Las Palmas de Gran Canaria’s fast urban bus system, dubbed the MetroGuagua, should make travel across the city much faster once it is running in 2021. [Read more…]
Las Palmas property prices rose by 4.6% in February 2016 compared to 2015, according to Spanish property portal Fotocasa. As you can see from the chart below, prices in the city are on a gradual upward trend.
This is due to two main factors.
Why Las Palmas property prices are rising
- A recovery in the local economy that is bringing Canarian buyers back into the property market. Tourism is booming in Gran Canaria and lots of people live in the city but work in the resorts. The local banks are starting to lend again which is giving the market some oxygen.
An increase in demand for Las Palmas property amongst foreign buyers. As more people visit Las Palmas on cruise ships and on city break holidays, more decide that it’s the place to own a Gran Canaria property.
However, we do need to keep the price rises in perspective; Property in Las Palmas is still fantastic value if you compare today’s prices with those from before the crisis.
This chart shows the change in property value per square metre in Las Palmas since 2005.
Las Palmas property in 2016
What this means to buyers is that the Las Palmas property market has now found its floor and is starting to rise due to higher demand. Prices are rising but still represent historical levels of value.
Combined with the huge demand for rental property in Las Palmas, I can say that now is an excellent time to buy a Las Palmas property as a holiday home, residence or rental investment.
As always, I’m here to answer any questions you have about Las Palmas city and its property market.
See more Las Palmas property stats on the Fotocasa website.
Property prices in the Canary Islands rose by 0.2% in the last three months of 2015, according to Spanish property valuation company Tinsa.
Prices in the Las Palmas province, which includes Gran Canaria, Fuerteventura and Lanzarote, rose by 0.4%.
Overall, prices rose by 2% across Spain, although they are still falling in many areas of the country. Madrid (3.3%) and Catalunya (5.3%) saw the largest price rises while the Balearic islands also saw above average rises (2.7%). In contrast, prices in Navarra fell by 8.5% and prices in Murcia fell by 4.3%.
The variation across Spain reflects what is happening in Gran Canaria. Prices in high demand areas, such as popular tourist hotspots in south Gran Canaria and the beachfront zones of Las Palmas, are stable or rising slowly. Property prices in residential areas away from the coast, and areas that still have lots of empty new-build property, remain stable or continue to fall.
In another positive signs for the Spanish property market, the average time needed to sell a property in Spain has, according to Tinsa, dropped from 10.6 to 10.2 months
Tinsa predicts that prices will continue to rise on average in 2016, and that even areas with falling prices will see smaller drops.
Tinsa stats for 2015 Spain property prices are highly regarded in Spain as they are independent. As a company, it carries out property valuations for Spanish banks and property owners.
The Las Canteras beachfront is Gran Canaria’s most popular and expensive property area and front-line prices start at around 3500-4000 euros per square metre.
Demand from local, Spanish and foreign buyers is high and supply is tight; Good properties on the beachfront don’t come up often and sell fast.
Prices start at 3500 euros per square metre for a property with a beach view but little or no outside space and worked needed to bring it up to modern standards. Apartments and penthouses with large terraces or balconies command a premium, as do apartments with large bedrooms.
However, since you are paying a premium for the view, smaller beachfront properties tend to be more expensive per square metre than the base 3500 euros per square metre.
The truth is that demand is so high and supply so limited (nobody seems to want to sell their beachfront Las Canteras property) that pricing depends largely on the specs and quality of each property. Factors such as parking, lift, outside space, bedroom size, layout, terrace specs, etc. all affect the final price.
The recent increase in legal holiday rental properties on and around the beachfront has also affected the supply of Las Canteras property.
Given the limited supply and complexities of front-line pricing, we’d advise everyone looking for a Las Canteras property to use a quality estate agent of property finder. We walk the beachfront every week looking for new property signs, know most of the doormen, and monitor a dozen Spanish portals so we know virtually all of the front-line properties on the market.
If you want to own a property on the beachfront, please let us know what you’re looking for and we’ll send you the list of the latest properties on the market.
Property prices across the Canary Islands rose by 2.3% year-on-year in the third quarter of 2015. However, most of the rise was in the Santa Cruz de Tenerife province of the Canaries, with prices in Las Palmas province (Gran Canaria, Lanzarote and Fuerteventura) rising by just 0.3%.
Overall, prices in Spain fell 0.8% year-on-year during Q3, rising only in the Canaries, Balearics, Madrid and Barcelona.
The figures come from Spanish property valuation company Tinsa and show a Spanish property market with huge regional variations. They broadly reflect what we are seeing in Gran Canaria and Las Palmas. Demand for quality property is high and prices are stable and even starting to rise amongst the most popular property types (such as one-and-two bedroom flats in good locations).
For buyers interested in Las Palmas property, the stats are positive. There are excellent value properties on the market, but it is important to choose the right area and property type and to use a local estate agent that can give you an accurate market valuation of any property you view.
See our Las Palmas Property Area Guide for a detailed overview of the city’s most popular places to buy.