Gran Canaria Property

2007 report

This report was prepared by Engel & Völkers, a real estate agency with offices in many of Spain’s most popular destinations. It is reproduced here with permission. More information on Englel & Völkers

Gran Canaria properties

The Canary Islands are made up of seven large islands (Gran Canaria, Tenerife, Fuerteventura, Lanzarote, La Palma, La Gomera and El Hierro. All the islands have their own characteristic landscape, which tends to be radically different from each island to the next.

They are located south west of Spain and north west of Africa facing the Moroccan coastline. Their location ensures constant warm temperatures year round (average temperatures of 18°C in winter and 24°C in summer).

The Canaries feature 8 international airports, 41 marinas, 17 golf courses and 4 national parks and many nature reserves. These factors, combined with their splendid beaches of fine sand and clear waters has made them Spain’s third most popular tourist destination with approximately 12 million visitors per year.

Many property owners that invest here are retired and this is demonstrated in the average time they spend on the islands (3-6 months per year). However, the second holiday home market is very strong, particularly around coastal urbanisations.

The residential property market has been buoyant here for many years and has seen continued growth, particularly in the last five years. The average price per square metre is approximately €2,800 – 3,000 which places it in the mid range of prices generally throughout Spain.

Engel & Völkers has recently opened two shops in Gran Canaria and 7 further shops are planned to be opened. On Tenerife 11 shops are planned and on Lanzarote 3 shops will be opened soon. This analysis on the residential property market is based on their findings to date and the project performance of this region.

Gran Canaria Property

Gran Canaria is sometimes referred to as “The Small Continent “because of its extremely varied landscapes with nearly 60 kms. of beaches (one of the most famous is Mas Palomas with approx. 250 hectares of sand dunes), its mountain ranges, cliffs and valleys, which make this island an ideal place for nature lovers and people who enjoy outdoor activities. The island’s capital city is Las Palmas which as founded in 1478 and many historical monuments and buildings remain in the old town.

It currently features 8 golf courses with plans for a further 10 courses to be completed over the next few years. Regular scheduled flights are available from the main European cities into Gran Canaria year round.

In Las Palmas the main buyers are Spanish (80%), British (10%) and then German, Irish, Scandinavian, Swiss and Dutch. The average spend is in the region of €250,000 - €500,000 for apartments and villas. In the Meloneras area the main buyers are split between Spanish (30%), German (30%) and British (30%) with the rest of the market split between Scandinavians and Irish, and the average spend is about the same.

Although the majority of buyers prefer coastal locations, country houses are increasingly popular, particularly for restoration, and the average spend is around €300-400,000.

Buyers are keen to be close to all facilities and particularly beaches or a golf course. Here, owners tend to use their property a great deal, as much as half the year, so good infrastructure is important to them.

The most requested villages are Canteras, Tafira Alta/Baja and Bandania. Around the Meloneras shop, the most requested areas are Monte Leon, Playa d’Ingles and Mas Palomas where the demand for penthouses has increased by 10% and for front line villas by 20% in the last year.

As in other parts of Spain, some of the largest increases have been in the past 5 years. Around Las Palmas prices of villas have increased by around 20% and for apartments up to 25%. The most dramatic increases have been for plots of land of up to 200%. However in the last year, these increases have slowed down and the market has stabilised with average prices of starting at approximately €300,000 for an apartment to €800,000 for a villa.

Around the Meloneras area the prices of villas has increased by around 50% in the last 5 years. Last year prices were still rising at around 10- 20% depending on the property and location. Here average prices for apartments with views were selling from €250,000 to €1 million for a luxury villa overlooking the sea.

The combination of warm year round climate, good infrastructure, easy access and good prices makes Gran Canaria an attractive investment. In the capital of Las Palmas, typical old fisherman’s houses in the old town are worth looking at for future investment. In the Meloneras area prices around Playa de Ingles are still offering good value and a hotspot for 2007 is Monte Leon.