The price per square metre of pre-owned housing in the Canary Islands came to 1,942 euros in April, 11.98% higher than in the same month in 2022.
According to the data published this Wednesday in the monthly sales price report of pisos.com, this price also represents an increase of 1.99% compared to March, when it was 1,904 euros/m2. By provinces, in Las Palmas de Gran Canaria the year-on-year increase was 7.89% – up to 1,974 euros/m2 – and in Santa Cruz de Tenerife 16.84% – 1,907 euros/m2 -.
In terms of the Canary Island capitals, the Gran Canarian capital saw an increase of 7.44% in April compared to the same month of the previous year, 2,323 euros/m2, and the price in Tenerife grew by 15.47%, 1,946 euros/m2.
Meanwhile, in Spain as a whole, the price per square metre of pre-owned housing stood at 2,043 euros in April, 7.22% more expensive than in the same month in 2022, when it reached 1,906 euros. This rise in April also represented an increase of 1.35% compared to last March, when the price per unit of floor space was 2,016 euros.
“Despite the increase in mortgage loans, the value of the square metre continues to rise and there are few capital cities where it is not more expensive to buy now than a year ago,” said Ferran Font, director of research at pisos.com.
However, the expert has been confident that the cooling of prices will be noted in the coming months, in the sense that over the course of 2023 the “logical thing is that the upturns will be softening and abandoning the two-digit percentages because they are not sustainable.
In this sense, Font cited inflation, which is affecting families, and the depletion of savings, as well as “the worse financial conditions offered by banks”.
The spokesperson for the real estate portal also points to the new Housing Law as “a factor that could slow down investment buying and selling and, therefore, indirectly pull prices down, by reducing pressure”. According to Font, “the fact that the updating of rental rents no longer obeys the rules of the market, reduces the interest in buying for investment”.
Although housing continues to be a safe haven in the long term, “if profitability is limited to unattractive percentages, the amortisation of the asset is delayed, which causes people to start looking at other savings destinations that are not subject to political interference”, the director explained.
THE BALEARIC ISLANDS, MADRID AND THE BASQUE COUNTRY ARE THE MOST EXPENSIVE
Pre-owned housing in the Balearic Islands, Madrid and the Basque Country recorded the highest prices per square metre in April, up to 4,045 euros, 3,441 euros and 2,970 euros, respectively.
Additionally, the cheapest were Extremadura, with 804 euros per square metre, Castilla-La Mancha (864 euros per square metre) and Murcia (1,157 euros per square metre). In year-on-year terms, the most striking rises were in the Balearic Islands (20.30%), the Canary Islands (11.98%) and the Valencian Community (11.81%), with no adjustments recorded in this comparison.
By provinces, the Balearic Islands was the most expensive with 4,045 euros per square metre, followed by Madrid (3,441 euros per square metre) and Guipúzcoa (3,356 euros per square metre). On the opposite side was Ciudad Real, which closed the ranking with 654 euros per square metre.
