The Canary Islands have 53,938 tourist apartments, a big number. These places offer 220,409 spots, up 39.7% since November 2022. Now, the islands must manage this growth without hurting local life.
Key Takeaways
- The Canary Islands are home to 53,938 registered tourist apartments, with Tenerife leading at 22,756 properties.
- These rental properties offer 220,409 places, a 39.7% increase since November 2022.
- Certain municipalities have high concentrations of holiday homes, such as Yaiza (22%), La Oliva (21.5%), and Adeje (13.35%).
- The proposed law aims to balance housing rights, business freedom, and the preservation of Canarian identity.
- The Canarian Vacation Rental Association has criticized the new regulations for their restrictive conditions.
Current State of Property Market in the Archipelago
The Canary Islands property market has seen steady price hikes in recent years. Demand for luxury lanzarote villas, top-notch fuerteventura apartments, and exclusive gran canaria estates is on the rise. The local economy is bouncing back from the pandemic, and the real estate sector is showing strength.
With more people working from home, there’s a big interest in properties with comfy living spaces and home offices. This trend is boosting the demand for homes that meet these needs.
Prices in the Canary Islands are expected to keep going up in 2024, but at a slow pace. Coastal and waterfront properties are especially popular, thanks to their stunning views and prime locations. There’s also a growing interest in rural and semi-rural areas for their peace, privacy, and natural beauty.
Distribution of Tourist Properties Across Islands
Tenerife has the most tourist properties, with 22,756 registered rentals. Gran Canaria follows with 13,229, then Lanzarote with 7,577, and Fuerteventura with 7,046. Some areas, like Yaiza and La Oliva, have a high concentration of holiday homes.
Key Market Statistics and Trends
Since November 2022, tourist apartments in the Canary Islands have jumped by 39.7%. This shows the increasing demand for vacation homes and investment properties. Foreign buyers often put down 30% of the property’s value for mortgages.
They take advantage of the islands’ lower property taxes and VAT rates. There are also incentives for eco-friendly properties.
Impact on Local Housing Availability
The rise in tourist properties and investment has raised concerns about housing for locals. It’s estimated that about 10,000 residents have lost their homes due to the market pressure. This highlights the need for a balance between tourism and local housing needs.
| Island | Registered Rental Properties | Share of Total Property Stock |
|---|---|---|
| Tenerife | 22,756 | – |
| Gran Canaria | 13,229 | – |
| Lanzarote | 7,577 | – |
| Fuerteventura | 7,046 | – |
| Yaiza | – | 22% |
| La Oliva | – | 21.5% |
New Regulations and Legislative Changes
The la palma real estate market in the Canary Islands is changing a lot. New rules and changes are coming. These are aimed at making things more sustainable, improving quality, and ensuring fair competition.
Holiday Rental Licensing Requirements
Now, owners must get a Vivienda Vacacional license for short-term rentals. This license ensures properties are safe, clean, and follow zoning rules. Owners have five years to make their properties meet these standards.
After that, regular checks will happen. If a property doesn’t meet the rules, it could be banned from holiday lets for 10 years.
Residential Property Protection Measures
New rules aim to protect local homes. They stop new buildings from being turned into holiday homes too quickly. This rule helps keep homes affordable for locals.
It also limits the impact of tourism on housing costs. All new buildings must stay as homes for at least ten years before they can be holiday lets.
Implementation Timeline and Compliance
The government plans to take away 10,000 holiday rental licenses in four years. This is because many properties won’t meet the new standards. Landlords and investors need to know these rules well.
They should make sure they comply on time. This way, they can avoid fines and bans on their rentals.
«These new regulations are a crucial step towards balancing the needs of the tourism industry and the local community in the Canary Islands. By setting higher standards and protecting residential properties, we hope to create a more sustainable and equitable real estate market for all.»
Canary Islands Real Estate: Investment Opportunities and Challenges
The Canary Islands are a great place for those looking to invest in the luxury canary islands tourism sector. With over 16 million visitors in 2023, the islands are booming. This makes them very attractive for smart investors.
But, the Canary Islands real estate market has its hurdles. New rules have been put in place. These rules are about making tourist spots better for locals and visitors alike. It’s a tricky situation for investors to get through.
