According to data provided by TINSA the residential market has consolidated the price stabilization process that had begun in early 2015. The evolution has been very different depending on the locations. It is worth noting the upward movement of the big capitals (Barcelona and Madrid), as well as Costa del Sol, Alicante, Balearics and Canary Islands, in contrast to inland areas and some coastal areas with high stock levels, where prices in year-over-year growth rate are still falling.
The average price in the Canary Islands recorded the lowest fall since 2007: 30.5%, much lower than the average fall in Spain (-41.2%) and the average of the Mediterranean Coast (-48.2%) or Metropolitan Areas (-44.1%)
The average financial effort (percentage of the salary necessary to face the purchase of a home) in the Canary Islands is 16.8%, significantly lower than the average of Spain (20.8%).
According to the TINSA report for the second quarter of 2016, Catalonia, Madrid and the Canary Islands maintained the positive tone already started in 2015 and increased their average prices in interannual rate by 6.8%, 5.4% and 3.6%, respectively, from April to June 2016. The city of Santa Cruz de Tenerife had a year-over-year growth rate in the second quarter of 2016 of 3.9%, only surpassed by 9 provincial capitals and more than 3 times higher than the national average.
Significant data about the current residential and hotel market in the Canary Islands
- In the period January-November 2016, the Canary Islands received 12,903,303 tourists, an amount 10.6% higher than the same period of 2015.
- Leaving aside December, the estimate is an increase in average hotel occupancy of 8-9% during 2016 compared to 2015, with monthly occupancy increases of between 2% and 5% in high season and between 7.5% and 10% in low season.
- In 2016, the average occupation of 80% was exceeded in 9 of the 12 months in the Canary Islands. In Tenerife the occupation has surpassed 80% in 11 months.
- The average ADR in hotels of the Canary Islands has been around 100 €.
- This increase dragged upwardly similar activities such as trade, catering or the transport sub-sector.
- As a consequence of this consolidation of the economy, the demand for housing is expected to grow significantly.
- Real GDP in the Canary Islands grew 4.0% in the third quarter of 2016, compared to the same period last year, as long as the growth was 3.2% in Spain.