The south of Tenerife is becoming a hot spot for foreign property investors, with over half of all purchases now in their hands and average prices soaring by 7.4% to 2,306 euros per square meter.
The south of Tenerife is becoming a hot spot for foreign property investors, with over half of all purchases now in their hands and average prices soaring by 7.4% to 2,306 euros per square meter.
Newcomers Starting a New Life in Growing Communities.
The increasing population in these islands, which sees Tenerife alone welcoming over 10,000 new residents annually, has created a severe shortage of available housing. This shortage, combined with the high demand for rental properties, has resulted in skyrocketing prices, making it difficult for local workers to find affordable housing options.
As a result, many are forced to overpay for smaller properties, share living spaces, or move further away from their place of work. This trend has even been cited by small businesses in the south of Tenerife as a contributing factor to the difficulty in finding reliable staff.
Shifting Consumer Trends in 2022 .
Despite the high demand, property transactions by foreign individuals in the Canary Islands only amounted to 9,067 operations in 2022, with only 1,132 of those transactions being made by foreign residents. This trend has caused a decrease in the number of properties available for long-term rent.
Furthermore, the average selling prices in the archipelago have seen a 7.4% increase, now standing at 2,306 euros per square meter. This trend shows no signs of slowing down and continues to be a pressing issue for both the local residents and the real estate market in the Canary Islands.
