With demand, residential rents and rental yield all rising, I predict a busy year for the Las Palmas property market in 2017.
Foreign buyers, still a big part of demand, will compete with residential rental investors, holiday let investors, and with locals who find that mortgage repayments are cheaper than rent.
Here are my three big predictions for Las Palmas property in 2017 …
1. Las Palmas property prices will rise in high demand areas
Residential rental yields in the city are currently the highest in Spain at 7.1%. and demand for properties close to Las Canteras beach outstripped supply in 2016.
Add in the tourist rental boom and it’s almost inevitable that prices in popular areas of Las Palmas city will rise in 2017.
The Las Palmas property areas in highest demand are those within walking distance of Las Canteras beach; El Puerto, Guanarteme, Mesa y Lopez and even Alcaravaneras and the inland areas of La Isleta. Vegueta and Triana will also benefit as not everyone wants to be by the beach.
2. Prime tourist rental property prices will spike
2017 may well be the year when prime tourist rental property starts to break away from the rest of the Las Palmas market.
Short-term rental properties with high occupancy rates, good forward bookings and a valuable feature such as a terrace, balcony or sea view will be priced as businesses rather than residences.
Basically, if you want one, you’re going to have to factor in the potential profits when you make an offer.
Will this happen in 2017? I can’t be sure, but I’m convinced that it’s inevitable if tourist rental demand keeps going up.
3. The return of new-build Las Palmas property
2017 will also be the year when new-build property starts to come back onto the market. Developers, attracted by rising demand and low land prices, are snapping up locations all over the Port district. The cranes are back after a 10-year gap.
If you want to know what new-build property is coming onto the market, please get in touch.
Is 2017 a good time to buy a Las Palmas property?
In short, YES!
There’s no sign that the tourist boom in Las Palmas (and Gran Canaria in general) is going to fade anytime soon; competing winter destinations in North Africa are still out-of-action, the Spanish are starting to visit during the summer after a decade of staying at home, and the digital nomad and coworking scene is growing.
Demand for rental properties, both residential and touristic, is growing and there’s pent-up demand as locals look to buy property again. Spain’s banks, desperate for profit, are relaxing mortgage requirements (if not the paperwork needed to get one) and this should also feed demand.
There’s a lot of positive indicators for the Las Palmas market in 2017.
However, property prices in Las Palmas city are stable and haven’t really bounced off the post-crisis floor; average prices rose by just 2.73% in 2016.
Low prices, high rental demand and yield, and a booming tourist rental industry: Together they make 2017 an excellent year to buy a Las Palmas property.
Just make sure you get good local advice and buy a property that suits your needs.
Is 2017 a good year to sell a Las Palmas Property?
The era of lowball offers and falling prices is behind us, at least in the downtown areas of Las Palmas. Demand is rising and supply isn’t keeping up.
If you want to sell your Las Palmas apartment in 2017, you can expect it to go fast if it is priced realistically.
To make sure you get the maximum interest and therefore the highest price possible, make sure you market your property the right way. Here’s how to make sure that every estate agent in Las Palmas wants to sell your property.
I’m Laura Leyshon and I’m Las Palmas’ resident estate agent and property expect. I work with one of the city’s best estate agencies and I specialise in helping foreign buyers and sellers in Las Palmas. Please feel free to contact me at any time.