Tax incentives announced to increase supply of residential rental housing

  • Canarian Weekly
  • 14-06-2024
  • Business
  • Photo Credit: Stock Image
Tax incentives announced to increase supply of residential rental housing

The Minister of Economy, Industry, and Commerce for the Canary Islands Government, Manuel Domínguez, alongside REF Commissioner José Ramón Barrera, presented new proposals yesterday (Thursday) aimed at increasing the supply of residential rental housing through new tax incentives for property owners.

Last week, Domínguez informed a parliamentary committee about the ongoing process to "promote the industrialisation of construction" to accelerate the building of more residential housing and address the "housing emergency" in the islands.

He emphasised that this initiative seeks to speed up construction timelines while ensuring that new homes are sustainable and of the same quality as those built with conventional materials.

This announcement comes on the heels of recent data revealing a 2.05% decrease in residential home sales in the Canary Islands during the first quarter of 2024, as reported by the Ministry of Housing and Urban Agenda's real estate transaction statistics.

This is against the national trend, as across Spain there were 160,884 transactions up to the end of March, marking a 1.8% increase compared to the first quarter of 2023, which recorded 158,006 transactions.

The new tax incentives are designed to stimulate the residential rental market in the Canary Islands, making it easier and more attractive for investors to build and offer rental properties. The urgency to implement these measures highlights the region's commitment to tackling the housing shortage and providing more affordable options for residents.