The Canary Islands continue to lead in terms of home sales in Spain

The Canary Islands continue to lead in terms of home sales in Spain

The beginning of 2022 for the Canary Islands was marked by a significant increase in the number of real estate transactions. Having shown impressive growth results of 55% and 43% respectively in the first two months, the region was not so far from the most active and successful autonomous community of Spain — the Balearic Islands. March picked up the established trend, continued it in the same spirit and turned the Canary Islands into the region with the highest annual sales increase in all of Spain.

In particular, in March, the growth in housing sales amounted to 44.9%, if we rely on the data of the General Council of Notaries of Spain. Having shown annual growth of 66.8% and 44% respectively in January and February 2022, the Balearic Islands fell sharply in these indicators in the third month of the year. Sales decreased by almost half (21.3%) from the results of February. At the same time, we have seen a strengthening of the growth of the real estate sector in the Canary Islands.

Historically significant results

In total, in the first three months of 2022, more than 6,700 real estate transactions were made in the Canary Islands - almost a third of the number of transactions concluded for the whole of 2021. Last year brought 21,695 sales operations to the region, which is 27.4% more than in 2020.

At the height of COVID-19 in 2020, there was the sharpest drop in sales in recent years — by 22%, to a total of 16,755 contracts. Such a drop was superimposed on the unsuccessful 2019, which showed an annual decrease by 14% by 2018 — up to 20,914 contracts. This is approximately 1,256 transactions per 100,000 inhabitants.

In general, 2018 was the best year in the last five years. At that time, 24,006 real estate transactions were recorded. It is quite possible that in 2022 the Canary Islands will be able to reach this figure again. 2018 was 4% higher than 2017, when 22,920 contracts for the purchase of a house were recorded.

Great activity in Santa Cruz

According to the sales representative of one of the largest real estate agencies in Spain, it can be noticed that the Canary Islands market shows very high activity on the island of Tenerife.

As for Santa Cruz (Santa Cruz de Tenerife), the capital of Tenerife, the majority of real estate sales occur in areas remote from the center, such as Somosierra, Los Gladiolos, Barrio de la Salud and El Toscal.

According to the said representative, quite cheap apartments are located in these areas, and people buy them both for living and as investments. The purchase of real estate in these areas for rental during the holiday seasons is particularly popular. Such investments show good profitability.

The price of square meters

The average price per square meter in March was 1,762 euros in the region, which is 7.2% more than in the same month of 2021.

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