Holiday Housing in the Canaries Declined 30%

14/04/2014 – Finanzas

Average fall in Spanish holiday property prices in the Balearic and the Canary Islands marks 30.8% compared with the values recorded before the recession had arrived. The data has been gathered by Tinsa, an appraisal firm, and it also indicates that the holiday sector experiences certain recovery due to strenghtened foreign investment.

(…) Taking into account holiday housing price adjustment, the most acute drop-offs have been observed on the Mediterranean Coast (-48.8%), compared to the national mean of 39.7%.

The most significant backlog falls are found on the Andalusian and the Catalonian coasts with 50%-off prices registered in the first quarter in Calafell, Peñíscola, Ayamonte, Benalmádena, Estepona or Roquetas de Mar. Similar figures hit Blanes, Torredembarra and Torremolinos.

However, in the so-called “Golden Triangle” (“Triángulo de Oro”) in the Costa del Sol coastline there was observed a positive tendency of 4.8% rise in Marbella or of 1.3% in Manilva, and of 3.8% in Platja d’Aro in Catalonia.

Moreover, the aforementioned areas have absorbed the biggest quantity of stock and showed improvement in new construction houses.

Additionally, in Girona, Las Palmas, Santa Cruz de Tenerife and Alicante, property purchase by foreigners constituted 30% of the total. In more detail, in Las Palmas they represented 30.7%, whereas in Santa Cruz de Tenerife they reached 40.1%. In Alicante they make 51.5% of all. Also, the construction permits shot up by 57% in the city, compared to the figures from 2012. They are 2.148 dwellings, juxtaposed with the 41.596 units in 2006.

In fact, the Canaries and the Baleares and the Malaga and Alicante provinces amass 75% of all purchases conducted in Spain by non-residents.

According to the latest data published by the Ministry of Development, foreign purchase rose by 12.8%, while the non-resident acquisition reached 13.4%.

 

 

Original article: Finanzas (EFE), Invertia (by E. Ruiz-Hidalgo)

Translation: AURA REE

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