Despite the recent property crisis in Spain, Tenerife’s property sales are still rising. Reports that the housing bubble in Spain has burst have led to an increase in property sales elsewhere around the mainland. Tenerife, fortunate to have all year round perfect weather, is well placed to cater for the large number of people from the UK wishing to purchase somewhere in the sun. Tenerife must be viewed as a ‘micro-market’, operating within the larger Spanish economy but independent to factors affecting a crash from the Spanish market.

The property boom in the Costas looks to slow due to an over supply of property, corruption scandals and land grab issues, diminishing the confidence of the buyer.

In 2001 the Tenerife government voted a moratorium on new touristic building, limiting the supply of new homes thus preventing over building. Despite the restricted supply, with no artificial media frenzy similar to that incited on the Costas, price rises were more moderate.

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