Introduction:
Lanzarote has initiated the process of officially designating the island as “touristically saturated.” This designation will significantly impact the real estate market in Tenerife as well. It is worth examining how this will affect property prices, the availability of properties for sale, and the rental apartment market.
Under the “touristically saturated” status of Lanzarote, there will be substantial implications for property prices in Tenerife. Stricter regulations on the real estate market and limitations on new property developments can result in a reduced supply of available properties, leading to an increase in prices. Prospective buyers in Tenerife are likely to encounter higher prices due to the restricted supply of properties.
Property Prices :
The “touristically saturated” status will have a significant influence on property prices in Tenerife. The classification of the island as a tourist area will result in more stringent regulations and restrictions on property development. These new regulatory measures will decrease the availability of properties, as there will be limited opportunities for new projects. Consequently, this shift in the supply-demand balance will lead to a notable increase in prices. As a result, property buyers will need to contend with higher prices and a narrower range of options to choose from.
Properties for Sale:
The introduction of the “touristically saturated” status in Lanzarote is expected to reduce the number of properties available for sale in Tenerife. Due to increased building restrictions and stricter regulations, fewer new properties will enter the market, as these measures aim to curtail excessive tourist developments. Consequently, prospective buyers will face a more limited selection of properties. The decrease in available properties will result in higher demand. Potential buyers will need to exert more effort to find suitable properties, as prices will be higher due to the reduced supply. It is advisable to closely monitor the local real estate market and seek expert advice to stay informed about the latest trends and market conditions.
Rental Apartments:
The introduction of the “touristically saturated” status is expected to impose limitations on the size of rental apartments in Tenerife. The new regulations may target the excessive number of smaller-sized tourist apartments. Consequently, there will be fewer options for smaller rental apartments in the future, as the new regulations restrict their size. Tenants will need to adapt to these unfavorable restrictions and choose from a more limited range of options. This restricted selection for tenants may lead to higher rental fees due to the smaller size of available properties.
Significant changes can also be expected in the market for short-term rentals, such as apartments rented for days, weeks, or holidays. The “touristically saturated” status will limit the number of rental apartments in designated tourist areas, particularly in larger and more crowded tourist zones. As a result, tenants who previously had access to a variety of smaller-sized apartments will need to adapt to new regulations and higher prices. Property owners should also expect stricter inspections, as many previously rented apartments may lose their rental permits under the “touristically saturated” status.
In Conclusion:
The implementation of the “touristically saturated” status in Lanzarote will have an impact on the real estate market in Tenerife. Higher prices, limited availability, and size restrictions on rental apartments can be expected. Prospective property buyers and tenants should stay informed about market changes and adjust their strategies accordingly. Seeking guidance and information from real estate experts is advisable for making well-informed decisions.
