Santa Cruz de Tenerife leads the increase in the price of new housing throughout the Canary Islands

Appraisal Society has published its Study of New Housing in the Balearic and Canary Islands, which includes broken down information corresponding to the first half of 2022. This report analyzes the evolution of the average prices of new housing, as well as the evolution of different real estate indicators.

The report details that Las Palmas de Gran Canaria is the provincial capital with the highest average price of new housing in the entire region (1,787 euros/m2), surpassing Santa Cruz de Tenerife (1,507 euros/m2). On the other hand, Santa Cruz de Tenerife leads the increase in the price of new housing in the last year (+6.1%), while in Las Palmas it rises 5.1%, both below the national average (+ 6.4%).

By municipalities, beyond Las Palmas de Gran Canaria and Santa Cruz de Tenerife, the highest price for new housing is in Puerto de la Cruz (1,593 euros/m2) and Telde (1,469 euros/m2).

Regarding other real estate indicators, the report includes the Real Estate Confidence Index prepared by ST. In the Canary Islands, this indicator stands at 54.2 points out of 100 in the second quarter of 2022, which represents an increase of 2.1 points compared to the previous quarter, although slightly below the national average (54.8). The upward trend in this indicator denotes an increase in optimism in this community, in a context of great dynamism in real estate and mortgage activity.

On the other hand, the Real Estate Effort Index, whose indicator measures the number of years of full salary that an average citizen would need to allocate for the purchase of an average-type home, remains stable at 7 years of full salary in the Canary Islands at the end of the second quarter of 2022. This figure is slightly below the national average, established at 7.3 years.

In turn, the ability of a citizen with average income to access a home, assessing both salary and debt capacity and mortgage rates, places the Accessibility Index in the Canary Islands at 115 points, two less compared to the last trimester. Thus, taking as a reference that the balance point is 100, in the Canary Islands it is necessary to make an economic effort less than the appropriate maximum to be able to access a home. At the national level, this value stands at 108 points.

Study of New Housing in the Balearic and Canary Islands

The information used to prepare the study comes from the data on the supply of new housing in the building that has been captured by the network of ST collaborators and that is also used to carry out the valuations. The field study and data analysis was carried out in the months of May and June 2022 both on the islands and in the rest of the autonomous regions of Spain. In total, the values ​​of more than 45,000 homes corresponding to more than 3,200 promotions have been taken into account.

These data are processed through a rigorous filtering and normalization procedure based on homogeneous criteria (measurements, considerations of annexes…) and possible transaction values ​​are obtained by deducting possible discounts or commissions through a purchase simulation procedure. The information included in each data contains 60 variables, used to determine the average values ​​in different territorial areas.

The Study of New Housing in the Balearic and Canary Islands detects a general increase in the average price of new housing in both regions, and maintains a trend similar to that presented at the national level. The Balearic Islands remains the region with the highest average amount of the two (€2,355/m2), after registering an annual increase of 8.2%, the highest growth in all of Spain. In the Canary Islands, the weighted price of new housing reached €1,689/m2 in June 2022, with an annual variation of 5.4%.

In general terms, the average price of new housing stood at €2,641/m2 in Spain, with a year-on-year increase of +6.4%. This general upward trend is also observed during the last six months, with an increase of +3.5%.

For its part, the Balearic Islands also registered the greatest six-monthly variation of the entire Spanish territory, after increasing by 4.6%, surpassing the Community of Madrid (+4.4%). In the Canary Islands, the variation in the last six months has been +3%.

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