Value of property in Tenerife is a much discussed topic in the Internet as well as offline.
You read so many suggestions to help buyers buy at the right price at the end of 2009.
Statistics of Tenerife property sales prices are supposed to give an inclination about what real estate is worth in different areas of Tenerife.
For example: How can a general square meter value for a place like Tenerife Realejos, which has huge, varied terrain with different climate zones and for different life styles, be a proper indication?
Or look at the following situation...
The Hotel Maritim of Los Realejos has private apartment owners who sell property.
Practically, such an apartment belongs to Puerto de la Cruz, as it is close to Loro Park and the beaches of Playa Jardin.
The title deeds will place it into Los Realejos sales.
Does that mean that you should now listen to statistics and talk its price down when you want to buy?
This would offend the seller with its value asked for such a property in Tenerife.
Le Petit Prince called the little prince in English, said in this famous novel by Saint Exupéry that the economist only sees figures and numbers. However, he affirms also in other context that those mean nothing in the end. They are not the essence of value. This should be everybody's philosophy.
The damage which is done to the Tenerife economy by generalizing real estate value by so called surveys with figures and numbers of Tenerife property sales is dangerous.
My last home sale which was a big property taught me much about this.
One of biggest and so called best real estate agents handled the deal by exclusive mandate.
The time of the sale could be much compared to the situation in Tenerife since the 2008 world property slump and economic recession.
Many people emigrated because they were scared by politics and other aspects. There was a surplus of housing on the market. Of course, we had adjusted our asking price after consultation with the real estate expert.
Of course, I can give you all details, if you want to know, as the sale went above board and all taxes were paid.
To keep a long story short, I should say that we sold our property within only 3 month. What counts is that the buyer told us later that he would also have bought it, if we had asked 25 per cent more for it. This means that statistics generalize and must be taken with a pinch of salt
My own property experience reminds me that some Tenerife properties have indeed dropped their prices by more than 50 %.
May be owners are in a hurry to sell. There may be all sorts of reasons. An inadequate real estate agent could be one of them.
Just figure buyers who have been manipulated by the Media arriving at a real estate agent and demanding a so called bargain...
Cheap Tenerife properties are then dished up first to see. The buyer might lose out on a realistically priced one, which could have been his dream home and which he was never shown.
In difficult times, most real estate agents and above all smaller ones, and this also applies to Tenerife, will do anything to keep a price low, in order to survive with their business financially. If a Tenerife real estate agent has reached his minimum goal for a month, he might be more flexible with his advice for a sales price for a property in Tenerife.
On the other hand, nowadays, you will find some Tenerife real estate agents online, who only have very few price catchers published and ask you to contact them to get prices about other properties.. Now all depends on the conversation you will have.
Certainly, any statistics thrown in while negotiating for lower prices for a property in Tenerife may help. However, they may also anger the seller, because each property is individual. Not even totally new real estate in apartment blocks or resorts can all have the same price.
For example, generally, a better view is obtained from more height. But, then there are buyers who don't like height and will not accept a higher price for such property in Tenerife.
The biggest demand by foreigners is the holiday home. Statistics cannot reveal accurately how much of such property in Tenerife has been sold.
It is impossible to see by a survey for districts or major towns how many Tenerife holiday homes have been sold.
Certainly, trendy places by the beach, such as off lately Adeje in Tenerife South, will fetch more interested parties to buy property. Hence, higher property price demands will follow.
We may assume that Tenerife property sales of Adeje concerns holiday homes, as locals are less likely to buy there. And, foreigners are inclined to buy property in Tenerife by beach and golf resorts for investment purpose and if only to invest in their own well being.
When a figure of general square meter value for Adeje real estate is given by Euro 2423, which is a relative success rate for Tenerife property sales, then this appears to be a good inclination.
Square meter value figures for La Laguna have gone up slightly as well. Why? San Christóbal de La Laguna is first of all the only university town of Tenerife up to 2009. Lets assume that the property sales prices for La Laguna had plummeted after 2008. The new sales price which portrays more value by square meter may only be seen in relation to the price asked. Its rising only means that demand must have been relatively high as student rental is almost guarantied in La Laguna. It might also have been a proposition for locals to buy property there for their own sons, who will enter university sooner or later.
Extremely low property square meter values must be taken with a huge pinch of salt. Reason being is that cash payments are almost part of age old customs in established old Spanish communities, above all in rural areas around a big Tenerife town.
Private Spanish sellers as well as non resident sellers will seldom give you a real price of a sold property in Tenerife.
I would like to know your experiences with this. Contact me please, and no need to give me your full name...
Some time ago, I read a testimony by an English couple. The man and woman bought new property on mainland Spain from a developer. They were so thrilled to have found a bargain dream home, which they could not afford a couple of years ago, that they came forward to share their joy. They even published the buying price and details. That review was really a helpful exception. It may well have been Tenerife property, you know...
About half a year ago, I tried to get a general idea from a small real estate agent in my area on property sold by this agency.
His wife made a mistake and said spontaneously that they had not sold anything in a certain period. Her husband interrupted and said that they had sold quite a bit despite recession. He wanted to give the impression of a successful real estate agent, in my mind.
We may never know for sure what Tenerife property sales prices were really like. Some real estate is bought, where a UK seller pays partly in cash. This is not reflected in the title deeds. He may even get an encouraging property deal to pay partly in the UK to avoid loss of foreign exchange by a depreciated UK pound value. Also, some cash payments of property in Tenerife are put up locally on the island without being mirrored in the title deeds.
So how can you be sure what property in Tenerife is worth when you want to buy or sell?
You can look at a portal, such as ventadepisos.com. There, asking prices include square meters of real estate with photos. However, a real estate agent, whom you may trust is your alternative, if you don't understand Spanish. After all, you will never know the difference between prices asked and prices fetched by property in Tenerife which has been sold.
Besides, much property is flooding the market for long term rental, whose proceeds serve mortgage repayments.
However, why is it that prices for holiday lets have not really dropped from Euro 35 a night in general? Not even over winter 2009 and 2010...
The Tenerife property holiday home market is not as bad as some Internet webs make you believe.
A better property in Tenerife turnover is needed. It is on its way. The Spanish government and Tenerife are very likely to implement a German model for shorter working times with normal work contracts instead of contract labor. The previous good economy is bound to bounce back to help Tenerife property sales.
This is confirmed by Tenerife Adeje property values and by La Laguna. Often, property quality is of secondary importance. However, a location can fall by grace. New locations may take over by happenings in the future, which may not be foreseen. My own motto is to never buy too close to a river, to the ocean or to forests.
Look at the large Orotava Valley which includes Los Realejos... There is many a dream home hidden in areas, that you might not even guess. Also, despite Tenerife improvements, which often take longer than they should, much is happening there. A former traffic chaos area may be expected to be a shopper's and tourist's delight sooner than later, such as Longuera of Realejos.
Conclusion: Tenerife is a buyers' market paradise since 2009. No doubt about it...
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