03/07/2023 - 6:00

The foreign buyer is the main driving force behind this market

Adeje and San Bartolomé de Tirajana concentrate the majority of the offerings.

Lorena Torío

The Canary Islands are becoming an increasingly sought-after destination among luxury home buyers looking for a second residence. And it's not hard to see why: the region boasts a warm climate all year round, stunning natural landscapes, and a wide range of services and amenities. Additionally, the average price of high-end homes is lower compared to the mainland and the Balearic Islands.

To become the owner of an exclusive property, with a price tag exceeding one million euros, the average cost per square meter nationwide is €5,198, while in the Balearic Islands, it reaches €6,577 per square meter. However, in Tenerife, the figure decreases to €4,557 per square meter, and in Las Palmas, it goes down to €3,777 per square meter, according to data from idealista.

In addition to the attractive prices, the archipelago stands out for its limited supply, representing only 3% of the luxury homes available in the Spanish market. The majority of these properties are found in Santa Cruz de Tenerife and Las Palmas. Among the municipalities, Adeje leads the way, followed by San Bartolomé de Tirajana, Guía de Isora, Las Palmas de Gran Canaria, and La Oliva.

The scarce supply contrasts with the high demand. "The demand pressure for this type of product in the Canary provinces exceeds the national average, with both provinces among the most sought-after with this kind of offering. Las Palmas province has a high demand, while Santa Cruz de Tenerife maintains the national median, and both capitals show high demand compared to the median," say experts.

Foreign Buyers

The foreign buyer is the main driver of this market, surpassing national buyers in many areas of the islands. "The majority of people acquiring a property in the south of Tenerife are foreigners, representing 81% of all the transactions we've managed, compared to 19% by Spaniards. Among nationalities, Germans are the most active, accounting for 36.4% of the transactions, followed by Czechs, Poles, Belgians, and English," explains Martina Kirsch, Director of Engel & Völkers Costa Adeje. Most of these buyers acquire properties as second residences.

"They usually spend several weeks in their second homes during the winter, and upon retirement, they spend even more time, up to a maximum of six months. There are also investors buying properties in tourist complexes, such as Abama," adds the company's representative.

Regarding the type of property sought after, 240 square meter houses with three bedrooms, ocean views, parking, pool, and garden are in high demand. The average price for such properties exceeds one million euros. "Our highest transaction reached 3.4 million euros, although it's worth noting that 19% of transactions have been sold for over one million euros," she adds.

Idealista data also shows that the most sought-after luxury homes are four or five-bedroom villas priced between one and two million euros.

Ultra-Luxury

While the Canary Islands have not been a prominent destination for ultra-luxury property buyers, the pandemic marked a turning point for this market segment. "Buyers now prefer places with less hustle and bustle, abundant nature, friendly people, excellent gastronomy, and a mild climate for most of the year," explains Mikita Staselka, CEO, and founder of Stellanella Investment Company & Development.

"It's true that the origin of our clients remains the same; our target audience hasn't changed, and we still have buyers from Germany, England, Belgium, France, Switzerland, and Italy. What has changed is their economic profile, as we now see investors with much higher purchasing power after the pandemic," says the executive, who is currently carrying out several projects in Abama Resort Tenerife.

"Now, the new ultra-luxury client has no limits; they can undertake a project worth 5 or 10 million euros, but they primarily seek a turnkey product, not wanting to worry about anything, just supervise that it meets their desired conditions," he adds.

https://www-eleconomista-es.cdn.ampproject.org/c/s/www.eleconomista.es/vivienda-inmobiliario/amp/12349255/canarias-epicentro-de-la-vivienda-de-lujo-a-precios-mas-accesibles