Houses are cheaper here than in northern Europe and prices crashed in 2007 with the worldwide recession and have been falling ever since. However are house prices going to continue falling? Is now the right time to invest in property in Gran Canaria?
This recent article below in The Canary News should help you decide whether this is a good time to start investing in Gran Canaria. We have summarised the key points below.
The raw data
Every month Tinsa, the property valuations agency, publish the trends in house prices throughout Spain, split into regions.
- Prices now in the Canary Islands are a huge 31.1% less than they were in 2007
- Last year prices only dropped by 2%
- At certain points during 2014 prices actually increased a little for a while.
- While prices are still decreasing, the decrease is much lower than previous years
- In 2015 people should expect an annual price change of around 0%
These results seem to show that the slump in the Canarian property market is nearing the end.
Many believe that the turnaround in property prices is mainly driven by foreign property buyers. In Spain, the top buyers are Britons who accounted for 15% of all sales to overseas investors, followed by the French (10%), Russians (9%), and Belgians (7%). In the Canary Islands 34.34% of property was bought by foreigners in 2014. This shows a confidence in the market which is another indicator that the housing property slump may soon be over.
Where to BUY YOUR NEXT HOUSE CHEAPLY
- Estate agents are a good place to start
- Housing websites like fotocasa.es and segundamano.es for a private buy where you can often negotiate significant discounts, however never buy directly without a good lawyer.
- Buy a house at auction. Because of the high number of unemployed and recent falls in salaries, if you have the cash up front available there are plenty of bank repossessions around that are often well below market value. However buying at auction is not for the faint hearted and you should always seek good legal advice beforehand.
If you are looking to invest in property in Gran Canaria or need assistance purchasing at auction, please give us a call on 928504332 or email us at email@example.com.