FUERTEVENTURA

Fuerteventura is the second largest of the Canary Islands, ideally located just 100km off the North African coast with a wonderful warm climate, where temperatures rarely drop below 18ºc in the winter months. With incredible stretches of soft white sand and crystal clear turquoise sea, these are just a few reasons why so many European clients choose to purchase a property on this tranquil island. Winter sun is a huge attraction. I mainly focus on Corralejo,  a lovely old fishing village in the north of the island. Caleta De Fuste is nearer the airport but it is a purpose built resort and to me lacks the Canarian feel although we can arrange investments anywhere. Costa Calma in the south has lovely beaches and is predominantly German whereas Corralejo tends to be more of a favourite for Irish and English.

Who It Suits

• This is both capital appreciation opportunity and a passive income one. To get a passive income you would need to be buying a top class villa and doing holiday let’s as the season is all year around. Any property there will have steady capital appreciation as more and more retirees and second home owners buy here.
• People who wish to combine a holiday home with an investment opportunity. You can rent if not there week to week but as mentioned I recommend a villa for this. In Europe with only three months climate you will always want your home when others want it where the great thing here is there is sun all year around so that is not a concern.
• Developers / land investors who would buy sites and develop. I would focus on retirees if I were a developer.

The Pro’s

• Year around sun. No matter what property you buy in France / Spain / Italy you will not get great rents in winter so your potential earnings are limited. Here the winter is almost as busy as the summer and there is less competition for winter sun lodgers. In winter few destinations are within 4 hours of Ireland and the UK making the Canary Islands very popular.
• Neighbouring countries such as Lanzarote are still up to 30% more expensive for comparable properties.
• Mortgages are available which are loan to value so we have regular cases of people being able to borrow 90% of the purchase price.
• Direct flights from Ireland and the UK. Ryanair fly direct from Ireland from €100 return including taxes. It is the only Canary Island they go to currently.
• The island is beautiful and has large natural park area’s which will never be built on.

The Con’s

• Growth is steady and some people hear tales of people doubling their money in a year and expect that everywhere. Fuerteventura is not that type of market and growth will be steady year on year but with winter sun being so sparse I am confident that will be maintained.

Which Property Is For Me?

For an apartment for long term rents or personal use I would favour the area around Parque Natural in Corralejo. The developments such as Las Brisas, Las Vistas and Tres Islas are well spaced out and all apartments either have a garden (ground floor), a balcony (1st floor) or a roof terrace (penthouse). This gives lots of outdoor space to enjoy the weather and lots have great views down to the sea and over to the islands. Neighbours are friendly and there is a really nice community, a lot of whom live there full time. At the moment there is not much demand for short-term lettings here although I am sure this will come in time. Therefore for now you would have to decide whether to rent long term or keep for your own use. With pricing starting from circa €140 / €150k for large two bed’s this is good value. Allow 10% extra for closing costs.

If you are really interested in making larger rents and earning a passive income you need to invest in one of the top class villa’s on the island. I would recommend Parque Azul which is a stunning 5* development catering for every need. 3 bed, 3 bath villa’s are priced around €441k and are finished to a high standard. These come with a three year guaranteed rent of €18,000 per annum and it is easy after that to arrange further rentals through an agent. Some re-sales (as new) are available starting from €340k which is excellent value. Also there is a lovely development called Mirador De Lobos Golf which has an amateur golf course on site. This is great for families etc as you do not pay extra every time you play and it will not be opening to the public at all. The views from here are fantastic and the villa’s each come with private pool. Villa’s here start from €330k including pool.  Allow 10% for closing costs again in addition to the price.

Always bear in mind that buying what suits you ( but not the rental market ) is a risky business as your circumstances may change and you may wish to rent it out later.

If you have any enquiries regarding Fuerteventura or would like further information on developments in Fuerteventura or any other country, please contact us on 01-6275798 or catherine@makemerich.ie

THE FACT'S

LOCATION:  EASTERN CANARY ISLANDS

AREA:  1660 SQ KM'S

COASTLINE:  340 KM'S - ATLANTIC OCEAN

CAPITAL:  PUERTO DEL ROSARIO

CURRENCY:  EURO (€)

TIME ZONE:  GMT

POPULATION:  70,000

GOVERNMENT:  CONSTITUTIONAL MONARCHY (SPAIN)

RELIGION:  MAINLY CATHOLIC

OFFICIAL LANGUAGE:  SPANISH (ENGLISH SPOKEN)

  BAHIA AZUL - LUXURY VILLA'S

  MIRADOR DE LOBOS - VILLA'S & DUPLEX'S

  PARQUE NATURAL - APARTMENTS

CLICK ON PICTURES OR DEVELOPMENT TYPES ABOVE TO FIND OUT MORE ABOUT PROPERTY IN FUERTEVENTURA