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rise destroys holiday many housing aspirations prices have unstoppable

The unstoppable rise in holiday prices "destroys" many aspirations to have housing

The unstoppable rise in holiday prices "destroys" many aspirations to have housing.

Between January and March, the value has registered a growth of close to 5% in the Canary Islands, with La Oliva above the average with a 7% increase.

"Buying a developable land in Lajares right now can be around 170 euros per square meter, and with this price plus the numbers of labor it is very complicated to make a house for less than 500 thousand euros. That is, working you are not going to buy a house if you are a normal person, and even with good salaries", this sentence of a neighbor of the town, who is also dedicated to construction and sees how the present and the logic of the law of supply and demand distorts reality that leads us to a "new Fuerteventura".

With this panorama, some areas of Fuerteventura are reserved for foreigners with strong purchasing power or investors who see in holiday rentals a new manna that has come to stay, while changing the social context of the island. But it does not only happen in Lajares, the saturation of the market and prices are opening "other routes to the vacation".

"Right now investors are looking at Tindaya, the land is cheaper and the tourist who comes looking for holiday rental does not seem to care much, Tindaya is the new Lajares," explains this neighbor.

The lack of housing in towns such as Villaverde, Lajares, La Oliva or Tindaya makes the workers of Corralejo even more "tight" in terms of access to housing. In the center and south of the island the phenomenon is less pronounced, but it is still a trend that begins to create certain tensions.

The numbers don't fail

The price of holiday homes in the Canary Islands continues unstoppable, with values that are above the average of the general cost. However, the figure is significantly higher in those municipalities with a significant presence of the tourism sector, as is the case of the south of Gran Canaria (2,250 euros per square meter), 2,000 euros in Fuerteventura, 2,750 in Lanzarote or 3,500 euros per square meter in the municipalities of southern Tenerife. Thus, with an average growth of 5%, the increase is notably more prominent in the province of Santa Cruz de Tenerife, where it stands at 7%.

This is clear from the report 'Housing in Costa 2023', prepared by the real estate valuation and consulting company Tinsa. In it, it is detailed that the cost of holiday housing has registered a constant growth, not only in the first three months of this 2023, but also in the last five years, with an increase of 3% on average. However, the current cost is 15% lower than when the maximum prices were reached in 2008. A fact that reflects that the coastal municipalities of the Archipelago, especially those that concentrate a greater tourist activity, continue to be attractive for those who decide to invest in homes that, subsequently, are destined to holiday rental.

By provinces, in Las Palmas the average value stood during the first three months of the year at 1,520 euros per square meter and the market of the coastal municipalities accounted for 97% of total sales and 94% of the promoter activity of the entire province. In addition, with regard to demand, in Gran Canaria the British and Norwegians stand out, although in Las Palmas de Gran Canaria the national profile is on par. Meanwhile, in Fuerteventura the majority are Italians and Germans; and in Lanzarote the British, Italians and French are concentrated.

Adeje is the municipality with the highest average price of holiday homes (2,022 euros per square meter)

As for Santa Cruz de Tenerife, the average cost during the first quarter was 1,504 euros per square meter and, in this case, the market of the coastal municipalities accounted for 99% of the sale and 80% of the development activity. About the demand, in the western islands varies between them. Thus, in Tenerife the foreign buyer from Germany, the United Kingdom, Belgium and Italy predominates; in La Palma it is the national one coming from the peninsula and in La Gomera it is a regional buyer.

If the data are analyzed by municipalities, those with a high presence of the tourism sector register the highest values and, in most cases, also the highest growth. According to the Tinsa report, the highest cost is recorded in Adeje, with 2,022 euros per square meter and a growth in the first quarter of 4%.

The biggest rise in La Oliva

However, this is not the most outstanding increase in the Archipelago because, in La Oliva and San Miguel de Abona it has been more than 7%. In absolute values, San Bartolomé, Tías, Yaiza and Teguise, in Lanzarote, also have a high average price, of more than 1,900 euros per square meter, the only ones that record these values.

On the other hand, in municipalities such as Arona, San Bartolomé de Tirajana and Las Palmas de Gran Canaria, the average cost is above 1,700 euros per square meter, but with a somewhat uneven growth in the first quarter. While in Arona and the capital of Gran Canaria the increase has been more than 3%, in the municipality of the south of Gran Canaria it has been 1.6%. In addition, above 1,600 euros per square meter are Candelaria and Pájara.

Likewise, the most discreet growth was recorded in Agüimes (0.8%), Gáldar (0.5%), Arrecife (unchanged), San Sebastián de La Gomera (0.5%) and Los Llanos de Aridane (0.3%). Finally, two localities have recorded a decrease in the average value of holiday homes. This is the case of Telde (-0.4%) and Güímar (-0.7%), although in both cases that average price is above 1,200 euros per square meter.
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