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The Canary Islands Property Market 2022

Click here for lots more information about the Spanish Property Market in general.  Many of the issues covered also apply to the Canaries. The report below looks at the statistics relating to the most important of the Canary Islands for the overseas property market.  As the figures show, the islands of Gran Canaria and Tenerife dominate the foreign market.

Introduction to the Canary Islands 

Property finders Canary IslandsThe Canary Islands comprise eight islands, of which Tenerife, Gran Canaria and Lanzarote are the most active in terms of the overseas property market.

However, in comparison with some other regions it is a relatively small part of the overall overseas market. In the 1st half of 2021, the Canary Islands made up 7.2% of the overseas sector. In contrast, the Comunidad Valenciana accounted for 24% of this sector over the same period.

Nevertheless, before the virus struck the overseas property market in the Canaries was continuing its post-2008 recovery. From a low in 2010/11, overseas property buyers returned in increasing numbers year-on-year, peaking in 2018.  However, in common with several of the regions that attract foreign buyers, the Canaries did lose some ground in 2019 and there were 18% fewer foreign buyers than in 2018.  Given that over 30% of all foreign buyers in the Canary Islands are British it’s possible that the weak GBP and Brexit were factors.  In spite of that, the 1st half-year statistics for 2021 show 3,423 foreign buyers, only 3.8% lower than the 2nd half of 2019, just before the pandemic arrived.

We can’t be certain how many foreign buyers went missing between March 2020 and June 2021, the period of strict lockdowns and travel restrictions.  However, if we take the same time frame pre-pandemic we can surmise that about 3,000 overseas buyers who would have been expected to buy a property somewhere in the Canary Islands between March 2020 and June 2021 didn’t.  The fact that the statistics we have so far for 2021 show a bounce-back to almost 2019 levels is an encouraging sign for 2022.

Where the Numbers Come From

The Notaries are my preferred source for a straightforward count of transactions numbers with breakdowns by nationality, autonomous regions and prices per square metre.  These are published half-yearly. We get Q1 and Q2 in November of the same year and Q3 and Q4 in May of the following year. That means we will have to wait until May 2022 for the full 2021 picture.  However, what we have so far is promising.In spite of that, compared with the statistics we quote in other reports, the data regarding the overseas property market in the Canaries is, in my view, partial at best.  This is due to the fact that the Notaries don’t separate out the individual islands. They just count the Canary Islands as one unit and give one number in respect of overseas buyers in the period. Secondly, the breakdown from the Ministry of Development only covers two islands, Gran Canaria and Tenerife. In spite of these two issues I think there are some things the figures can tell us.

Where the Activity Is

First of all, by digging into the annual statistics, it is clear that Gran Canaria and Tenerife dominate the overseas property market in the Canary Islands.  Comparing the Notaries’ total for the Canaries as a whole in 2021 with the Ministry of Development’s count over the same period for just Gran Canaria and Tenerife we see that 96% of overseas buyers chose those islands. In terms of split, it’s quite even; 53%% bought in Tenerife and 47% in Gran Canaria. So, although not a complete picture it’s good enough to get a feel for the dominance of these two islands in the overall Canary Islands property market.

The Importance of the Overseas Market

Over the 1st half of 2021, overseas buyers had a 15.4% market share of Spain’s overall property market.  However, in several of the locations most popular with foreign buyers the market share was much higher. The Canaries Islands was one of those regions with foreign buyers taking 31.9% market share. This is the second highest in Spain, only in the Balearics is the overseas market share higher.

 

Foreign Spending Power

Not only do foreign buyers in the Canary Islands take a market share way above the national average, they also spend more.  According to the Notaries’ figures overseas buyers spent on average €1,863 per square metre in 2021.  That compares with the domestic average of €1,481.  However, in the Canary Islands the average spend was €1,940, 24% above the domestic average and higher than both Andalucía and the Comunidad Valencia on the mainland.

What’s Ahead

Our view is that demand from overseas buyers was holding up very well in the 1st half of 2021. While, no doubt, some potential buyers have put their plans to purchase a property in Spain on hold others are telling us that they intend bringing their planned purchase forward. They just want to get on with it. If a significant number of the missing buyers during the worst of the pandemic restrictions come into the market in 2022 we predict a healthy year ahead even if demand from new buyers entering the market stays at normal levels. We will know more about the Canary Islands property market 2022 once we have the 2021 full-year figures in a coupe of months’ time.

For more about each island in turn please visit this Locations page, for information about the uniqueness and variety that property buyers can find in the Canary Islands.  

©The Property Finders

 

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