The Canary Islands are not only a tourist paradise with year-round bathing weather, but also a hot spot for buying real estate. The seven main islands offer a wide variety of holiday destinations. The archipelago, located off the coast of North Africa, forms an autonomous region of Spain, which in turn comprises two provinces: Santa Cruz de Tenerife (Tenerife, La Palma, La Gomera, El Hierro) and Las Palmas (Gran Canaria, Fuerteventura, Lanzarote).
Last year saw a dramatic increase in property sales in the Canary Islands has increased dramatically. The number of transactions has increased by around 45 per cent in comparison with privately financed housing within a year (figures for the 1st-3rd quarters of 2021 and 2022). The total value of these sales was 53 percent higher. The price trend is not uniform. In many places, however, prices are rising. Overall, there has been a moderate price increase of 3.8% in the Canary Islands (source: TINSA). The exception is currently the urban area of Santa Cruz de Tenerife, where existing properties have risen by 18.7% in the last 12 months. This is one of the highest values in all of Spain.
International buyers play a major role in the Canary Islands market. Germans, British and Italians dominate.
Tenerife, the largest island of the Canary Islands (2,034 km2/978,000 inhabitants), offers something for almost every taste: nature lovers and individualists are drawn to the seclusion of the forests, scree deserts and mountains. Tenerife is a sparsely populated hiking destination around Spain’s highest mountain, Mount Teide (3,718 m), and in the Anaga Mountains. In contrast, the northern town of Puerto de la Cruz has a long tradition as a holiday resort and wintering destination with a wide range of leisure activities. The capital, Santa Cruz de Tenerife, in the north-east, still has a real Spanish feel. The sunny south coast, however, has become the most visited area of Tenerife in recent decades. The coastal resorts of Los Cristianos, Playa de las Américas and Costa Adeje have become hotspots, offering everything from simple beach and party holidays to five-star golf and deluxe spas.
The southern municipalities of Adeje and Arona saw the highest demand for real estate on Tenerife in 2022. Prices here also continued to rise. With average asking prices of just under 4,000 euros/m2, Costa Adeje and Playa de las Américas are the most expensive areas in the Canary Islands. In the luxurious Abama Resort in Guía de Isora, however, you can expect to pay around 6,500 euro/m2. Some top properties even go for over 10,000 euros. In the South, attractive houses and villas range from around 750,000 to 8 million euros. In Puerto de la Cruz the real estate market is very solid due to the large number of foreign owners and prospective buyers. Prices have recently risen significantly. The average price is just under 2,400 euros/m2 in the better areas. Houses/villas typically cost between 220,000 and 3 million euros and two-bedroom apartments between 170,000 and 540,000 euros. Top villas in prime locations in Santa Ursula can cost over 8 million euros. In the urban area of Santa Cruz, prices for existing properties average €1,714/m2. But even in the best areas of the city centre, prices rarely exceed €4,000 per square metre.
La Palma, La Gomera, El Hierro
The three small islands that make up the province of Santa Cruz have a total population of around 121,000 and are full of natural beauty. The emphasis is on sustainable tourism. All three islands have been declared UNESCO Biosphere Reserves. La Palma is a trekking paradise with 1,000 kilometres of hiking trails. Discover imposing volcanoes and spectacular landscapes, as well as the Spanish flair of the capital Santa Cruz de la Palma. On La Gomera, the ecosystem of the Garajonay National Park in the centre is unique in the world. It preserves the laurel forest that covered the entire tropical area millions of years ago. Touristically, La Gomera still lives on its reputation as a former hippie and dropout island. The main holiday resort here is Valle Gran Rey. El Hierro, the smallest of the Canary Islands, offers fantastic diving spots. Next to the fishing port of Restinga in the south is the marine reserve, with ten diving spots and a lively volcanic underwater landscape. The trio of islands has an overall favourable price level, but also a limited supply with only a few top properties. The average price per square metre on offer is around 1,300 to 2,030 euros/m2 in the larger towns, with La Palma having a slightly higher price level, with El Paso and Los Llanos de Aridane being the most desirable locations. Apartments on the islands usually cost between 80,000 and 350,000 euros. Houses are 160,000 euros. On La Palma and El Hierro there are individual top villas costing up to 2 million euros. The luxury resort Pueblo Don Thomas resort on La Gomera, built by the Fred Olsen shipping company, is now sold out.