Even with these new rules, the Canary Islands still have lots to offer. The luxury property market is particularly promising. It offers good rental income and the chance for your investment to grow.
To do well in this market, investors need to keep up with the latest laws. They should work with local experts and make sure they follow all rules. By understanding the Canary Islands real estate scene, investors can make the most of this exciting place.
«The Canary Islands are a true gem for real estate investors, offering a unique blend of luxury, tourism, and sustainable development. Those who navigate the market’s challenges can reap the rewards of this thriving and dynamic property landscape.»
The Canary Islands are getting more and more attention from around the world. Finding the right balance between investment and local needs is key. Investors who can adjust to the changing rules and focus on the islands’ future will do well in the canary islands real estate market.
Local Community Response and Protests
The rise in properties for tourists in the Canary Islands has upset locals. Around 30,000 people have protested, saying «The Canary Islands have a limit.» They want to limit tourist numbers to control high property prices and improve life for residents.
Recent Demonstrations and Public Sentiment
Protestors want to change the tourism model. They say it’s damaging the islands’ resources and economy. They aim to attract wealthier tourists to keep the economy strong while reducing numbers.
Locals are worried about affordable housing, overcrowding, and the environment. They feel mass tourism is a big problem.
Community Demands and Proposed Solutions
- Implement a temporary cap on tourist numbers to stabilise property prices and improve residents’ living conditions.
- Transition towards a more sustainable tourism model that prioritises quality over quantity, attracting higher-spending visitors.
- Increase investment in affordable housing and social initiatives to support the local population.
- Enforce stricter regulations on holiday rentals and second homes to ensure a balance between tourism and residential needs.
The Canary Islands saw a record 14.1 million foreign visitors in 2023. Locals want to keep the economic benefits of tourism but also protect their quality of life and resources. The protests show the need to find a balance in the tourism and housing market.
Tourism’s Impact on Property Prices
The Canary Islands are a top spot for tourists from all over. But, this has made house prices soar. In Adeje, for example, there are about 4,800 holiday homes, with 25% unused. This has pushed out around 10,000 locals, showing we need better ways to grow.
Tourism’s effect on house prices is complex. 40% of new homes belong to owners with at least five properties. At the same time, small property owners have dropped by over 40% since 2014. This change has greatly affected the local housing market.
Despite a rise in new homes, most are not for those who need them. Only 1,338 homes were built in 2023, and none were subsidised. This makes the housing crisis worse for locals.
«The law has resulted in many property owners being fined for not complying with the new regulations, and has had a detrimental effect on the local economy, leading to a shortage of accommodation for tourists.»
The Canary Islands’ Federation of Municipalities is working with the government to solve these problems. But, experts say we need better rules on rental prices and ways to use empty homes. Finding a balance between tourism and affordable housing is crucial for everyone involved.
Municipal Initiatives and Development Plans
Local authorities in the Canary Islands are taking action to meet the challenges and opportunities in the gran canaria estates and la palma real estate markets. Adeje, a municipality in Tenerife, is starting to regulate holiday rentals. They are looking at what Granadilla de Abona has done.
Adeje’s Regulatory Framework
Adeje wants to keep social housing and properties that don’t follow usual rules. This plan aims to balance tourism needs with local community needs. The area has grown a lot, with 11,000 more people since 2000. To house them, 1,000 social housing units were built.
Social Housing Projects
Adeje has set aside land for new social housing. This is to help with the housing crisis. The plan is to offer rents that are 20-30% lower than the market. Property owners can rent out their homes for up to seven years.
Sustainable Development Goals
The Canary Islands government is working towards the United Nations’ Sustainable Development Goals (SDGs). They are tackling the problem of empty homes. There are 211,000 vacant properties, but a previous effort only managed to sell one.
The Institute Canario de la Vivienda (Icavi) has found land for over 1,200 new homes. But, there are still 25,000 people waiting for housing. The government is also increasing housing by supporting private projects and growing the Icavi team. There are over a thousand homes being built, with projects in Los Realejos and La Orotava.
These plans aim to balance tourism and local needs. The Canary Islands want a sustainable and fair future for the gran canaria estates and la palma real estate markets.
