Tenerife New Developments
Tenerife New Developments
This is about New Developments in Tenerife.
In recent years sadly, new developments that were approaching completion or even only part built ended up in the hands of the financial institutions who lent to the developers. We have seen many repossessed properties come on to the market in batches as they are released onto the market by the banks. Many people have benefited by purchasing a relatively new property, which has never been lived in, at a knock down price. This applies to apartments, townhouses and villas.
Prior to the recession, many speculative investors paid large deposits on off plan property only to find that when it was time for completion, it was not worth doing so because of the decreased value of that Tenerife property. That was the largest reason why developers ceased trading because they were stuck with assets which they could not sell to repay the pending mortgages in full.
As of summer 2015, we are seeing some new developments of townhouses in the popular resort of Los Cristianos; many have been sold out quickly because they were attractive offers. Many developers accrued land bases though the good times and if they survived now is a good time to recoup some of the value those assets.
The only current Tenerife new developments seem to be tailored to suit a short supply of a particular type of property. Currently there is demand for townhouses and villas but few are constructed now compared to the days before the bubble burst.
Many people enjoy buying a new property which has not been pre-owned; also new properties tend to be more fashionable in terms of their design. Many people buy new cars for the same reason.
Tenerife new developments which are off plan have attracted property investors who have perhaps seen the advantages of making this type of investment. The idea is that the purchaser enters into an agreement to buy a completed property then pays a generous deposit and agreed stage payments through the build process.
For the purchaser, with off plan investment, the price is fixed at an early stage so there is the benefit of increased capital value during the construction stage which can be significant, perhaps as much as 20%. The Developer benefits from knowing that the property is sold and also has capital to construct the property which may otherwise have to be borrowed.
In the past, many off plan investors make money by selling concurrently with completion, thus avoiding paying the full price for the property. The investment gains can be significant and purchase taxes can be avoided.
Tenerife Off Plan Developments
Prior to the recession we were always interested in marketing a good range of Tenerife New Developments because they were popular with clients. Many new developments were not located centrally because the sites in the best locations have usually already been developed. However, that is not always the case because some property developers sit on land banks knowing that their profits are increasing all the time.
Please consult with us to let us know your requirements and we will update you with the latest price and availability for current and proposed developments.