Do you think Tenerife has a long or short term future?

Funky · 10th July 2007, 22:25

Having spoken to various estate agents and business owners within Tenerife lately, there seems to be a real mixed feeling about the economy, the property market and tourism.

Some say that the property market is dead for the forseeable future, and that many estate agents are struggling to shift the huge number of properties on their books.

Many bar and restaurant owners say that whilst tourist numbers appear to be good, competition is tight, and few tourists are spending the sort of cash they did in recent years. Some are blaming the increase in all-inclusive hotels for this trend.

Overall, many people feel that Spain has become overpriced and can no longer compete with more exotic far-flung destinations, particularly those based on the weak US Dollar.

What are your views on these issues?

hopper · 10th July 2007, 22:58

I think the $ economy is very important at the moment, with almost $2/£ any destination that uses the $ is very tempting to the British tourist.

Disneyland Florida is almost cheaper to visit that EuroDisney for the average British tourist.

On a similar theme - I had this conversation with my Father today, I honestly beleive its about time that the UK joined the euro, OK mostly from a selfish point of view - having a property in Tenerife it would make life easier BUT also on a professional level. I deal with many European based suppliers annd I get a complete 'stuffing' on the exchange rate from my suppliers and my bank. But that's a different thread!

Funky · 10th July 2007, 23:07

Quote:

Originally Posted by hopper

I think the $ economy is very important at the moment, with almost $2/£ any destination that uses the $ is very tempting to the British tourist.

Disneyland Florida is almost cheaper to visit that EuroDisney for the average British tourist.

On a similar theme - I had this conversation with my Father today, I honestly beleive its about time that the UK joined the euro, OK mostly from a selfish point of view - having a property in Tenerife it would make life easier BUT also on a professional level. I deal with many European based suppliers annd I get a complete 'stuffing' on the exchange rate from my suppliers and my bank. But that's a different thread!

I agree that being part of the Euro would be easier for those of us who visit the island regularly, but I think overall it has caused more problems than benefits.

However, I have a Euro account and regularly travel to other countries within the Eurozone, and amazingly, they still manage to stiff me on the bank charges. They can't obviously do it on cash itself, so they stiff you on cashpoint charges, credit and debit card foreign use surcharges etc etc. Unless you physically carry a stack of Euros from your own local bank, you're going to get stiffed in other countries either way.

But did anyone honestly expect the banks to give up their massive profit from foreign transactions just because the Euro arrived?

hopper · 10th July 2007, 23:36

Quote:

Originally Posted by Funky

But did anyone honestly expect the banks to give up their massive profit from foreign transactions just because the Euro arrived?

Not really but its also the shops and suppliers that stuff you. In the UK now, many of the goods (in the multiples) are priced in Euros and Sterling, in many cases, the exchange rate is diabolical!

My wife once bought a couple of suits for work in a French owned multiple store in the UK, on looking at the ticket price it was obvious that they were taking the p*ss on the exchange rate, we asked if we could pay in euos but they wouldn't allow it!

When I ask the UK agents who represent many of my European suppliers in the UK if I can pay in Euros they say no even thought the original invoice is in Euro's, I then have to telephone them and they calculate the exchange rate (as they see fit!) when the payment date is due. Its cazy!

Janet · 11th July 2007, 00:25

The problem is often that the property market is only seen from one perspective ... that of the British buyer/owner. Yes, there is clearly a problem at the moment, but it was high time there was a weeding out of estate agents ... it hasn't happened like this for around 20 years. BUT the market isn't dead, it's just struggling, and it's being kept going by buyers from other countries. The Germans and eastern Europeans, for example, along with the Spanish mainlanders, are buying plenty right now.

So, English estate agents are struggling, and since most British owners place their properties with them, and they have no buyers, there appears to be a property crash. But this is only part of the picture.

Tenerife's "British" property market will recover, and when it does, it will be apparent that little else has changed. What will help this, in my opinion, is the growing realization that buying elsewhere (only one of the reasons why Brits aren't buying here right now) is not problem free. Bulgaria for example only has anything like a year round season in the ski resorts ... not the best thing if you're looking for a sunny holiday home. And the country has huge infrastructure, and corruption, problems to deal with, as noted by the EU when it was granted entry.

