Entries from October 2008 ↓

I would like to share with you an article I read recently in Tenerife News - the leading English newspaper provider in the Canary Islands. The article outlines the benefits from investing in the property market even in these troubled times.

I will share with you the conclusion of the article but it is well worth reading the whole article, by Financial Correspondent - Blevins Franks.

In times of heightened volatility and greater uncertainty, it is even more important to maintain investment discipline. In particular, diversification ‘ across asset classes, regions, investment styles and securities ‘ maximises the chance that investors will participate when asset prices recover. It can also provide some protection should some asset classes experience further falls.

A globally diversified REIT fund offers the opportunity to obtain exposure to non-domestic markets, which can offer varied return characteristics. Real estate cycles in different markets and sectors are driven to a large extent by local factors such as gross domestic product growth, taxation policies and government initiatives. A globally diversified fund therefore provides greater stability for investors and a wider opportunity set for active managers than would be available in a single market/region.

If you have Real Estate as part of your portfolio, this is the time to maintain investment discipline; if you do not, perhaps this is the best time to take a closer look at this asset class.

Our top locations for investment properties:

• For properties in Tenerife, click here.

• For properties in Cape Verde, click here. If available, view the Due Diligence packs provided that outline estimated ROI. e.g. Our 2 bed apartment, Dunas Beach Resort, Sal, Cape Verde.

Hi everyone,

Just to keep you up to date with the latest availability for properties on Dunas Beach Resort - Sal, Cape Verde. All prices indicated have recently been heavily discounted by the developer.

• 3 bed garden apartment (Block 10) - €204,950
• 2 bed apartments (Block 7) - €209,950
• 2 bed upper penthouse (Block 7 upper floor) - €219,950
• 2 bed lower penthouse (Block 10 lower floor) - €214,950
• 2 bed garden apartment (Block - €199,95

Site plan - click to enlarge

For information on the Cape Verde Islands, view our blog entry or visit the Cape Verde’s homepage on www.dwood-property.com

Lanzarote´s grand dame of tourism is about to undergo a facelift.  As big plans are afoot to transform the island’s main resort of Puerto del Carmen into a stylish, upmarket holiday destination.  Replete with a new luxury marina and golf course. A project that is likely to have a positive impact on the price of property in Puerto del Carmen and the surrounding environs in the medium to long term.

Formerly a small fishing village called La Tiñosa, Puerto del Carmen has long been the engine room of both the Lanzarote property market and the islands tourist industry.  Thanks to a year round clement climate that attracts both tourists and overseas investors in droves.

The resort has also long been the hub of British and Irish expatriate life on the island. And is home to the bulk of the 6,000 plus officially registered residents from Eire and the UK that have made Lanzarote their permanent home.  So creating demand for relocation, long term rental and commercial property in addition to those seeking to invest in holiday rental property.

But over the last few years the resort has started to look in need of an MOT and oil change. As the effects of over thirty years as a popular package holiday destination have taken their toll on both facilities and infrastructure.  Raising the fear that Puerto del Carmen could start losing vital tourist trade to newer, fresher competitors around the world.

Nowhere has this deterioration been more apparent than on Puerto del Carmen´s main beachfront strip – the Avenida del las Playas.  Where pedestrians come a poor second to cars and have to fight for pavement space with each other.  Set against a garish backdrop of neon lit bars and restaurants.  Creating an outdated and some would say downmarket image  – in what is meant to be the main shop window for tourism not just in the resort but on the island as a whole.

In order to maintain Puerto del Carmen’s competitiveness as a desirable holiday destination island authorities have pressed the button on a multi million euro project to “reinvent” tourism in the resort.  Encompassing a number of initiatives such as the part pedestrainisation of the Avenida de las Playas and the harmonisation of shop fronts and fascias.  In order to create a more aesthetically pleasing tourist offering.

But the main plank of the project remains the plan to transform the Old Town harbour area (currently home to a few fishing boats and excursion vessels) into an upmarket marina.  With moorings for luxury cruisers and yachts.  A move that is designed to attract a more affluent type of tourist to the area.  Whilst also providing competition for the hugely successful marina at nearby Puerto Calero, just a few miles down the coastline.  Where property prices command a serious premium.

 Along with the opening of a new golf course (still only the second on the island) on the edge of town this year these moves seem likely to sustain both tourist numbers and property prices in Puerto del Carmen over the medium term.  Regardless of the current condition of property markets worldwide.

Hi everyone,

Just to keep you up to date with the latest availability of properties on Tortuga Beach Resort - Sal, Cape Verde. All prices indicated have recently been heavily discounted by the developer.

• 3 bed detached villa (Type B villa) - €439,950
• 2 bed corner apartments (Type F apartment) - €199,000
• 2 bed, 2 bath apartment (Type D apartment) - €170,000
• 2 bed, 1 bath apartment (Type C apartment) - €170,000
• 2 bed, 1 bath apartment (Type E apartment) - €145,000
• 2 bed, 1 bath apartment (Type G apartment) - €145,000

Feel free to refer to the plan below by clicking on the thumbnail image for locations of each property type and please keep a note of the property type when making an enquiry.

Please click to open the full-size image.

No, there is no error in the title! The developer really is offering this to anyone wanting to buy property in Cape Verde. Take a look at their properties on offer in Creola Sands and Sabi Sands located on the beautiful island of Boa Vista.

