The real estate market in the Canary Islands witnessed a notable downturn in the second half of 2023, particularly in transactions involving foreign buyers, reflecting broader trends observed across Spain.
The Islands experienced a substantial 21% decrease in property transactions involving foreign buyers, totalling 4,280 deals. This decline aligns with the broader trend observed nationwide, where foreign transactions dropped by 10% to 63,183.
However, foreign transactions still represented a significant portion of all property sales and purchases in Spain, accounting for 20.9%, slightly up from 20.6% in 2022.
Data from the General Council of Notaries highlights that this period marked the second consecutive semester of year-on-year declines, following a 7.2% decrease in the first half of the previous year, disrupting the growth trend seen in 2021 and 2022.
Foreign residents were responsible for 57.3% of these transactions, indicating a 7% decrease from the previous year, while non-residents accounted for the remaining 42.7%, which saw a more substantial decline of 13.6%.
The average price per square metre for properties purchased by foreigners in the second half of 2023 stood at €2,175, representing a modest 4.1% increase from the previous year.
Regional disparities were evident, with foreign property sales declining in twelve regions of Spain while rising in five others. Notably, Asturias led with an 11.5% increase, followed by gains in Cantabria, La Rioja, Murcia, and Castilla la Mancha. Conversely, the steepest declines were observed in the Canary Islands, Balearic Islands, Andalusia, Catalonia, and Navarre.
Once again, Brits led the way in foreign property purchases, followed by Moroccans and Germans. However, purchases by Norwegians and Swedes experienced the sharpest declines, while Ireland, Ukraine, and Russia recorded increases.
Among different nationalities, the Polish, Russians, and Chinese witnessed the most significant growth in transaction prices, while Colombian and Irish buyers experienced the largest declines. Swedes, Americans, Germans, and Swiss buyers paid the highest average prices per square metre.
Overall, the decline in foreign property transactions in the Canary Islands during the latter half of 2023 reflects a broader adjustment in the Spanish real estate market, influenced by various economic and global factors.
