The inclination of foreign investors to purchase property in the Canary Islands, specifically favoring the Province of Santa Cruz de Tenerife, is not merely a recent development but a well-established trend over the past years, substantiated by the data from the Spanish Property Registrar’s Office. This pattern becomes evident from the statistics beginning in 2012, which marked the inaugural year the Registrar’s Office detailed the nationalities of property purchasers by regions and provinces across Spain.
An analysis by DIARIO DE AVISOS, based on these statistics, reveals a significant trend: over the last twelve years, a third of all properties sold in Tenerife’s province were bought by international buyers (33.5%). This figure starkly contrasts with the eastern province’s 20.79% and the overall regional average of 26.8%, indicating a distinct preference for Tenerife among foreign investors.
The Canary Islands’ property market trends over the years have shown variable patterns, characterized by fluctuating percentages of foreign purchases that display a “sawtooth” pattern, without marked upward or downward trajectories but rather sporadic rises and falls. While the Eastern Province has shown more consistency, the Western Province experienced its highest influx of foreign property investments in 2017, with a staggering 40.72%, overshadowing the 22.33% in Las Palmas de Gran Canaria and a regional high of 31.35%. This peak in 2017 highlights a year of exceptionally high interest in Tenerife from abroad. Conversely, Las Palmas reached its peak earlier in 2014, with a 23.81% rate.
The lowest rate of foreign property purchases in Santa Cruz de Tenerife was observed in 2012 at 27.19%, the year records began, indicating an initial surge in foreign interest that has since seen various highs and lows. Similarly, the Province of Las Palmas experienced its lowest foreign purchase rate that same year at 17.4%, amidst a backdrop of financial crisis and austerity, showing that the trend of foreign investment has generally been on an upward trajectory despite economic challenges.
Year-by-year analysis in Tenerife shows a dynamic market, with percentages gently climbing from 27.19 in 2012 to a remarkable 40.72 in 2017, followed by subsequent fluctuations. In contrast, Las Palmas displayed a gradual increase from its 2012 nadir, with minor fluctuations but generally trending upwards.
The overall regional average for foreign property purchases commenced at 22.11% in 2012, escalating to its zenith of 31.35% in 2017. This pattern of fluctuation, with periods of decline followed by recovery, mirrors the broader dynamics of the real estate market, influenced by a range of factors from global economic conditions to local market sentiments.
NATIONALITIES OF FOREIGN BUYERS ON THE ISLANDS
When compared to the rest of Spain, the Canary Islands have consistently been a hotspot for foreign buyers, often competing with the Balearic Islands for the highest percentage of foreign transactions. Detailed analysis of buyers’ nationalities from 2012 to 2022 illustrates the diverse origins of these investors, with Germans, Italians, and Britons frequently leading in Tenerife.
This diversity underscores the Canary Islands’ appeal to a wide range of international investors, attracted by various factors including the climate, lifestyle, and investment opportunities available, reflecting the islands’ status as a prime location for property investment in Spain.