Gran Canaria is considered a “continent in miniature”. In the south, mass tourist resorts and luxury zones are spread out around the spectacular dune landscape of Maspalomas – resorts such as Playa del Inglés or Puerto Rico promise sun, sand and joie de vivre all year round. Mogán and San Agustín are quieter. The Costa Meloneras has exclusive hotels. As a result, the fan community is very heterogeneous. The interior of the island, on the other hand, appeals above all to lovers of solitary natural landscapes. And in the north of Gran Canaria, the largest city of the Canary Islands, the metropolis of Las Palmas (379,000 inhabitants), attracts visitors with its old town, harbour flair and city beach, as well as a vibrant cultural and leisure scene. The south of Gran Canaria offers a wide range of real estate, from solid holiday apartments in Playa del Inglés (from around 170,000 €/2 bedrooms) to luxury villas in Monte León or the Pasito Blanco marina for up to 6.9 million euros. The area is in high demand from international buyers, with prices rising by around 8 percent in the last year. In the tourist areas you can expect to pay between 3,000 and 4,000 euros per square metre, with Maspalomas-Meloneras, San Agustín and Playa del Inglés being the most expensive. A top location for villas, in addition to Monte León and Pasito Blanco, is Salobre Golf (houses/chalets: €580,000 to €2.9 million). Also interesting for luxury purchases is the municipality of Mogán with apartments up to €950,000 and villas up to €2 million. In Las Palmas, the area surrounding the city beach, Playa de las Canteras, is the most expensive real estate location with apartment prices ranging from €250,000 to over a million. Villas can cost up to 3.8 million euros in Las Palmas. However, the city is dominated by much more moderate price levels: townhouses at an average of €320,000, residential properties overall average €231,000 (€2,087/m2). Prices are stable.
Endless white beaches, lots of wind and a turquoise sea are the trademarks of the popular holiday destination of Fuerteventura. The second largest of the Canary Islands (1,660 km2), Fuerteventura is characterized by its sparse vegetation and small population (122,500 inhabitants). There are 150 kilometres of beach – no other Canary island comes close. It is a paradise for beach lovers, sun worshippers and water sports enthusiasts such as wind and kite surfers. The market for holiday homes is very stable, with prices rising in the north near Corralejo. There is a good supply of apartments, ranging from 140,000 to 420,000 euros for two bedrooms in the resorts. Houses and villas range from 300,000 to 3 million euros in Fuerteventura. Average prices per square metre range from 1,270 (Puerto del Rosario) to 2,900 euros/m2 (Lajares/north of the island), depending on the area.
Lanzarote (846 km2/155,000 inhabitants) offers retreat and relaxation as well as good beach holidays. Bizarre landscapes attract hikers and amateur volcanologists, especially in the Timanfaya National Park. If you want to party, Puerto del Carmen is the place to be; families with children are more likely to be drawn to Costa Teguise; in southern Playa Blanca, the long coastal promenade with views of Fuerteventura is a great place to chill out and feast. Lanzarote is well-known to athletes from all over the world, who like to set up their training camps here. On the real estate market, prices are rising a bit. (about 7% increase in 2022). Apartments in the best locations on the first sea line in Puerto del Carmen or Playa Blanca cost on average around 250,000 euros (4,500 €/m2). Away from the prime locations, however, €120,000 to €180,000 is more the norm. Lanzarote’s luxury enclave is Puerto Calero, a marina on the south-east coast with prices ranging from €750,000 to €3 million for villas. In Playa Blanca, the top price is €2.8 million. Chalets with 2 bedrooms start at around €300,000.
As a destination with year-round bathing weather, the Canary Islands have a unique selling point within the EU. In addition, prices are still comparatively low. It is therefore likely that the Canary Islands will continue to be a popular destination for property buyers, despite the current uncertainties over inflation and the war in Ukraine. Even according to the latest figures from January 2023, there is good demand in Spain, with prices continuing to rise.
Despite its tourism, Lanzarote (846 km2) also offers many places of retreat and relaxation. The island is also popular with sports enthusiasts from all over the world.
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