Property prices in Gran Canaria and the Canary Islands are rising steadily, according to Spanish Valuation Company Tinsa.
The Canary Islands property market in figures
Prices across the islands are up by 3.6% in the first three months of 2018 when compared to Q1 2017. This compares to a 15.5% rise in Madrid and a 10.5% rise in the Balearics. In Las Palmas province (Gran Canaria, Fuerteventura and Lanzarote) prices are up 4.5%. In Tenerife and the western Canary Islands, prices were up 2.1%.
As for Las Palmas de Gran Canaria city, prices rose by 2.7% in Q1, up by 6.3% over the last 12 months. However, average prices are still over 30% below their peak 10 years ago.
Mortgage figures in the Canary Islands
The average mortgage taken out in Q1 in the Canary Islands was 87,000 euros. Average monthly repayments were 445 euros.
In Las Palmas province, the percentage of family income that goes on mortgage repayments was a healthy 14.8%. This compares to 22.6% in the Balearics and 21.2% in Malaga.
The average time to sale for a Las Palmas province property is just 5 months. This is one of the fastest sales times in Spain.
What the Gran Canaria figures mean
The Q1 figures are positive as a slow, steady rise in property prices is by far the healthiest state for the Gran Canaria property market.
The low ratio of mortgage debt to income and fast sale time suggest that there is still plenty of room for growth.
As for the Gran Canaria economy, unemployment is still falling in Gran Canaria. Hotel occupancy levels are still healthy although the record 2017 tourist figures are unlikely to be repeated this year.
A combination of foreign buyers looking for holiday property, and locals taking advantage of low interest rates should keep the market ticking up this year.
More on the Las Palmas property market in 2018.
The Las Palmas property market
In Las Palmas city, the tourist rental boom is still happening and residential rental rates are increasing. Demand for property in desirable areas, like the Puerto District and Las Canteras beach, far exceeds the supply of property on the market. Buyers need to have everything prepared before they start to view.
Getting a Gran Canaria mortgage in 2018.
If you’re considering a tourist rental investment please bear in mind the huge recent spike in the number of new Airbnb apartments. So far, demand for holiday is keeping pace with the supply but there will be a correction at some point.
Read this article on how to future-proof your Las Palmas holiday rental.
I’d say that the best value property investment in Las Palmas right now is residential apartments well away from the Port District. Property prices here are much lower per square metre and residential rental yields are healthy.
The luxury Gran Canaria property market in 2018
The luxury property market across Spain picked up in 2017 although there are no specific figures for Gran Canaria.
However, the tourist boom over the past few years and increasing activity in Las Palmas’ port augur well for the high end of the market.
Laura Leyshon: Gran Canaria estate Agent
I’m Laura Leyshon and I’m a British estate agent working for RE/MAX Cony Overseas: One of Gran Canaria’s oldest and best-regarded estate agencies.
I help foreign buyers and sellers all over the island and am a Collection agent specialising in high-end Gran Canaria property.
I’m always available for a chat if you have any questions about property in Gran Canaria.