We at Gran Canaria Property believe that the worst is over and that house prices in Gran Canaria will soon be heading upwards again. The market is now good value and there are plenty of bargains available. If your dream is to live in Gran Canaria, now is the time to start looking.
You would say that wouldn’t you!
Our positive outlook is based on solid reasoning. Property prices in Gran Canaria have dropped since 2008 and are down around 40% from their peak. The crazy prices and expectations of the boom are long behind us and sanity has been restored to the market. With demand strong and prices low, prices can only rise over the long term.
Seven reasons why we think Gran Canaria property prices are going to increase:
Not enough houses: Unlike most areas in Spain, there is still a housing shortage in Gran Canaria. It’s a small island with a population of over 800,000 people and has large areas of protected or rural land that can’t be developed. There are large numbers of people here who need their own home and construction at the moment is minimal. This will inevitably push up Gran Canaria property prices.
Growing population: The Canary Islands are one of the three regions of Spain where the population is set to increase over the next decade. The Spanish National Institute of Statistics expects 25,000 people to move here in the next 10 years. This will drive demand for property and push up prices.
Tourism is booming: Buoyed by their strong currencies, British and Scandinavian tourists are flooding into Gran Canaria. The long Spanish recession has kept prices low and the euro down. Combined with low property prices this means that the island is becoming a cheap place to buy property and retire. An increasing number of foreigners are making the jump from tourist to resident: Over 2,700 foreigners bought a Canary Island property in the first two months of 2012 alone. See source article here.
High rental yields: The average rental yield in Las Palmas is the second highest in Spain at 4.7%. This compares to 3.4% for London and 4.1% for Barcelona. Prices are down by 40% from their peak but rental prices have hardly dropped due to the lack of homes. Prices are now so low that buy-to-let investors are coming back into the market. The right Gran Canaria property is now a great investment.
The booming port:Las Palmas’ container port is booming as trade between Europe, Africa and South America increases. The port authorities expect to double their container trade in the next few years. Las Palmas is the closest European port to most of Africa and is increasingly being used as a logistics and freight hub by businesses and aid organisations such as USAID and the World Health Organization. The Chinese want to use Las Palmas port as their main hub for trade with West Africa and there are strong rumours of huge investment.
Africa again: Foreign companies are using Gran Canaria as a base for mining and exploration in North Africa. It’s a much safer place to live with European living standards and no need for gated communities. People working in Africa prefer to have their families in Gran Canaria than in countries such as Mauritania. This is pushing up rental prices at the top end of Las Palmas’ property market and in the surrounding suburban areas.
Great place to live: Gran Canaria is a safe and friendly island with the best climate in the world. With property prices at a low, it is an attractive place to live with a great outdoor lifestyle. Why spend your retirement in the drizzle when you can live here by the beach?
Are you interested in property in Gran Canaria? Get in touch with us and let us know exactly what you are looking for. We are a specialist estate agency based in Gran Canaria and focus entirely on helping buyers through the process of finding and buying or renting the perfect property.