Real estate, one of the best investments in Spain
There are several investment alternatives available, but if you’ve reached this point, you undoubtedly have the same desire as the majority of people: making passive income that allows you to live comfortably. In house for sale in Lanzarote, at least, it is feasible for landlords to get wealthy while they sleep, as John Stuart Mill famously observed. This is likely one of the most significant factors to take into consideration when thinking about investing in real estate here.
1. Consistent source of rental revenue and high ROI
There is no seasonality in Lanzarote compared to the Spanish mainland or any other region of Europe, so if you are considering purchasing a home to rent to tourists, you may anticipate a consistent stream of revenue from rentals. The inventive disruption of Airbnb and other platforms like HomeAway has resulted in a significant demand for private flats and villas, with some properties experiencing occupancy rates of up to 95%. You can get a return on investment of between 6 and 15% because of point 2 and the ongoing revenue (depending on your property type and other factors).
2. Minimal initial outlay
Properties in Lanzarote are reasonably priced and accessible compared to other areas of Spain and even the Canary Islands. According to Lancelot, the average price per square meter in the Canary Islands is 1.665 euros (as of January 2020), however purchasing in Catalua would cost at least twice that amount (3.934 euros/m2). The average price of other Spanish islands, such the Balearic Islands, which also feature beautiful scenery and a vacation-like vibe, is 2.133€, which is significantly higher (and they are freezing in winter while people in the Canary Islands are still tanning at the beach!) Not to mention the cost of real estate in Wales and England, where the average price per square meter is 2.930 pounds, 19% higher than it was five years ago.
3. Climate: There are no seasons
The island is peaceful but never deserted because of the enormous demand for private vacation houses, the opportunity for visitors to enjoy sunshine and an exceptional climate, and other factors that have previously been stated. With an average temperature of 25°C and less than 10 days of rain each year, the island and its visitors experience what we refer to as the eternal spring. We do not experience the bitter cold or the oppressive heat that can occasionally be found in large cities in central Europe.