Local real estate agencies see a surge in demand and recovery of vacation rentals in 2022

With vaccination and the return of tourists, homes are "again looking for vacation rentals"

January 20 2022 (20:18 WET)
Updated in January 20 2022 (21:00 WET)
New construction homes sell quickly in Lanzarote

The real estate agencies interviewed by Ekonomus agree on their optimistic forecasts for 2022, in a scenario characterized by the strong demand for housing and a return of vacation rentals after the shock caused by the pandemic.

Juan Antonio Peña, director of the real estate agency Grupo Martínez Hermanos, explains that the trend in the sector in Lanzarote for this year looks "very good for the seller because there is a high demand for housing and not so much supply." He adds that "a price increase of between 5% and 8% is estimated throughout 2022." On the other hand, the buyer "has a profile with considerable resources and savings contributions, so they have no problem accessing financing." For example, "in areas like Costa Teguise there is high demand. Developments of 50 homes with terraces, some with pools and others without, have been sold in a period of between 6 and 7 months, which translates into a very accelerated level of sales."

Daniel Portieles, director of In-Max Lanzarote, points out that "the demand for housing has increased considerably throughout the island and we believe that during 2022 it will continue to grow, especially with regard to resale housing since there is very little new construction for sale."

 

New construction, the main protagonist

 

Both real estate agencies agree that new construction housing will have a greater demand compared to resale housing. "New construction homes are all being sold quite quickly, and resale homes are doing so at a more normal pace," says Peña, who adds the importance of open spaces and terraces for "customers, who after experiencing being locked up, want to change homes and look for larger spaces."

In search of these spaces, In-Max Lanzarote explains that although Arrecife is the place where they do the most operations, "the most in-demand are Costa Teguise and Playa Honda, with the latter being the most sought after to reside in and the place where the price recovered first after the crisis."

 

The types with the highest demand

 

Regarding the type of houses, from Grupo Martínez Hermanos, they state that "in areas such as Costa Teguise, Playa Honda, or Playa Blanca, there is a demand for semi-detached duplex housing, attached with a garden and even with an individual pool. In the towns, what sells the most are detached single-family homes, which have another price and both the supply and demand are lower."

From In-Max Lanzarote, they state that "the most sought-after houses are 3-bedroom houses with outdoor space to be used as a habitual residence, and 2-bedroom houses in Arrecife to be used for rent, since interest rates are very attractive and money in the bank does not give any return."

Regarding the buyer profile, Peña points out that it is very segmented since "there are many national buyers who, due to the pandemic, have had the capacity to save during these years because spending related to tourism, vacations, and daily life has decreased," and the foreign buyer is looking for "a second residence that provides them with an outdoor space that their homes in large cities do not have." While Portieles notes that "most buyers are over 35 years old, and those younger do so with the help of their parents, either through guarantees or by lending them the money."

 

Buying or renting homes?

 

Peña adds that in Lanzarote, home buying and renting operations "are balanced, as today there is high pressure on rentals, but there is also high demand for buying." In addition, he explains that "at the beginning of the pandemic, whoever had a vacation home stopped receiving income and quickly allocated it to long-term rental. When the fear of traveling ceased and with the arrival of vaccination, Europeans have been encouraged to travel a lot and there has been an exit of long-term rental homes that were again looking for a vacation rental. Therefore, there is again pressure on long-term rental housing and as for sales, there is a forecast of price increases (between 5% and 8%)."

 

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