2014 Canary Islands real estate: Paradise Marketplace!
May 24, 2014
Canary Islands, the Islas Afortunadas (lucky islands), enjoy a pleasant climate all year round. The seven originally volcanic islands of the archipelago boast fascinating and varied landscapes along with an intriguing culture.
The islands havebecome very appreciated tourist destinations. Five-star hotels have been built in the south of Tenerife to meet the high up-market demand. Holiday villages and tourist complexes are concentrated in Gran Canaria that offers white sandy beaches and rocky shores. One third of the island has been declared a Biosphere Reserve by UNESCO. Las Palmas de Gran Canaria – the capital city – is a true heaven for trekking lovers due to the presence of charming paths and unspolit natural beauties.
Despite this, the tourist industry and the real estate market of the Canary Islands have suffered the negative effects of the global economic slump. The Spanish autonomous community has reported the second highest drop in real estate transactions registered in Spain. Prices are still on the fall.
There are several investment opportunities on the islands. It is possible to buy building plots of land, tourist complexes, andtypical Canary homes. Furthermore, there is a stock of unsold properties. Banks have more than 20 thousand real estate properties – including lodgings, commercial funds and industrial warehouses – and have also lowered prices.
Drops in prices have not been uniform on the islands. Tenerife – the largest of the Canary Islands that is known as a true tropical paradise – Gran Canaria, Fuerteventura and Lanzarote have suffered more than La Palma, El Hierro and La Gomera that are wilder and less visited by tourists.
Tourists usually buy or rent standard apartments built close to the beach. At the moment, more and more investors look for rural houses and apartments that offer greater peacefulness and the possibility to enjoy the beauty of each and every single island.
Italians mostly choose Gran Canaria and Tenerife – that drive the economy of the archipelago. They often search for the typicalfincas of Tenerife – large one or two-floor houses (from 400 sqm) with 5 or 6 rooms built around an exterior patio – Prices for this kind of properties are affordable – 1500 euros per sqm – but it is necessary to take into account the frequent maintenance worksthat are necessary for the preservation of wooden finishings – balconies, floors and ceilings – and of the house skeleton – that is made with sand – Therefore, these houses require great care and a constant on-the-spot presence.
Tenerife – the island of Eternal Spring – also offers the typical chaletes adosados, studios, duplexes, penthouses, luxury villas and holiday apartments for sale or for rent. Prices start from 60 thousand euros for a one-roomed flat and from 135 thousand euros for a three-bedroom apartment.
Tenerife offers a wide range of tourist activities that include golf, diving and submarine safaris. The rental market is successful in Tenerife and many buy-to-let investors look for holiday homes for sale to take advantage of the holiday market.
The government is committed in improving infrastructures in order to enhance the development of tourism – including rural tourism.
Canary Islands offer interesting investment opportunities. Most investors come from Russia, while English homeowners are selling their properties and Spanish buyers are purchasing their home in the South of Tenerife, where the climate is warmer and where there are Italian tourists interested in renting a home for their holiday rather than in buying it.