The Canary Islands Spain Property Market 2022

If you are thinking about buying or selling a property in the Canary Islands Spain here is some useful information. There are eight islands in the Canary Islands archipelago, with the most active real estate markets being on Tenerife, Gran Canaria, and Lanzarote.

However, compared to other parts of the world, it represents a modest portion of the total global market. About 7.2% of the world’s exports were from the Canary Islands in the first six months of 2021. The Comunidad Valenciana, on the other hand, accounted for just 24% of this market throughout the same period.

In spite of this, the Canary Islands’ property market was thriving before the virus struck. Since 2010/11, the number of international homebuyers has steadily increased, reaching in 2018. The Canary Islands, like many other places that attract international purchasers, had a decrease in foreign buyers in 2019 of 18 percent. The weak GBP and Brexit may have played a role in the Canary Islands’ recent surge in international purchasers. Despite this, the first half-year numbers for 2021 indicate 3,423 foreign purchases, a 3.8 percent decrease from the second half of 2019.

It’s impossible to tell exactly how many foreign customers disappeared between March 2020 and June 2021 as a result of the travel bans and lockdowns that were in place. Pre-pandemic data suggests, however, that around 3,000 foreign purchasers who planned to purchase a house in the Canary Islands between March 2020 and June 2021 instead opted out. That we’ve already seen a return to nearly 2019 levels in 2021 is a positive indicator for 2022.

 

The Origin of the Numbers

Counts of transactions by nationality, autonomous areas, and prices per square metre are also available from the Notaries. These are released every six months. When do we receive Q1 and Q2? In November of the year in which they’re released, and when do we get Q3 and Q4? Consequently, the whole picture of 2021 will not be available until May 2022. Even so, what we’ve got thus far is encouraging. Despite this, I believe the data on the Canary Islands’ offshore property market is at best incomplete when compared to the figures we use in previous publications. This is owing to the fact that the Notaries do not divide the islands into different territories. They treat the Canary Islands as a single entity for the purposes of calculating the total number of foreign purchasers during that time period. Gran Canaria and Tenerife are the only two islands included in the breakdown provided by the Ministry of Development. We can still learn something from the numbers despite these two flaws.

 

To where the action is taking place.

As can be seen from an examination of annual data, Gran Canaria and Tenerife are the most popular Canary Island destinations for those looking to buy an abroad property. Using the Ministry of Development’s total for Gran Canaria and Tenerife in 2021, we observe that 96 percent of international purchasers picked the two islands in that period. It’s a fairly even split between Tenerife and Gran Canaria, with 53 percent of purchases coming from the former and 47 percent from the latter. As a result, the dominance of these two islands in the entire property market of the Canary Islands may be gauged from this snapshot.

 

Extending Your Business to Other Countries

Over the first six months of 2021, foreign purchasers accounted for 15.4 percent of Spain’s total property market. However, the market share was far larger in several of the places most popular with international purchasers. The Canary Islands were one of the places where foreign purchasers accounted for 31.9% of the market.. Only in the Balearic Islands does Spain have a larger percentage of the foreign market share than this.

 

Purchasing Power Abroad

Only in the Canary Islands do foreign purchasers account for more of the market share, but they also spend more. Foreign purchasers spent an average of €1,863 per square metre in 2021, according to Notary statistics. This is less than the national average of €1,481 per month. There was a 24 percent increase in spending in the Canary Islands over the national average and a greater increase than in Andaluca and Comunidad Valencia combined on the mainland.

 

What’s in store for us in the future?

It’s our opinion that demand from international customers held up exceptionally well in 2021’s first half. Even while some potential buyers may have put their plans to buy a house in Spain on hold, others have informed us that they want to move through with their purchase. They’re eager to get started. Even if new buyers enter the market at normal levels in 2022, we expect a good year ahead if a considerable proportion of the absent purchasers during the worst of the pandemic limitations return to the market. In a few months, we’ll have the whole year-end 2021 numbers on the Canary Islands real estate market for 2022.

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