A new study by TINSA (Spain’s largest property valuation firm) has compared the Canarian and Balearic property markets. Here’s a summary of what it said, and some interesting facts about the Canary Islands and Gran Canaria property market.
Same same but different: Islands in the sun
The property market in the Canary Islands and the Balearics has rebounded faster than most places in mainland Spain. This is to be expected as they have limited space and property and large numbers of visitors. The TINSA comparison highlights the importance of foreign demand; 35.6% of property purchases in the Balearics were by foreign buyers. The equivalent figure for the Canary Islands was 28.1%.
Overall, the Canarian property market is cheaper than the Balearic Islands. Property in Ibiza and Formentera costs an average of €2.758 per square metre while it is just €1.061/m in Fuerteventura and €1.383/m in Lanzarote. The average price in Gran Canaria in 2015 was €1156/m.
The proportion of luxury properties (over €400k) is much higher in the Balearic Islands at 17% than in the Canaries at 3%. Cheap property (under €100k) accounts for 39% of the Canarian market but just 17% in the Balearics.
Property in the Canary Islands takes an average of seven months to sell while in the Balearics it is 10.7 months. The cost of a property purchase in the Canaries accounts for 17.1% of average family income in the Canary Islands but 29% in the Balearics.
New build activity is hotting up in the Balearics and especially in coastal areas where 1053 permits were issued in 2015 (up 50%). Things in the Canaries are slower with just 701 new build permits in coastal areas (392 of them from Tenerife)
10,527 properties changed hands in Gran Canaria in 2015; the highest figure for any Spanish island.
The Gran Canaria property market
This comparison underlines the steady progress of the Gran Canaria & Canary Islands property market. We’ve now touched bottom (and bobbled along it for a few years) and are starting to see a rising demand and prices. However, I’m glad to say that we’re not seeing any signs of fast price rises or speculation. The local banks are still being cautious about lending and buyers are price conscious.
It may not be as exciting as the market before 2007 but it’s definitely healthier in the long run.
The Las Palmas property market
In Las Palmas, demand is strong in areas that are attractive to foreign buyers (a big chunk of the market) such as the Las Canteras beachfront, the Port District and old town Vegueta and Triana.
With the holiday let market booming, property prices on the beachfront and in nearby areas are rising faster than the average. If this continues, it won’t be long before flats with tourist rental potential start to sell at a premium to residential property.
I’m Laura Leyshon and I specialise in helping foreign buyers to buy and sell property in Las Palmas de Gran Canaria city. If you’re interested in Las Palmas property, contact me for a chat at any time.