The Canary Islands continue to lead the Spanish property market recovery, according to several sets of new figures.
The Spanish Institute of Statistics (INE) announced that sales of second-hand properties in the Canary Islands were higher than before the crisis. In June this year, 1620 second-hand properties sold on the archipelago, 16.5% more than in June 2007.
That said, the new-build market hasn’t recovered. The number of new properties sold in the Canary Islands in June was 64,6% below the level in June 2007.
However, building work is starting up again in Las Palmas so I expect more new-build properties to come onto the market within the next 18 months.
Canary Islands roperty prices rose by 1.7% year-on-year in July, according to property valuation company TINSA. It was the largest rise in Spain (along with the Balearic Islands) and compares to an average rise of just 0.3%.
Strong evidence that the Canarian property market is back to health comes from the rate of new mortgages granted by local banks; Up 30.7% year-on-year in May 2016.
The INE reports that banks lent 79,9 million euros in May, up 19.7% on last year.
The Canary Islands expect to receive 14 million tourists for the first time ever in 2016; a boom caused partly by problems in competing destinations like Egypt, Tunisia, and Turkey.
With new hotels planned and unemployment going down (albeit from high levels), the Canarian economy is starting to do well. One effect has been an increase in property purchases.
The Canary Islands property market is looking healthy at the moment. Demand is increasing but so is the supply; rising prices mean that owners that just refused to sell during the crisis are coming back into the market.
All in all, it’s an excellent time to buy or sell a property in Gran Canaria and the Canary Islands. Contact me if you have any questions.