Canary Islands: property review on whether or not to purchase real estate in the islands

Canary Islands: property review on whether or not to purchase real estate in the islands

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The Canary Islands: an overview/An overview of the Canary Islands

The sun-drenched Canary Islands have an exotic flavor of their own and act as both a haven and paradise to which thousands of visitors can flock to. This, of course, is mainly due to the many unique landscapes that never cease to amaze both foreigners and residents alike. What’s more, the Canaries has come to be known for its famous community of tourists where every foreign citizen is appreciated. So it’s this combination of friendliness coupled with the fine weather and excellent climate that makes more and more people come and visit, and in some instances even stay, in these incredibly exotic locations.

The Canary Islands is a Spanish archipelago in the Atlantic Ocean made up of seven islands, namely: Tenerife, Lanzarote, Gran Canaria, Fuerteventura, La Palma, La Gomera, and El Hierro. What’s more, each of these islands has unique sights to offer. So whether it’s admiring the stunning white shores of Fuerteventura or the extensively exquisite palm forests, there is something to offer for everyone. Furthermore, this Spanish region is a place for a healthy and peaceful lifestyle, as these islands afford one a go-slow, back-to-nature escape.

The major cities here, such as Las Palmas de Gran Canaria, Spain’s ninth-largest city with 380,000 locals, also provide tourism centers and all of the other necessary services. Plus, there are both modern and historical heritage sites to be explored here too. For instance, in San Cristóbal de La Laguna (Tenerife), there is a well-known UNESCO World heritage site.

The Canary Islands also boasts a high level of healthcare and education services, while enjoying a wide selection of art as well.

Healthcare

The University Hospital Nuestra Señora de Candelaria and the Health Service of the Canary Islands (SCS) are among the top 100 hospital centers in Spain, according to the Monitoring of Sanitary Reputation. In addition to this, 155 hospitals (114 public and 41 private) participated in this study, of which only 47 were awarded this prestigious position.

Education

There are 1,315 educational centers located all over the islands, namely, 543 in Tenerife, 516 in Gran Canaria, 82 in La Palma, 79 in Lanzarote, 63 in Fuerteventura, 20 in La Gomera, and 12 in El Hierro.

Additionally, according to the statement of the Board of Education, state prices for Canadian universities were reported to be the lowest throughout the whole of Spain, since it was found that a student pays an average of around702.60 euros per course and not 912 euros as was previously estimated.

Art

Each region of the island has its type of music. So to learn about the different types of music that each one has to offer, one can visit either the Temple House Museum, which is located in Teguise (Lanzarote), or the Nestor Alamo Museum, which is located in Gran Canaria.

The Canary Islands are a great place to tap into the creative scene on a local level, as it involves diverse forms of art. For instance, in addition to hosting popular musicians from around the world, such as the great tenor Alfredo Kraus or composer Teobaldo Power, art in the Canaries is also represented by other famous artists such as Cesar Manrique, Oscar Dominguez, Néstor Martín-Fernández de la Torre, and sculptor Martín Chirino.

Vacations

Carnival life is at the very heart of what a Canary Island vacation is all about. What’s more, since carnivals are usually a time for joy, color, rhythm, and dancing to fill the streets, these are considered to be the very essence of what drives island life too. Carnivals on the Canary Islands, especially Tenerife and Gran Canaria, are among the world's best vacation destinations and bring together lots of people from all over the world every year.

History

There are many places where you can learn about the history of the Canary Islands. For instance, there are sites from pioneers such as El Palo Rock, listed as a UNESCO World Heritage site, the Pinta Cave and Cenobio de Valerón in Gran Canaria, the archaeological ensemble of Belmaco in La Palma, and El Julan in El Hierro, an important archaeological heritage, as well as, the archaeological museums of La Gomera and Tenerife. In the latter, one can also be expected and surprised to find the Guanches mummies.

Fascinatingly, the Canary Islands played an essential part in the discovery of America and the voyages of Columbus. The geographical position and extraordinary conditions for navigation made this region and its many islands important ports, as this was where Christopher Columbus stopped on his way through the archipelago to the New World.

