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HIGH RISE Property Prices Up 10% In Canary Islands

Monday August 7, 2017

HIGH RISE Property Prices Up 10% In Canary Islands

The price of property has continued to rise in the Canaries over the last year - despite falling by over 2% across Spain as a whole, according to the latest research into the nation´s real estate sector conducted by

According to the purchase price of property across the Canaries has risen by 10% over the last year. Making the islands the fastest growing region in terms of property price rises in the whole of Spain.

Several factors are driving this surge in demand. The Canary Islands economy as a whole has grown by some 2.3% over the last year and unemployment has fallen. Credit lending criteria have also been relaxed by local banks, making it easier for residents to access mortgage finance. Whilst low interest rates are driving investors into the sector, in the absence of significant returns from savings.

Overseas demand is also a strong factor, as British, German and other European buyers continue to invest in the archipelago for retirement, relocation or rental purposes. Whilst the booming, but as yet unregulated, holiday rental market is also attracting investors both domestically and from abroad.

Lanzarote´s major resorts, such as Puerto del Carmen, now enjoy some of the highest occupancy levels in the whole of Spain. Making it an obvious hot spot for investors. And as a result prices for apartments in particular have soared over the last year or two, with few bar the most basic studios now selling for less than 100,000 euros.

Overall, the Canaries are now the seventh most expensive region in Spain, with prices per square metre standing at 1475, now exceeding other regions such as Valencia and Andalucia. The Basque Country and the Balaerics remain the most expensive places to buy a property, with prices per square metre coming in at 2546 and 2308 respectively.

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