And as for Turkey. Turkey has been touted for years as the best place for cheap properties and expensive profits, but politically it is far from a sure bet. Just look what has been happening, and is happening, there right now. I would not be at all surprised if Turkey wasn't a fully Muslim country within 5 years (I'm speaking constitutionally, because it is currently secular in this respect, despite the overwhelming Muslim faith of its inhabitants). I would not want to own there myself.

People who are buying elsewhere will come back to Tenerife, and by the time they do, hopefully the British economy will have recovered a bit too. So, no, I don't think Tenerife has a short term future. I think it has a short term problem.

Fred Perry · 11th July 2007, 11:13

The authorities don´t help themselves. I went for a walk through L.A. yesterday and in places it is filthy. Ok alot of work going on at the moment to improve walkway etc. which will be very nice but if they don´t clear up the night before´s mess it will still look bad.

Have you seen the pavement stretch (about 50 meters) between Starco and the bars at the top part? It is literally black with dirt (spilt drinks etc) and it is sticky on foot.
It´s probably a case of the council saying it is not their bit to clean and the community of Starco not wanting to know.

Sunny 1 · 11th July 2007, 11:32

My brother is buying a property currently, also a friend is just going through the mortgage bank valuation, my friend has just been told that the property is worth 60k euros less than the current owner paid for it 3 years ago!

IMO the price is reasonable not over inflated by anyone, so when she questioned this decision this was the answer. ..... For so long prices have risen here, valuations have been over inflated & now there is a big clamp down on this, by the banks, town halls etc. so now the valuers are very worried about over valuing a property & being answerable to the previously mentioned, also with a possible threat of investigation/prosecution.
So even though the property was reasonably priced, not inflated, what the valuer says, goes, so really there is a downward turn for property here until it is corrected. Also look how many people have been sold property here with a view to letting either holiday/long let, there are so many empty places now there is a glut of them & still we see further development. After all this is only a small island, how much more can they carry on?, 'til the politians/councillors get caught with their pants down & there hands in the till ?!!!

I'll get my coat !

Silicon Beach · 11th July 2007, 12:46

looking at this thread from the perspective of someone who has just sold a house in the UK and will probably be looking for a place to buy in Tenerife in six months or so, I'm feeling a bit of a

coming on ...

smug git ? nope, not clever enough for that ... our timing was random / arbitrary, but seemingly fortuitous ... what with the interest rate rises and predictions of gloom and doom in the UK market it seems like we sold up just in time ... and looking at the amount of property for sale in Tenerife, you can't help feeling that there is indeed too much supply - and judging from how long some (over priced ?) properties have been on some websites, it would seem not enough demand.

I'm also beginning to notice some prices dropping ... but it's not a general thing, so similar properties in the same area (or even in the same complex) are being advertised at rather different prices, presumably down to how quickly the seller needs a sale.

It is giving me the feeling though that there will be some bargains to be had next year

C.I.M · 11th July 2007, 13:45

I have no worries about the future of the housing market here.
As mentioned previously, it will most likely sort the wheat from the chaff amongst the estate agents.
The the two most prevalent businesses here are estate agents and bars. Hopefully a solid reputation will stand the better estate agents in good stead whilst those with poorer reputations, higher fees and questionable ethics will fall to the bottom.
Good for buyers, sellers and the better agents.

As for bars, there are simply too many which fail to stand out from the crowd. if there´s nothing special about a bar - why will anybody other than regulars visit?

I was reading a newspaper only yesterday and saw a picture of a lighthouse shaped bar, it was colourfully lit and certainly looks very different from everything else. Immediately liked this and if I could remember where it was! I would go and spend money there.
If there service was good and their prices reasonable I would visit again and again.
Supply and demand and survival of the fittest on both counts.

SparkyBear · 21st July 2007, 11:42

Hi guys,

just another flying visit.....

All I have heard for past few weeks are poeple telling stories of Tenerifes "demise". They point to lack of tourists, high flight prices, over building etc etc. For past couple of months those kind of thoughts have been entering my own head too. However, I have only been here for 18 months now so dont have much to compare the present situation with.

Aside from people "tittle tattle" I must admit to seeing things that back it up.... Flights being cancelled because of lack of bookings, businesses closing down etc.

I am going through one of those downers you get in Tenerife every now and again, so I may be looking at things through dark coloured specs.

I would be interested in everyones oww thoughts...

G