Canary Islands: property review on whether or not to purchase real estate in the islands

Advantages of purchasing real estate in the Canary Islands

When moving to the Canary Islands, one needs to examine various factors such as the climate of the region, the different leisure activities available, the overall quality of life, and the profitability of investing in such a place. So in this instance, when one considers how these aspects within the context of the Canary Islands specifically, then living in this region has several very distinct advantages.

Pleasant weather

One of these advantages is environmental and includes the climate. The Canaries have an average temperature of about 22ºC. Summers tend to be hot, while winters are mild. In addition, there is little precipitation here. Overall, the climate allows one to enjoy a variety of outdoor activities and entertainment all year round.

The ocean and the seashore

The Canaries are well-known for their variety of seashores and coves which many people make use of to relax. In addition to this, should one choose to be a bit more active and adventurous, one can also explore the seabed or engage in various water sports activities.

Nature

Another environmental advantage that the Canaries has to offer is its many hiking trails, volcanic sites/spots, natural pools, as well as, its exquisite forests, parks, and nature reserves.

What’s more, the Canaries are home to Spain's highest mountain peak (El Teide in Tenerife) and the Maspalomas Dunes (Gran Canaria).

Profitable investments

Having a house in a coastal area offers great profitability. Alternatively, renting a property during the year or for vacation periods can bring in additional income too.

Moreover, the Canary Islands are attractive to many people who want to get to know this region and enjoy its surf-friendly shores and activities. Especially, since there is interest not only at the national level but at the international level as well, as many foreigners choose to vacation in this region.

So on the one hand, having a house in the Canaries is a great long-term investment because it attracts many tourists from all over the world and offers a wide variety of rental options for them. On the other hand, though, most buyers in search of a second residence usually look for accommodation in coastal areas, as this gives them an excellent opportunity to sell the property at any time.

Additionally, this particular Spanish region also enjoys certain tax benefits. For instance, some imported goods can be purchased here for 10-30% cheaper than what it would usually cost in the rest of Spain.

Furthermore, the real estate tax here is 6.5%, which is a good purchase condition for investors.

The housing market in the Canary Islands

New real estate

The property sector in Las Palmas de Gran Canaria and Santa Cruz de Tenerife has grown in recent years. The construction of luxury housing, rentals, and investing in buildings for residential tourism, as well as, a favorable climate overall, are all contributing factors that provide (further) growth for this sector.

In addition to Las Palmas de Gran Canaria and Santa Cruz de Tenerife, there are also complimentary new real estate offers that are just as profitable (if not more) such as in Adeje (Tenerife), Puerto Rico (Gran Canaria), and Puerto Calero (Lanzarote).

Commercial premises and offices in the Canary Islands

Significant tax benefits and incentives that have been introduced in this region by national and European administrations in recent years have contributed to the growth in various areas of the real estate sector. What’s more, these areas have made high profits by setting up and establishing their headquarters in the Canary Islands.

Also, companies who are engaged in the retail trade and would like to be located near large settlements or in shopping centers will easily be able to find an ideal place to do their business here. Plus, if your business needs more storage space for goods, there are great real estate offers for both medium and large enterprises.

Housing opportunities for tourism in the Canary Islands

Tourism is a major sector of the economy in this region. This can be seen in the excellent real estate investment opportunities that this region has to offer in some of the most visited areas. So the real estate market focuses on residential tourism with investors looking for apartments in Los Cristianos, Las Americas in the south of Tenerife, or in Maspalomas, Puerto Rico, or Las Palmas in Gran Canaria.

The most ideal choice for luxury housing in the Canary Islands

There is a wide range of exclusive accommodation that one is available to choose from at any time on any of the islands. From the incredible scenery, relaxed lifestyle, even the protected residential complexes, to houses with gardens and swimming pools, all of it can be yours. Whatever your needs, it all comes together here in this enchanting place to make life here for you both convenient and relaxing. This way, you get to experience the best of both worlds at the same time.

The extravagance of the Canaries can be seen and experienced in the variety of luxury houses available on the real estate market. For instance, a house situated in the north of Tenerife consisting of a garden and a pool with a view of Teide or the Orotava Valley. Or, a villa that’s situated in Playa del Ingles or Maspalomas, south of Gran Canaria with a pool. Or, new apartments located next to the shore of Las Canteras offering striking up close and personal coastal views. Or even, farms located in La Palma, La Gomera, or El Hierro.

