Billyboy,

The good news is that property prices in Tenerife are due to fall by 30% in 2009. It ain't good news for those of us who bought in the past year.

Leprosy
As long as you don't plan to sell next year I wouldn't worry too much. It will still be a good investment in the long run

I was looking at buying a property in Tenerife a couple of years ago, but decided against it.

What has come to mind, is that with the terrible exchange rate now, it must be more expensive for those people who have mortgages for Tenerife property, but live in the UK? Would this have increase mortgages by around 30%!

Fortunately for the property owners in Tenerife and especially those wanting to sell the prices has so far not dropped as much as they have in mainland Spain. We get a lot of reports from the mainland that showing 30% reductions, but Tenerife is hanging in there around the 10-15% at the moment. We would expect this to be partly due to the year round weather attacting people here, plus the amount of different nationalities that visit and also a lot of people that own property in Tenerife has bought it outright as a winter or retirement home so often they don't have a mortgage to pay for and for those wanting to sell they don't need to sell quickly. The English market is extremely slow at the moment, but instead we are getting interest from Belgium, France, Russia, Poland, Lituania and Scandinavia.