Is 2016 the right time to sell property in Canary Islands Spain, or should you wait for a bit longer? Well, one thing you can be sure about is that any property in the Canary Islands will always be in demand. Most properties that are sold in the Canaries fetch anything from 85,000 EUR to 300,000 EUR.
Canary Islands are very popular with middle-income foreign buyers from Britain, Ireland, Sweden, Germany and Norway, looking for a second home in Spain to spend the winter. Lately, there’s been a growing interest from wealthy Chinese business executives in properties in the Canary Islands.
The most popular destinations in the Canaries are Tenerife, Lanzarote, Fuerteventura and Gran Canaria. Homes here are available for a bargain even now, although it’s been more than a year since Spain has recovered from the economic recession.
The period from 2008 to 2013 was a terrible one for homeowners in the Canary Islands. Most saw their home prices drop by over 40%. Unemployment was really very high – at around 60% for those under the age of 25 and tourism, which is the main source of revenue in the Canaries, had suffered a serious slump.
Things have changed a lot since then as the austerity measures introduced by the Spanish government in response to the economic slowdown have largely delivered. Spanish banks are lending again and mortgage rates are almost as low as they were before 2008.
The best news comes from the tourism industry, which had a record breaking year in 2015. Over 70 million foreign tourists visited Spain last year, which is the highest ever. This has been excellent news for the Canary Islands, where tourism is the biggest source of employment to the locals.
Most estate agents are very positive about the property market in the Canary Islands in 2016. Many have reported a 60% increase in the number of enquiries – which is stunning. Most of the new enquiries come from Britain, Scandinavia and Germany.
There is a plenty of demand for properties coming from China and Russia as well, but the big story in the Canary Islands is that Brits are back. There’s a huge British expat community in the Canaries, and the British have always been the most prominent buyers of properties here. But the interest from the UK flagged off a bit during the worst days of the recession, when most Brits looked to cut down on expenses and put off their dreams of buying a villa in Spain.
Today, confidence is back in Britain, with the economy back on track and a business friendly government in power. The pound has never been stronger, so the exchange rates are overwhelmingly in favour of Brits who’re looking to buy overseas property in Spain and elsewhere in Europe. This is great news for those looking to sell a villa in the Canaries as Brits have always had a thing for these islands.
Indeed, there were 50,000 property transactions made by foreign nationals in the Canary Islands in 2014, 15% of which has been attributed to Brits. The data for 2015 hasn’t been released yet, but we expect it to be even better.
One may expect a huge interest from China in properties in the Canary Islands as well as in the rest of Spain in 2016. The Chinese stock market crashed by over 10% in the first week of January, 2016 and trading had to be stopped.
This is just the latest in a series of stock market crashes seen in China over the past 6 months. So one would expect wealthy Chinese to take their money out of the stock market at home and invest in residential properties in Europe. When that happens, we expect the Canary Islands (as well as other overseas property hotspots in Spain) to benefit in a big way.