Canary Islands: property review on whether or not to purchase real estate in the islands

Real estate prices in the Canary Islands

In September 2021, residential properties were reported to have an average price of €2,091 per sq. m. with an increase of 4.76%, when compared to that of September 2020 (when it was reported to have an average price of 1,996 €/m2). So based on this real estate data, it’s quite obvious that the average real estate price in this region of the Canary Islands has peaked over the past two years.

Similarly, the price for renting residential housing in September 2021 was reportedly €10.30 per month per sq. m. with a decline of 4.10%, when compared to that of September 2020 (when the price of residential housing was reportedly €10.74 per month per sq. m.).

Additionally, in September 2021, the price of real estate on the islands was the highest in the province of Santa Cruz de Tenerife with a price of €2.165 per sq. m. While in contrast, the lowest price out of all the islands was recorded in Las Palmas at €1.946 per sq. m.

Furthermore, in that same month – September, the real estate rental price in the region was reported to be the highest in Las Palmas at €11.45 per month per sq. m. While in contrast, the lowest price was reported to be in the province of Santa Cruz de Tenerife at €9.20 per month per sq. m.

Property prices in the Canary Islands

Tenerife
TenerifePrice, €/m2 1st quarter of 2020Price, €/m2 1st quarter of 2021Changes, %
Adeje 1.974 1.844 -6,6%
Arona 1.614 1.647 2,0%
Candelaria 1.481 1.796 21,3%
Puerto de la Cruz 1.847 1.623 -12,1%
San Cristóbal de La Laguna 1.162 1.209 4,1%
Santa Cruz de Tenerife 1.322 1.330 0,6%
Granadilla de Abona N.D. 1.336 -
La Orotava N.D. 1.056 -
Tacoronte 1.274 1.208 -5,2%
Gran Canaria
Gran CanariaPrice, €/m2 1st quarter of 2020Price, €/m2 1st quarter of 2021Changes, %
Arucas 1.064 963 -9,5%
Las Palmas de Gran Canaria 1.483 1.475 -0,6%
Mogán 2.260 N.D. -
San Bartolomé de Tirajana 1.912 1.537 -19,6%
Telde 1.130 1.055 -6,6%
Fuerteventura
FuerteventuraPrice, €/m2 1st quarter of 2020Price, €/m2 1st quarter of 2021Changes, %
Antigua 1.263 1.246 -1,3%
Pájara 1.531 1.413 -7,7%
Puerto del Rosario 1.085 1.043 -3,9%
Tuineje 1.295 N.D. -
Lanzarote
LanzarotePrice, €/m2 1st quarter of 2020Price, €/m2 1st quarter of 2021Changes, %
Arrecife 1.311 1.360 3,7%
Teguise 1.630 1.883 15,5%
Tias 2.386 2.328 -2,4%
La Palma
La PalmaPrice, €/m2 1st quarter of 2020Price, €/m2 1st quarter of 2021Changes, %
La Palma 1.179 1.140 -3,4%
La Gomera, El Hierro
La Gomera, El HierroPrice, €/m2 1st quarter of 2020Price, €/m2 1st quarter of 2021Changes, %
La Gomera, El Hierro 1.214

Canary Islands: property review on whether or not to purchase real estate in the islands

Choose to purchase an apartment in the Canary Islands

Spain-Real.Estate will help you purchase the most ideal Spanish property, where you get to enjoy spending free time with your friends and live an idyllic life with your family as well. What’s more, our agency’s real estate experts have already prepared a variety of stunning housing offers for you, which are all available in Spain of course. We will guide you through the whole process advising you on the most suitable accommodation based on your personal preferences and budget. So as you can see, nothing is too small or big for us. We are always ready and available to offer you the necessary support you need, whether it includes helping with the documentation, financial assistance, after-sales service, or any other type of real estate transaction, we are there for you.

Don’t put off for tomorrow what you can do today! Reach out to us right now so that we can provide you with the best real estate proposal the Canary Islands has to offer.

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