Surge in interest from foreign nationals to purchase property in the Canary Islands

Foreigners' interest in buying property in the Canary Islands represents 7.7% of Spain's total foreign mortgage demand, ranking fifth in the nation behind Valencia, Andalusia, Catalonia, and Madrid, as reported by Idealista.

The demand from foreigners seeking to purchase property in the Canary Islands has accounted for 7.7% of the total mortgage demand for foreigners in Spain. This places the Canary Islands in fifth place nationally, trailing behind Valencia, Andalusia, Catalonia, and Madrid, according to data from Idealista.

During the third quarter, Germans surpassed the British in mortgage applications in Spain, comprising 13.1% of the total, while the British dropped to second place at 12.9%. French citizens secured the third spot with 11.2%, followed by Americans and Swiss nationals.

Idealista also reports that citizens from France, Ireland, and Sweden have exhibited a notable increase in demand for mortgages. In contrast, demand from the Netherlands has decreased since 2020. Although not the most numerous, Americans stand out for having the highest incomes and applying for the largest mortgage amounts. Their average monthly income is €9,090, surpassing the foreign average of €6,425.

Surge in interest from foreigners seeking to purchase property in the Canary Islands

On average, foreigners seek financing for 71% of the property’s cost, with Swedes and Italians requiring more bank resources. The average age of mortgage applicants is 40 years old, with Swedes being the oldest and the Swiss the youngest.

In terms of preferred locations, the Valencian Community leads in mortgage applications, followed by Andalusia and Catalonia, indicating a preference for coastal areas. The majority of foreigners opt for fixed-rate mortgages, accounting for 73% of the total.

Shifting trends in property purchases by foreign nationals in Spain

In the first half of 2023, British buyers dominated property purchases in Spain, followed by Germans and Moroccans. There has been a notable increase in property purchases among Russians, Ukrainians, Americans, and Chinese. Americans, in particular, have doubled their property sales compared to the first half of 2021, influenced by factors such as the euro-dollar exchange rate and weather considerations.

The average price paid by foreigners per square meter was €2,095, with Swedes and Danes paying the highest prices. Except for Norwegians, all nationalities recorded prices close to all-time highs during this period.

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