The Tecnocasa Group anticipates that in the coming months there will be in the Canary Islands, as in the rest of the national territory, a fall in housing prices, both in purchases and in rentalss, that the one who will benefit the most will be the investors. in the report Analysis of the housing market in the Canary Islands presented this Thursday, specific data from Tenerife are collected and are more or less extrapolated to the rest of the Archipelagoand among others stand out a increase of 7.5% of the purchase price and 5.4% of the rental in the first half of 2022.
Carlos García-Roldán, responsible for Tecnocasa in the Canary Islands, has indicated that the current situation of the real estate market in the islands is like “an oasis”, where the seller “can put more or less the price he wants” and the buyer benefit from the current mortgage conditions. In the second-hand market, the Canary Islands are below the national average in terms of dynamism: 2.35 dwellings are sold for every 100 existing homes compared to 2.4 for the country as a whole. Although there are notable exceptions: in San Bartolome de Tirajana this ratio rises to 8.84, 5.95 in La Oliva 5.95, 4.88 in Adeje, 3.38 in Puerto de la Cruz, 3 in Arona and 2.90 in Tías.
The scenario “will change in the coming months” and the market will get “tougher”, García-Roldán has warned, as interest rates rise and financial institutions become stricter, which will end up, he said, in a price drop.
Lázaro Cubero, director of analysis of the Tecnocasa group, has warned that if the sellers “do not react quickly” and agree to review the prices at which they put their properties on the market “there may be some surprises”. Right now there is a 19% overvaluation of the offer by individuals, that is, they ask for prices above the real market value. Although the negotiation margin has also been increasing, which in the case of Tenerife is 12% over the initial market price. At the beginning of 2020 it was 4.5%.
Tecnocasa’s forecast is that the Investors have more and more weight in the purchase and sale operations. On the one hand, because its margin of negotiation will be greater, and on the other, because in the Canary Islands a rise in rates of one or two points “would not be as noticeable” as in cities such as Madrid or Barcelona, where the price of housing is much higher. higher, so the Islands could become an investment niche, Cubero has indicated.
According to the data handled by this real estate group, the purchase of a home as an investment currently represents 27% of operations in Tenerife, in which the form of payment is in cash in 80.8% of cases. If first or second home purchases are included in this statistic, payment in cash stands at 51.5%.
The greater preponderance of investors could be “good news” for the rental market, Cubero has slipped, since the majority buys and then leases, and that is that one of the main tensions in the rise in prices, he added, is in short supply.
Even with everything, the prototype of a home buyer in the Canary Islands is that of someone looking for a first home (60.8% of the total), between 25 and 44 years old (53.6%), Spanish (75.3%), with an indefinite contract (63.3%) and with university studies (44.7%), has detailed Cristian Doniz, adviser of Tecnocasa in the Islands.
In its analysis of the market in the Archipelago, the real estate group puts the difference between the average monthly rental income (740 euros) and the letter of a mortgage (371 euros) at 369 euros for a flat of 80 square meters, with a price of sale of 103,500 euros, a loan of 80% and a term of 25 years. The most recurrent price range in sales transactions is between 75,000 and 150,000 euros (52.6%), above the range up to 75,000 euros (35.1%) and between 150,000 and 225,000 euros ( 12.3%).
Properties with three bedrooms are the most sold, at least in Tenerife, according to data compiled by Tecnocasa. They represent 56% of the total, by 25.3% those with two bedrooms, and 9.3% those with one and four bedrooms. The average size of the dwellings is between 60 and 80 square meters (29.9%), followed by those of more than 100 meters (28.9%); and with seniority between 40 and 60 years (35.1%) or 60 years or more (23.7%).