Tenerife: Real estate brokerage on the island of eternal spring

INTERVIEW WITH CAROLINE MÜLLER, LICENSING PARTNER AT VON POLL REAL ESTATE TENERIFFA SOUTH.

Off the west coast of Africa, in the middle of the Atlantic Ocean, lies the largest island in the Canary archipelago - Tenerife. It is home to the Pico del Teide, a dormant volcano that is also the highest peak in Spain. Due to its year-round mild climate, Tenerife is also known as the "island of eternal spring" and boasts a rich variety of flora and fauna as well as contrasting landscapes. In the south of the island, in Los Cristianos in the municipality of Arona, Caroline Müller, license partner at VON POLL REAL ESTATE Tenerife South, is on site with her team to accompany prospective buyers on their way to their own property in Tenerife. She gives an overview of the island's real estate market and shows why it is advantageous to approach buying property in Tenerife together with an expert.

Mrs. Müller, what makes the Canary Island so attractive to international buyers? What is its appeal?

CAROLINE MÜLLER

Tenerife is particularly popular due to its mild temperatures all year round, which only rarely fall below 20 degrees or exceed 30 degrees. The advantages of the island can therefore be enjoyed all year round.

Tenerife offers an incredible variety - from extensive beaches with fantastic water sports opportunities to numerous cycling and hiking routes and cities with a wide range of cultural attractions and many historical sights. So whether prospective buyers are looking for a vibrant lifestyle or prefer peace and quiet and closeness to nature, Tenerife has something to suit every taste. Another important factor is the island's excellent accessibility in just a few hours by plane from numerous European cities. This naturally also increases interest from international buyer groups.

Which international buyer groups are particularly active on Tenerife? And how high is the proportion of local prospective buyers?

CAROLINE MÜLLER

The prospective buyers who come to our VON POLL REAL ESTATE store in Tenerife come almost exclusively from other European countries. Spanish prospective buyers only account for around five percent of real estate inquiries - 95 percent are therefore from international customers. Prospective buyers from the DACH region - i.e. Germany, Austria and Switzerland - and the UK make up the largest proportion of international prospective buyers with around 25 percent each, followed by 20 percent from Belgium and the Netherlands, 15 percent from Scandinavia and five percent from Eastern Europe. Two types of buyers are particularly well represented: Families and older couples. While families tend to be looking for a house with enough space and large outdoor areas to spend their vacations together, older couples tend to look for condominiums that they can use as a winter home and later often as a retirement home.

What criteria do prospective international buyers look for when searching for a property? Which locations are the most sought-after?

CAROLINE MÜLLER

First and foremost for international prospective buyers is the location - more specifically, the immediate proximity to the sea. This means that demand for properties from Los Cristianos to Costa Adeje is accordingly very high and properties in these regions do not stay on the market for long. However, the area scores points not only for its location by the water, but also for its excellent infrastructure, which is being expanded and improved year on year. Furthermore, the Abama Resort Tenerife is located there, more precisely in Guía de Isora on the west coast of Tenerife, which gives the region a high degree of exclusivity.

Speaking of exclusivity, is there a particular price category in which international buyers are particularly active?

CAROLINE MÜLLER

The real estate market in Tenerife has changed considerably over the last ten years - the market for premium properties in particular has gained significant momentum. In 2014, for example, it was still very unusual to have a property worth over three million euros on offer. This is now quite normal. Today, we have a large portfolio of very high-priced premium properties from three million euros upwards in our VON POLL REAL ESTATE store and at the same time a correspondingly high demand for properties in this price range.

Of course, there are also properties in the price category between 200,000 euros and 500,000 euros, but we have significantly fewer properties on offer here than in the high-price segment. However, the few properties in this price segment are sold extremely quickly and do not remain on the market for long.

This means that the real estate market in Tenerife also offers great potential for value appreciation. What other trends and forecasts do you see for the market?

CAROLINE MÜLLER

Property prices on Tenerife have risen significantly over the past ten years - in some cases, prices per square meter have even doubled in the top locations, which is definitely an indicator of Tenerife's high potential for value appreciation. In fact, we see no end to this development. Due to the fact that Tenerife is an island, space for new building land will also be limited at some point. Despite everything, the demand for owning a property on the island remains high, which will continue to influence the price of residential property.

Currently, there is also a regulatory change or tightening with regard to vacation rentals on Tenerife. For example, only ten percent of the total residential development area of a municipality may now be used for tourist rentals. As a result, some owners who have purchased their property on the island for investment purposes and therefore rent it out will probably sell it again. However, this will not affect prices, as the demand for properties for owner-occupation is high. In fact, the majority of our clients at VON POLL REAL ESTATE Tenerife South purchase a property on the island exclusively for private use and not to rent out.

Finally, do you have a few tips for prospective buyers when purchasing a property on Tenerife?

CAROLINE MÜLLER

We always recommend that prospective international buyers in particular seek expert advice when purchasing a property on Tenerife. It is very important to choose a professional and competent real estate agency - because although there is a large selection of real estate agents on the island, not all of them offer the desired services. We have often found that prospective buyers don't look carefully at the choice of agent beforehand and fail to check documentation and legal information on property rights - this can lead to unpleasant surprises.

We also recommend that buyers always consult a lawyer and tax advisor to guide them through the process. For example, we work with a local network of experts - from the lawyer to the notary to the builder. In this way, we can guarantee our clients a smooth real estate brokerage and offer them maximum security and transparency in the real estate transaction.

Ms. Müller, thank you very much for the interesting interview.

Further information about the team around Caroline Müller from VON POLL REAL ESTATE Tenerife South as well as the current real estate offer on site, contact details and much more can be found at: https://www.von-poll.com/de/immobilienmakler/teneriffa-sued