The prices for the deposit including the Exchange Bond fee for the 1^st phases on both Creola Sands and Sabi Sands have been confirmed…

Prices for deposits are as follows:

• Studio €7,500
• 1 Bed Apartment €10,000
• 2 Bed Apartment €15,000
• 3 Bed Apartment €20,000
• Villa or Townhouse €25,000

Monarch airlines has announced the addition of extra flights to Lanzarote and other hot spots in the Canary Islands this winter.  As the low cost flight operator anticipates increased demand for winter holidays amongst British consumers – despite the current economic conditions.

Extra flights to Lanzarote will be departing from major UK airports such as Gatwick, Manchester and Birmingham throughout the Christmas and New Year period.

According to Liz Savage from Monarch:” The additional flights are great news for Monarch customers looking to get away this Christmas. Early indicators show that our customers are considering the Christmas getaway as important as ever and are continuing to snap up Monarch’s low fares in their droves. With 64 additional flights being added into the flying programme offering in excess of 12,000 further seats, getting away for Christmas has never been easier”.

Monarch has in fact already beefed up services to Lanzarote during October in order to cope with increased demand across the half term break.  With extra flights from Gatwick departing to Arrecife airport every Thursday.

Owners of apartments and holiday villas in Lanzarote will be amongst the main beneficiaries of this increase in business.  As hotels only account for one third of Lanzarote´s official tourist capacity of around 65,000 beds. With the rest allocated to apartment complexes and privately owned holiday properties.

Despite the credit crunch demand for holidays in Lanzarote has remained buoyant in both the UK and Ireland.  With visitor numbers from both of these countries up versus 2007 figures for the year to date.

In a further vote of confidence for the islands tourist industry newly launched airline Kiss Flights – an operation set up by Gatwick based aviation broking company Meridian Aviation – has also entered the market.  And have just started selling seats to Lanzarote for the summer 2009 season.

Letter written to accompany a petition sent to Number 10 Downing Street in October 2008 by Nick Johnson.

Our Money Our Choice.

Dear Prime Minister,

As we all know these are difficult times that we are in and I’m sure that makes your job even tougher than it would be normally. You must however be made to understand that it has affected everyones lives and that it is our money you are using to bail out the inept bankers who have put us all in this situation including yourself.
We the British nation did not vote you into power, neither did we give you permission to use 50 billion pounds of our money to bail the bankers out, by the time we have finnished I’m sure the amount of money we will have put into our failing markets will be much higher.
As a well respected businesman myself, if I had to put that sort of money into another business to keep it afloat I would look long and hard at the management team that had caused the mess in the first place.
I call for two things.
Firstly, a restructuring of our banking system top to bottom, by that I mean, put in measures that make sure this can never happen again and get rid of, or sack the people responsible for this mess both in the banking industry and Government.
Secondly. If you are going to use large sums of our money, I for one would like a say in the way it is used. I would like to have some control over to who and when, I lend my money. I would like a referendum on the subject seeing as I will be one of millions of people who will have to pick up the bill.
We all make mistakes, but if we make a huge one at work then we normally find ourselves unemployed, can you please tell me how it is possible the people concerned are still working in the same office on the same inflated salaries as if nothing has happened.

Yours Sincerley,

Nick Johnson

City centre flats dominate a survey indicating the 10 areas in England and Wales with the biggest annual fall in property prices.

A recent survey conducted by mouseprice.com suggests Deansgate in Manchester, Erebus Drive in Thamesmead in London, Elmwood Lane in Leeds, and Millsands in Sheffield, South Yorkshire (15.1% drop) have witnessed the biggest falls in prices.

Source: www.bbc.co.uk

The survey was based on Land Registry sale price statistics and updated with valuation data gathered from surveyors.

Click here to view the full story from the BBC.

Despite failing airlines, falling currencies and the current gloomy economic outlook the number of foreign tourists visiting Lanzarote continues to rise. According to figures recently released by the Spanish airport authority AENA.

Overall, foreign visitor numbers to the Island of Fire have increased by 3.4% during the first eight months of 2008 (versus 2007 figures). Numbering 1,092, 892 holiday makers. With tourists from the UK, Lanzarote´s largest market, leading the way and accounting for well over half of this total, with 571,851 visitors to August end. An increase of 7.9% on 2007.

The Irish are also evidently reluctant to surrender their holidays abroad – and are now firmly established as Lanzarote´s third most important market (after Germany). With a total of 150,003 tourists from Eire touching down at Arrecife airport during the first eight months of this year. An increase of 4.7% on the previous year’s figures.

The only negative note comes from the German market – where visitor numbers are continuing in their longer term downwards pattern of decline. Falling 10.2% so far on 2007 – as German tourists opt for other destinations.

The majority of British and Irish visitors will be staying in apartments or holiday villas in Lanzarote. As of the islands overall official capacity of 65,293 tourist beds only 25,196 are accounted for by hotels. With the rest taken up by apartment complexes and private villas.

This in turn ensures that whilst the level of demand for Lanzarote property is way below that of previous years there is no sign of complete paralysis in the market. As currently appears to be the case in the UK. With overseas buyers still showing interest in holiday rental properties on the island, particularly at the cheaper end of the market.

As a result prices have, to date, remained relatively stable. With only vendors who are forced by circumstance to sell needing to resort to significant price reductions in order to induce and attract buyers.

That being said all of the islands largest estate agents are reporting a significant decrease in transactions versus 2007 – with many also anticipating a tough trading year ahead in 2009.