Do you dream of buying a property in the Canaries?
Although the short-term market prospects for the Canaries and Tenerife are still uncertain while the mainland European countries continue to focus on containing the Covid-19 pandemic, the long-term forecast is looking good.
There are many reasons to feel confident about the property market in this part of the world as demand for houses in these areas has always picked up quickly regardless of the economy.
People will always want fantastic properties in the sun!
At present, there has been, as everywhere a halt in property sales and notaries around both countries have been advised to postpone any signing of deeds while the state of emergency is still in force, except in cases of what are deemed ‚urgent‘ cases.
Here at Tenerife Sun Properties, we still have numerous inquiries from our clients who want to arrange viewings once the lockdowns are over – although we are advising there is no transactional movement for the foreseeable future.
Although we were all affected by the 2008 financial meltdown, we are conscious that this global lockdown is hugely different. During the economic crisis, banks, businesses, and many individuals were affected, and many blamed the poor decisions made by banks and other financial institutions.
However, this pandemic is affecting us all – not just financial institutions, and most nations, particularly in the European Union, accept that the pandemic of Covid-19 is a natural disaster that affects everyone.
As a result, most governments, in principle at least, are claiming that they are committed to supporting societies and their economies, ensuring that they will not fail in the face of this potential disaster.
In the 2008 crisis, countries such as Spain and its surrounding areas suffered substantial financial losses, which had been growing over a few years. The construction industry in these countries was severely hit, and there were also record highs of highly levered mortgages that affected not just the struggling countries in this part of the world but hundreds of individuals as well.
We, at Tenerife Sun Properties, want to assure you, as our valued customers, that this is not the case now.
The property market is not nearly as vulnerable as it was in 2008, and new construction represents much smaller shares of the overall property market. Banks have also been more cautious with their lending – lessons from 2008 were seriously learned.
There will always be people who are forced to sell their properties for their own personal reasons, but it’s thought that generally, things will pick up again slowly after the lockdowns.
The property, after Coronavirus, will still be seen as a tangible asset even in the worse possible scenarios, unlike stocks and shares, which have resulted in record losses.
Houses can always be rented out, which can generate additional income for the present-day and can be a nest-egg for your future. By investing in property, whether it is for your primary residence, a second home or part of your portfolio, will buy you something concrete, that exists, regardless of whether markets rise or fall, and offers you a substantial shelter for your savings.
It won’t be long before you are browsing through our website, check out your very own holiday home in the sunshine!