The best time to buy property in Tenerife
“Now is the best time ever to buy property in Tenerife!”
Courtesy: Tate Properties, Los Cristianos
Yes, you have been hearing this for years, ever since property prices went into free fall in 2008. However, it does seem that 2016 really is a good time to buy residential property!
Everyone agrees that the property sector has recovered from the economic crisis of 2008 when the bottom, almost literally, fell out of the market. We are seeing that credit is starting to flow from the banks and, according to market-leading property reports, Spain’s economy is recovering well, even outperforming both the UK and Germany. House sales are improving and overseas property buyers, particularly from the UK, are returning. So all indications are that the residential sales market has entered a phase of recovery.
The forecast by leading global consultants, CBRE, suggests that, this year, property purchases will increase by a massive 20%, and house prices could go up approximately 5% following the trend in major cities in mainland Spain. Backing that forecast, a report by the National Statistics Institute states that property purchases in Spain rocketed by a whopping 15.8% in February compared to the same month last year, with 34,771 transactions taking place; the highest in any month for the past 3 years. Of that number, 26,941 were re-sale properties, the highest in any month since April 2008, and the trend seems to be growing with March 2016 registering an increase of 0.99%.
In terms of resale home prices, Santa Cruz, in Tenerife is the most expensive of the Canary provinces, yet the 14th cheapest capital in the whole of Spain. House prices in Arona are currently the most expensive, having increased by almost 2.78% since last year.
However, that is not the end of the good news. New construction, which has been suffering for years (while a long way off optimum figures), is still much better than in 2015. There is no better example than Abama Luxury Residences, a ‘des res’ development in south-west Tenerife. Sales Manager Maria Morena is quoted as saying, “Our rate of sales is faster than our rate of construction, and 25% of our international clientele are British.”
Therefore, industry expectations for 2016 couldn’t look more promising; more houses will be sold this year than last, property has never been better value, and house prices are rising, albeit a lot quicker in some areas than others.
Tate Properties Tenerife can offer you help and advice on selling, renting, or purchasing property in Tenerife. Our offices are open 10am – 5pm Monday to Friday and our experienced team will be at hand to answer any of your enquiries. We also now offer property management and long term property rentals.
Why not visit our website: tatepropertiestenerife.com, or call us on 922 794 179. Our offices are located at CC Bahia de Los Cristianos, next to the Sunday weekly market and BBVA bank.