At first glance it's difficult to see why a fall in the value of the £ against the Euro should cause a rush of enquiries and an increase in sales, however that's exactly what has been happening.

We are experiencing more and more clients seeking to protect the value of their currency by investing it in Euro property. As the £ has gradually slid from its high of 1.64 Euro/£ in March 2002 down to 1.25 in January 2008 (now back to 1.30) so property in Europe just got more expensive for UK buyers. Will it go back up, will it go down further, who knows, but once the market really gets into top gear again property prices will take another leap upwards.

Although the Tenerife property market has been subdued for some buyers during the UK financial crisis  (fuelled by US instability) other buyers, from the Balkan states predominantly, have been taking advantage of the lack of competition to snap up property bargains on the island. Tenerife has all the ingredients to attract property investors from all over the world and this is what keeps the property prices on Tenerife steadily rising.

One of our very serious investors who came to us in 2003 told us of his suspicion that the £ would be allowed to drift towards the value of the Euro so that the currencies could be linked by the back door, so to speak, without the need for the UK to adopt the Euro. Obviously, we can't comment on this theory, however the client is still with us and is very happy with the decisions made.

For all sorts of reasons, good property never stands still for long in Southern Tenerife. There are only a limited amount of good holiday apartments on the market and at the moment no more can be built since the government stopped issuing new planning licenses back in 2000. The land is ever increasing in value, especially below the main highway, and letting income is earned all year round in the south of the island. Our advice is always to act sooner rather than later as it will always cost more for waiting. It is always better to buy something small, just to get a foothold rather than keep saving up for a larger place, as the cost of Tenerife property tends to rise quicker than savings.

We are certainly pleased to see UK investors coming back into the market and we are here at Wady Properties to give all the advice and assistance that we can. There is no obligation, talk to us now and see if we can help to make your Tenerife dream a reality.