Well we are now approaching the end of the first quarter of 2012 and things seem to have improved a little, the only thing which has really changed is as a result of the law enforcement deterring holiday letting on complexes which do not have a Touristic License. We are seeing property values falling on such complexes and we predict that trend will continue, why? Owners are now very scared due to the high fines imposed for illegal holiday letting. If these fines continue to be levied, no doubt it will continue to affect the Tenerife Property market due to the high volume of holiday homes. The only saving grace is that demand to long term rentals remains high for the time being. I would also mention that many tourists visiting Tenerife are now opting for all inclusive holiday packages, recently some of the major tour operators decided only to offer all inclusive packages at great prices. If that trend continues demand for self catering holiday accommodation may continue to wane. Whether this will seriously affect the property market remains to be gauged. The important thing in the Tenerife property market is awareness and we are finding that potential property buyers are getting well clued up before they commit to a property purchase. There are some very good buys at the moment, especially in the residential areas as Andy predicted.

Hi Andy, Always a pleasure to hear from you. I look forward to seeing the update to your green shoots article. I bet it will be an eye-opener.

I dont see any light at the end of this particular tunnel. Prices are still falling and will continue for at least another 12 months. I wrote an article about Tenerife property prices last summer saying the exact same thing when many agents were "seeing green shoots" I am due to update that article for the next 12 months. We have had a busy year with plenty of sales so far but thats because we have manged to get a lot of very well priced property on our books. There are simply no reasons why prices would stabilise or rise from where they are today. My opinion is that the hardest hit will be residential areas (Roque del Conde, Las Chafiras, El Madronal, Adeje town, San Eugenio alto - everywhere outside of the tourist zones on the higher side of the motorway) and they are going to be hit hard. I would guess at least 10% of current prices (thats sales prices) over the next 12 months. Its a good time for buyers to keep an eye on the market and wait for the right opportunities, there will be plenty more to come.

Hi, My name is Montse from www.ventadepisos.com, a Spanish Real estate portal, I would like to contact with Etenerife.com.

I would say that the property market is doing better at either end of the spectrum. The cheap end of the market and the expensive end are both on an upswing while the middle band, where most people need a mortgage, is standing still. We are receiving more Tenerife property rental enquiries, especially from people wanting to rent before they buy.