Lanzarote´s popularity as an overseas property investment hot spot shows little sign of abating. Despite the recent downturn in the UK property market and the upsurge in interest rates.

[1] Lanzarote Investment property still attracts a great deal of interest from both UK and Irish based buyers. Thanks largely to the islands on-going popularity as a year round holiday destination. Attracting over one million British and Irish visitors alone in 2006.

Where tourism leads, property investment tends to follow. As these sorts of visitor numbers provide a ready-made market, twelve months of the year. Which cannot be said for other mainland Spanish holiday destinations or emerging markets such as Eastern Europe.

The returns for overseas investors are also more appealing. As [2] Lanzarote Holiday Villas command excellent rental returns. So enabling most owners to more than cover their mortgage costs whilst also enjoying a pretty healthy additional income.

Capital growth is also running at around 9% currently on Lanzarote. Which means overseas investors will also enjoy a significant rise in the value of their property over time.

Unsurprisingly, the main resorts attract the most interest from overseas investors.

With Playa Blanca often offering excellent value for money for those seeking a basic villa with pool, whilst Puerto del Carmen is geared more towards studios and apartments.

Property prices across the island are still low in relation to other parts of Spain – so some leading industry observers such as Mark Stucklin of the Sunday Times still feel that Lanzarote offers plenty of room for price growth.

The market here is also fuelled by a growing expatriate community. With sun starved Northern Europeans now making up an estimated 10% of the islands overall population. And emigration from the UK looks set to keep rising – as more and more Brits head for the sun in search of a better quality of life.