Environmental Considerations in Property Development
The Canary Islands are becoming more popular for holiday lettings and luxury properties. It’s important to think about the islands’ sensitive nature and unique ecosystems. The islands’ volcanic past has created a variety of protected areas and species found nowhere else.
Environmental groups like Ecologists in Action are raising awareness about these issues. They are protesting to highlight the dangers of over-tourism.
Property development in the Canary Islands needs to find a balance. It must meet the demand for holiday homes and luxury properties while protecting the islands’ beauty. Sustainable growth is key. Investors must work with local authorities and environmental groups to avoid harming the islands’ biodiversity.
- The State Waste Plan (PEMAR) 2016–2022 aims to increase waste sent to landfill from 10% to 15%.
- The European Circular Economy package sets a target to reduce landfills to a maximum of 10% of all municipal waste by 2035.
- Considerations for Canary Islands waste management include preventing and reducing waste generation, preparation of waste for reuse, recycling, adding value to waste, and transportation to/disposal in a landfill.
By focusing on sustainability and community involvement, property investors can make the most of the Canary Islands. This approach is crucial for the long-term success of the holiday and luxury property markets.
| Indicator | Canary Islands | EU Target |
|---|---|---|
| Waste Sent to Landfill | 15% | 10% |
| Waste Recycled | 85% | 90% |
The Canary Islands’ unique ecosystems must be a priority in any development plans. This ensures that the pursuit of holiday and luxury properties does not harm the islands’ natural heritage. Sustainable practices and environmental harmony are essential for unlocking the archipelago’s true potential.
Future of Holiday Rentals and Investment Properties
The holiday rental market in the Canary Islands is changing fast. New rules and market shifts are driving these changes. As more tourists visit, the need for holiday homes will grow. But, new laws will change the game, offering both challenges and chances for property owners and investors.
Market Projections and Trends
New laws for vacation rentals in the Canary Islands will start by the end of 2024. This will make fewer places available for tourists, leading to higher demand and prices for legal rentals. More people want private apartments because they can cook, have more space, and plan their days better.
Properties that are green and energy-efficient will become more valuable. They will attract guests who want comfort and care for the planet. With fewer competitors, these properties will see more demand and higher profits. Even though it costs to meet the new standards, the returns will be worth it in a stable market.
Adaptation Strategies for Property Owners
- Make sure your property meets the new rules, like energy efficiency and accessibility.
- Upgrade and renovate to make your property more appealing and high-quality.
- Focus on attracting wealthier tourists who want luxury and eco-friendly options.
- Keep up with the new rules and deadlines to avoid big fines.
- Consider offering different types of stays, like longer rentals or for remote workers.
The future of holiday rentals and investment in the Canary Islands will balance tourism needs and local community interests. Owners who adjust to these changes will be ready to make the most of new chances while keeping tourism sustainable and responsible.
| Key Regulations and Fines | Details |
|---|---|
| Vacation Rental Licensing Requirements | The basic short-term rental licensing process typically costs around €450 plus IGIC. Owners may need to reapply for a rental license if their property received one before 2017. |
| Taxation on Rental Income | Income from renting to tourists in Spain is usually taxed at a rate of 19% for EU citizens and 24% for non-EU nationals on net rental income. |
| Fines for Non-compliance | Fines for operating short-term rentals illegally in Spain can exceed €30,000. Hosts must also pay quarterly VAT of 10% on rental income and register with the Ministry of Interior starting in 2023, with fines up to €30,000 for non-compliance. |
The Canary Islands real estate market is set for big changes, with expat properties spain being especially affected. Owners and investors need to keep up and be proactive to make the most of these changes.
Conclusion
The Canary Islands’ real estate market is at a turning point. It must meet the needs of tourists and locals. New rules aim to make housing fairer and more sustainable.
Investors and property owners need to adjust to these changes. The islands attract buyers from the UK, Eastern Europe, and the US. This drives up prices, but locals are finding it hard to afford homes.
Finding a balance is key for the property sector’s future. It must offer good investment chances while protecting local housing needs.
Exploring the Canary Islands’ real estate can be challenging. You might face issues like not knowing the local market well. Legal and cultural knowledge are also important.
Working with trusted professionals can make buying easier. By embracing these changes together, the Canary Islands can build a strong real estate market. This will benefit both investors and locals.
