether prices are dropping.

Playa Blanca, and it is a bargain, but there are plenty down there with a similar spec and price. I was just using it as an example to illustrate a point.

And no prices aren't dropping. Sure, the rate of increase has slowed over the last 2 years. The market remains strong in the typical "holiday home" type apartment sector and strong in the family residential sector in rural areas and also particularly in Arrecife.

Where it's struggling is in the higher value villa type properties above €400,000, and there are a glut of those on the market, so owners who are serious about selling are having to get serious about price and to consider offers.

Is that Sonny Bains?

Not doubting you Mike but you had me worried for a moment as the property you described sounded like my own and 2 years ago paid more than you are marketing this one for today. I am not looking to sell and know if I did it would be tough as fall into the category you descrbe in your last paragraph above but was a little perturbed for a moment there.

Think I have spotted the property on your site and it looks like a bargain to an amateur like me but has also reassured me looking at others that, based on asking prices at least, prices haven't suddenly slid while I wasn't watching.

Cheers, Stuart

Mike lets see the link to the property on your site please.

Don't think Mike can because of the advertising rules - buy I can It's [www.grupoestupendo.com]

C
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Sonnie,

You have all the answers above....

2 bedroom crap flat in Sutton £160,000......2 double bedroom 2 bathroom with large patio on front line and with use of three lovely pools..... 180,000 Euros....

Go in land and the world is your ......

Happy Hunting

Harry

Thanks CG but I wanted the actual link to the property mentioned as I am too lazy to trawl through the site, I think Mike can post it as he has been directly asked for it. He won´t be on now though he´ll be in his spa I bet!

HI THANKS FOR YOUR OPINIONS ON THIS TOPIC BUT MAYBE I FORGOT TO TELL YOU I LIVE IN IRELAND SO I DON'T HAVE THE BENIFIT OF THE EXCHANGE RATE LIKE YOU DO WITH STERLING TO EURO.I DON'T CARE WHAT ANYONE SAYS I STILL THINK ITS MAD MONEY EVERYONE IS SAYING MOVE INLAND YOU'D GET A BETTER HOUSE. THE REASON I WANT TO LIVE THERE IS TO BE NEAR THE SEA AND ALL THE GOOD FACILITIES.MIKE IF YOU COULD TELL ME WOT PAGE THAT HOUSE IS ON I COULD HAVE A LOOK THANKS ALOT......

Just search for a villa in Playa Blanca using the advances search on the site. And the rate of exchange isn't doing us Brits much good at the moment

C
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Sorry to contradict you Sonnie but with the current euro sterling exchange rate you're the one with the benefit not those of us who live in the Uk. The euro has never been as strong against sterling as it is now.

One of the reasons that Lanzarote property is relatively expensive are the restrictions on development. If the place was full of high rise flats then you would be able to get more of a bargain.

A property developer friend on the island told us last week that the newbuild market has been completely dead for at least 6 months but the value of resales is holding up (for the comfort of those of you who own property on the island).
What is sad is that some brits and irish who bought off plan have really caught a cold in that they have paid, say, 50% of the price and the banks are now changing their lending terms and refusing to finance so much of the balance. Canny buyers are looking for the opportunity to buy the contracts and they're getting relative bargains as it's the only way for people who would otherwise lose a lot of money to get it back.

Josie

Josie i have to say i agree with some of your points but when i leave Ireland with euro in my pocket its still the same when i arrive there, when you leave england you will gain with the euro.I would hate if Lanza had high buildings thats why it doesn't have that tacky look like some parts of southern spain does.In ireland for 350,000 you get a ok house and you could pay for your mortgage just about if 2 people are contributing to the bills and theres a lot of work here.but if there's not much work there how can you afford a mortgage like that.

Sonnie - not sure what your point is!!! You are being rather negative!

Do you actually know lanzarote?!! When people say move inland we are talking being a 5 minute drive from the sea - not the equivalent of living in Derbyshire or something!

And you don't seem to understand exchange rates either!

350E for you will always be 350E but for UK buyers - back last summer when the Euro was about 1.44 to the pound would have cost me about £243k to buy but now with the Euro nearer 1.3 to the pound it will cost more like £270k.

In other words exchange rates fluctuations mean that for someone from the UK to buy that house will cost an EXTRA £27,000!!! For you the house still costs exactly the same! So exchange rates at the mo certainly not benfiting the UK.

What you maybe suggesting is that someone working in London earns more than someone in Ireland and that is true.

I DID NOT REALISE THAT YOU WERE LOSING MONEY WHEN YOU CONVERTED OVER.
ITS JUST WHEN I TALKED TO PEOPLE IN THE PASS I ALWAYS THOUGHT YOU DONE WELL WHEN YOU CAME OVER WITH THE CONVERSIONS OF THE DIFFERENT CURRENCIES.I HAVE LIVED THERE IT WAS ABOUT 10YRS AGO.I HAVE BEEN BACK LOTS OF TIMES I KNOW IT WILL NEVER BE THE SAME BUT REALLY ALL I'M TRYING TO POINT OUT IS THAT ITS GONE VERY EXPENSIVE TO BUY FOOD,PROPERTY ETC.