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 Post subject: Is there a property boom in Lanzarote?
PostPosted: Mon Jan 05, 2015 3:17 pm 
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Joined: Sun Jan 04, 2015 1:55 pm
Posts: 20
I ask because we were looking to buy a property this year.

A couple of months ago, we saw one we liked and it was 169,500 euros, it then went up to 179,500 and in the last couple of days it has gone to 198,500. I have even seen it on one agent's site for 210,000!

We know from having looked in the past that sellers in Lanzarote do not appear to be open to offers and that the price advertised is the price they want and expect, however outlandish it may appear.

Has the crisis in the Eurozone now passed Lanzarote by?

Is this opportunism?


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 Post subject: Re: Is there a property boom in Lanzarote?
PostPosted: Wed Jan 07, 2015 11:14 am 
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Joined: Fri Aug 28, 2009 9:14 am
Posts: 230
I'd be guessing talk of economic recovery in the UK and Ireland is one of the main factors in rising asking prices in Lanzarote. (As far as I can see, it is just talk at the moment)

Parrot wrote:
Has the crisis in the Eurozone now passed Lanzarote by?

No

Parrot wrote:
Is this opportunism?

Yes

Property moves slowly in Lanzarote - make an offer and then sit back. Hopefully, you'll get a reasonable response and be moving in within 12-18 months.


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 Post subject: Re: Is there a property boom in Lanzarote?
PostPosted: Wed Jan 07, 2015 3:06 pm 
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Joined: Mon Mar 31, 2008 2:10 pm
Posts: 1024
Ha!! What a load of bull!!

If there was a property boom why is this property still on the market?!

In London where there most certainly has been a boom property was selling within a day of it going on the market and completion happening within 6 weeks.

The sellers you talk of are not serious sellers and are just speculatively marketing there property on the off chance of a crazy offer.

Do your best to get comparable historic info, but do not get drawn into a non existent bidding war - chances are you will be bidding against yourself and the agent talking up the price.

Spanish property values are notoriously dodgy, no-one knows if the bottom has been reached. If Greece goes tits up there will be a whole new round of bailouts and will put huge pressure on the slowly recovering spanish system.

Having said all that if the euro plunges then there will be the opportunity for bargains!

As long as you are not overstretching yourself to buy in the first place then no reason not to buy somewhere....but suggesting there is a boom is laughable. Most of the prices you see in the agent windows are fully negotiable especially if you are a cash buyer from what I have been told.


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 Post subject: Re: Is there a property boom in Lanzarote?
PostPosted: Wed Jan 07, 2015 5:15 pm 
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Joined: Sun Jan 04, 2015 1:55 pm
Posts: 20
Thank you for your replies and your common sense!

I raised the question as in the last few weeks I have noticed that prices are not starting to creep up, but leap up and it just made no sense at all.

We have been planning this for a very long time and have therefore had an eye on what is going on and what is available.

3 years ago, we were shown 3 properties and they are all still for sale - 2 at the same price (and I thought they were dear then) and another which was 170,000 is now 230,000 which to me seems like madness.

I have made a number of enquiries with agents recently and I am still waitng for replies from all but one of them, despite the fact that we are cash buyers.

I think it is opportunism on the part of most, but you can't force people to sell, I suppose that if they are serious sellers, then hopefully they will be willing to negotiate.


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 Post subject: Re: Is there a property boom in Lanzarote?
PostPosted: Thu Jan 08, 2015 10:31 am 
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Joined: Tue Nov 25, 2008 11:59 pm
Posts: 99
If you are talking about Playa Blanca, then there are a few more factors:

Some new developments were repossessed by banks and sold off at more than 60% discount from the original prices. Most of these have now been sold, so the oversupply has been reduced greatly.
There are still some developments with legal problems available at great discount, but prices of fully legal properties are definitely going up.
If those properties are legalised, then maybe that will affect the supply-side, but that's just speculation.

Prices are higher than two years ago in PB, but there were some pretty extreme circumstances with over supply and Banks clearing their books back then.

Also, prices in the British ex-pat dominated parts of the island have always been very sensitive to the Sterling exchange rate, and Sterling is close to a 5-year high against the Euro.


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