Over the last few years the British pound has been falling against the euro. Only a few years ago the pound was valued at 1.4 euros. October 2009 saw the pound fall to an all time low of 1.06 euros to one pound. This was having a very bad effect on how much a property in the Canaries would cost a UK resident buying in hard earned pounds.
For example a 100,000 euro property for sale in Puerto del Carmen would have cost, in October 2009, £94,000. Since Otober’s low the British pound has dramatically recovered peaking at 1.16 in February 2010.
These figures may not seem too dramatic but this movement in the pounds value would make that same 100,000 euro property cost £8000 less in just a three month period.
Many say that the pound resurgence in value has been due to heavy demands on the EEU to help suffering European countries.
If this trend continues it will go a long way to helping the Canary Island property market get back on its feet.
Prices are very low especially in the mid to upper ranges of property prices. An increase in British pound buying power would have a significant effect in these higher cost villas.
Recent problem with the Greek economy have led to rumors that again the European Union will have to put large sums of Euro to help out. This will again weaken the Euro thus in turn strengthening the British pound.
Only time will tell and as sure as recessions come around so do the prosperous times. Whenever in either period it seems like the will never end but inevitably they will.