The Lanzarote property market has long been driven by the engine room of Puerto del Carmen - the islands largest resort.

As this is where tourism first took off back in the 1970's, transforming a small fishing village called La Tinosa into the most popular destination on the island.

And now Puerto del Carmen is undergoing a major facelift - as the local authorities are pressing ahead with a multi million euro project that is designed to improve and develop the resorts infrastructure. A scheme that is expected to impact positively upon both visitor numbers and the price of property for sale in Puerto del Carmen over the long term - despite the current economic climate.

The number of English owned estate agencies in Puerto del Carmen stands testimony to the resorts popularity with overseas investors. With many buyers attracted by the buoyant, year round tourist market - which in turn generates a steady stream of demand and income for owners of holiday villas and apartments.

Puerto del Carmen is also the epicentre of the British and Irish expatriate communities on Lanzarote. Officially numbering some 6,000 plus citizens but unofficially thought to be much higher as many emigres don't immediately register for residency on the island. So demand for relocation property, long term rentals and commercial premises has traditionally been high here too.

Despite (or because of) its popularity with holiday makers Puerto del Carmen has been showing signs of wear and tear for some time. With the main 6km strip of bars and restaurants along the main sea front strip in particular attracting criticism on the grounds that the kaleidoscope of neon signs and cramped pavement space makes Puerto del Carmen seem outdated by comparison with other resorts and destinations.

As a result the local authorities now aim to "reinvent" tourism in the resort. By improving both the infrastructure and the standard of accommodations offered by apartment complexes. With the overall aim of ensuring that Puerto del Carmen is able to compete on a more equal footing with other popular tourist destinations.

This multi million euro redevelopment project involves the part pedestrianisation of the main Avenida de las Playas and the harmonising of shop fronts and fascias.

But perhaps the most ambitious element of the project are the plans to transform the existing Old Town harbour area into an upmarket marina with moorings for luxury yachts. An initiative that is likely to attract more affluent tourists to the resort whilst also providing competition for the hugely successful marina at Puerto Calero, located just a few miles south along the coastline.

The construction the islands second golf course just on the outskirts of the resort is also now close to completion. As a result the long term viability of Puerto del Carmen as a hotspot for overseas investment appears relatively bright. Despite the shorter term economic turbulence expected over the coming year.

For more information click here