In September, the Canary Islands experienced a notable 19% decline in home sales compared to the previous year, even as property prices rose by 5.3% and mortgage lending decreased by 14.6%, data from the General Council of Notaries reveals. This trend was mirrored nationally, with sales dropping by 14.9% and mortgage loans for home purchases decreasing by a significant 22.6%.
The month saw a total of 48,196 properties change hands, with the average price per square meter slightly dipping by 0.9% to 1,643 euros. The decline in sales was more pronounced for detached houses, which fell by 16.9% to 11,422 units, while flat transactions dropped by 14.3% to 36,774 units. Interestingly, the price per square meter for flats decreased by 1.7% to 1,811 euros, whereas the price for single-family homes remained almost steady, showing a marginal 0.1% increase to 1,347 euros per square meter.
Regionally, two autonomous communities bucked the trend with Castilla-La Mancha and Cantabria recording increases in home sales by 8.4% and 6.3%, respectively. However, a downturn was observed in the other fifteen regions, with the most significant drops seen in the Basque Country, Catalonia, and the Balearic Islands, among others.
The Canary Islands, alongside other regions, witnessed a rise in house prices by more than 5%, countering the overall national decrease in price per square meter. In terms of mortgage loans, there was a steep national fall in the number of operations, with the average loan amount also seeing a year-on-year decrease, resulting in an average of 143,926 euros.
The data indicated that only 41.7% of home purchases were financed through mortgage loans, which on average covered 70.5% of the property price. Castilla-La Mancha was the only region with growth in mortgage loans, while other regions managed to perform better than the national average despite the general decline.
In conclusion, the real estate sector in the Canary Islands, along with the broader Spanish market, is navigating a complex period marked by fluctuations in sales, prices, and lending, reflecting broader economic currents and regional disparities.
