SANTA CRUZ DE TENERIFE, Oct. 4 (EUROPA PRESS) –
The purchase and sale of homes in 2023 is showing the restrictive effects of the economic measures adopted and the advance of the annualized projection until June of this year shows figures of moderate decline, more at the national level, which could decrease until ending at around the 600,000 operations, with a maintenance trend over the previous year in the case of Santa Cruz de Tenerife, and the Canary Islands as a whole, which seem to show greater resistance to falls than other geographical areas of the peninsula to date.
This is clear from the report ‘Registry Panorama. Real estate and commercial evolution of Santa Cruz de Tenerife / Canary Islands / Spain. 2014-2023’, which was presented today Wednesday by the vice dean of the College of Registrars of Spain, José Miguel Tabarés, and which has been prepared within the framework of the VII National Congress of Registrars to be held at the Meliá Palacio de Isora hotel, in Tenerife, from October 4 to 6
The report analyzes the real estate market and the evolution of the business fabric of the province of Santa Cruz de Tenerife, compared to that of the Autonomous Community of the Canary Islands and global data for Spain as a whole over the last ten years. The decade studied includes different periods of special significance, such as the emergence of the 2008 crisis, the subsequent health crisis caused by the COVID-19 pandemic in 2021 and 2022 and, especially in 2023, the effects of the war in Ukraine. on inflation and interest rates.
The data analyzed show a similar general evolution in Santa Cruz de Tenerife, the Canary Islands and Spain, delimiting three well-differentiated periods. Between 2014 and 2018 of sustained recovery, where Santa Cruz de Tenerife went from 8,000 home sales to almost 12,000, the Autonomous Community of the Canary Islands from 17,000 to more than 24,000 and Spain as a whole went from just over 300,000 home sales to surpass half a million in 2018.
The second period covers from 2019 to 2020, during the height of the pandemic, with the consequent collapse of operations in the three geographical areas, leaving Santa Cruz de Tenerife in 2020 above 8,000 sales, the Canary Islands at just over 17,000 and the Spanish group slightly exceeding 400,000 operations.
Finally, the period from 2021 to 2022, of rapid recovery once the health crisis was under control, with an increase in the level of transactions to historically high levels, in many cases even prior to the 2008 crisis itself. This caused The province of Santa Cruz de Tenerife will approach 14,000 transactions in 2022, the Canary Islands will exceed 28,000 and Spain as a whole will register close to 650,000 home sales.
On the other hand, the price of housing in the province of Santa Cruz de Tenerife has stood at 2,226 euros per square meter between June 2022 and June 2023, higher than the national average (€1,952/m2), which It represents 10.8% more than in the same period of the previous year, compared to the increase of 3.1% in the rest of the country. In the case of the Canary Islands, the price of housing in the period studied was 2,253 euros per square meter, 9.6% more.
HOUSING PURCHASES BY FOREIGNERS
With respect to home purchases by foreigners, the Canary Islands show in their home sales data the great influence of foreign tourists on their real estate activity, and Santa Cruz de Tenerife regularly accounts for more than half of home sales by foreigners. foreigners in the Canary Islands, which represents close to 10% of the total home purchases and sales by foreign citizens in Spain as a whole.
Analyzing the percentage of market share of foreigners in total home sales and sales and its evolution during the decade studied, the differences are evident: in Spain the share of foreign sales has ranged from 2014 to 2023 between 11.3%, minimum reached in the initial year of the pandemic, to the historical record expected for 2023, of 14.5%. In Santa Cruz de Tenerife and the Canary Islands, the proportion of foreign purchases doubles the national average in the autonomous community, where it reaches 28.8% in 2023 and represents an even higher percentage in the province of Santa Cruz de Tenerife, with 35 .9% expected for this year.
Analyzing the main foreign purchasing nationalities, Santa Cruz de Tenerife shows over the last decade the loss of relative weight of the British after Brexit (from 16.4% of foreign purchases in 2014 to 7.3% in 2023) and the Belgians (from 15.4% to 8%), while the Italians and French reduced their share, going from 15.4% to 13.6% for the former and from 4.4% to 3.1% for the latter. seconds. Germans are the only nationality among the most active to increase their market share among foreigners, going from 12 to 14.5% between 2014 and 2023.
However, it is worth noting that in recent years, national buyers have purchased 50% of foreign homes in the Canary Islands, which means that many other countries are seeing the archipelago as a place for investment.
COMMERCIAL OVERVIEW
The Commercial Statistics, prepared from registrations made in the Commercial Registries, shows an evident parallelism in the evolution of the number of company incorporations in the three geographical areas analyzed. As a general rule, it can be observed that the province of Santa Cruz de Tenerife manages to generate more than half of the new companies created in the Canary Islands, so its relative importance in the community tends to grow.
In 2023, the projection over the last twelve months shows a possible ceiling of incorporations during the decade studied, even exceeding 105,000 new companies nationwide, while the same trend was observed in the Canary Islands, reaching the planned 4,111 new companies, and the province of Santa Cruz de Tenerife also set maximum levels in its forecast for this year, recording 2,112 new companies planned.
As a measure of the degree of confidence of the shareholders or owners in their business projects, the number of capital increases has shown an uneven evolution in the volume of operations in the three geographical areas analyzed, with Santa Cruz de Tenerife going from 381 annual operations to 2016 to far exceed 500 in recent years, and in the Canary Islands from 888 annual extensions in 2016 to the estimated 1,052 for 2023.
These data have shown good performance in the archipelago, while in Spain as a whole the evolution of this indicator has been negative: there was a reduction in the number of extensions, going from more than 33,000 operations in 2014 to a level of 30,000 in the last three years.
The entire decade analyzed and with the 2023 forecasts, shows us that Santa Cruz de Tenerife is evolving better than the Canary Islands Autonomous Community and this, in turn, is doing better than the national average, showing significant strength in this indicator of business confidence in the insular area analyzed.
Regarding bankruptcy proceedings in the island area, it is worth highlighting the positive fact, for the Canary Islands and the province of Santa Cruz de Tenerife, of reaching a creditor agreement in a proportion that doubles, in the case of the province, and triples in the case of the Canarian Community, to the national average.
