How Does Property Prices Evolve in the Canary Islands?
The property market in the Canary Islands has undergone significant changes in recent years. As professionals in the industry, it is essential to analyze current trends to understand how property prices are behaving in this region.
Recent trends in the Canary Islands real estate market
According to recent data, the average price of housing in the Canary Islands has shown a notable increase. In November 2024, the price per square metre stood at €2,789/m², representing an increase of 15.3% compared to the same month last year.
Price changes by province in the Canary Islands
It is important to note that there are significant differences between the two provinces of the archipelago:
Las Palmas: The average price reached €2,605/m², with an annual increase of 15.5%.
Santa Cruz de Tenerife: An average price of €2,934/m² was recorded, reflecting an increase of 15.1% compared to the previous year.
Factors Influencing Price Developments in the Canary Islands
Several elements have contributed to the evolution of property prices in the Canary Islands:
Growing Demand: The demand for housing has seen a significant increase, driven by both local residents and foreign investors attracted by the climate and quality of life offered by the islands. This increase in demand has put pressure on prices, raising them steadily.
Limited Supply: The availability of land for new construction is limited, especially in coastal and tourist areas. This restriction in supply, combined with high demand, has contributed to the increase in property prices.
Impact of Tourism: The tourism sector plays a crucial role in the Canarian economy. The constant influx of tourists has encouraged investment in properties for holiday rentals, increasing competition and, therefore, prices in the real estate market.
Future prospects for the real estate market in the Canary Islands
Analysing current trends, property prices in the Canary Islands are expected to continue their upward trend in the short to medium term.
Infrastructure Investment: Infrastructure investments and utility improvements can increase the attractiveness of certain areas, further boosting property prices in those areas.
Government Policies: Government policies related to home construction and vacation rental regulation will also influence the evolution of the real estate market. It is essential to stay informed about possible legislative changes that may affect the supply and demand of properties.
In conclusion, the real estate market in the Canary Islands shows an upward trend in property prices, driven by growing demand and limited supply. For those interested in investing in this market, it is essential to carry out a detailed analysis and have the support of professionals with experience in the region. At Ruth y Slavena Inmobiliaria, we are committed to offering you the best service and advice to ensure the success of your investment in the Canary Islands.