Under the above set of premises the prices of properties in the Canary islands at the onset of the recession did not move. The supply increased the demand dropped but urgency was not an issue. Owners had an economic buffer zone. Now we are well into the slow down and money is tight not just overseas but at home things are changing. The urgency factor is starting to kick in. Owners that could afford to just pay a small mortgage or receive no income when their apartment in Lanzarote was empty do not have the same financial luxury. Money is tight and all assets need to be utilised to their fullest.

Mid way through the recession many properties were tentatively put on the market at ideal prices. As difficulties ground on that apartment for sale in Puerto del Carmen had to have its price lowered. Things got no better, urgency increased and prices continued to lower. Demand was at an all time low, supply was through the ceiling and urgency was right there with it. Market forces were in place and the amount of money property in Lanzarote could once fetch was a thing of the past.

The current market has now shown improvements. Confidence is settling back in and tourist numbers are rising, especially on the back of problems in other destinations.

As always economies cycle. The rise and fall and sometimes even plummet.  Trends show rises are slower than the falls and every recession hears cries of the end of the world is here. Things always recover and that is what they are doing now. Nothing new. Life goes on and the good times will return again.

In the current economic climate the most active section of this property market is occurring at the lower end of the price bracket. Most buyers are looking for an apartment for sale in Puerto del Carmen.

The prices of apartments for sale in Puerto del Carmen currently start at around the 65,000 euro mark or £52,000. For this you can buy a studio apartment on a complex with a pool in close proximity to the local beaches and amenities.

The average price of an apartment in Puerto del Carmen is currently 173,963 euros

Last year in 2007 the average price was 164,063

Two years ago in 2006 the average price was 162,520

(figure taken from freedom4sale.com)

This shows that although there is a slowing down of price increase at the moment prices have not fallen below previous years prices. Anecdotal evidence is saying that prices are better insulated as most properties are second homes or investment properties and the money tied up in the property is not so urgently needed therefore resale prices do not fluctuate so easily.