With Brexit looming large, should you sell your property in Canary Islands, Spain? The Canary Islands are an autonomous community of Spain, which are just off the coast of Morocco. These islands have become everybody’s favourite vacation spot. A lot of British expats own second homes or retirement homes here.
Canary Islands first became noticed as a top destination for tourism and overseas property following the growth of passenger air travel from Britain to these islands, especially to Tenerife, which is the most popular island in the Canaries, as well as the largest.
Five million people visit the Canaries every year, and of them, a record 1.6 million are from Britain. 560,000 Germans visit the islands for a well earned break from work as well.
Tenerife has two large international airports. Properties here are always in great demand especially those on the northern coast near Puerto de la Cruz. Properties in Costa Adeje in the southwest of Tenerife are popular as well.
There is a great variety in the properties sold here. They range from just $130,000 for a cosy apartment to beachfront villas that sell for $4 million or more. There is a feeling that the 2008 economic crisis in the Canary Islands, is finally over and things are back to normal yet again. The recovery actually began in 2014 and has continued into 2016.
Ashley Smith, the sales manager at Clear Blue Skies in Tenerife said in an interview with the New York Times, “Certainly over the last 10 to 12 months, the market has been stronger here. I think the floor was probably last year. Sellers are less willing to negotiate, and we’re achieving full asking price on more properties. Over the last few months it’s been great to see a lot of new development.”
Iris Boy Peña, who heads the Costa Adeje office of Engel & Voelkers was not as optimistic. She said, “Right now, I have the feeling that prices are slowly, slowly getting stable again, especially in the most-demanded areas. I think they will slightly rise in the future, maybe in the next five years, but not to the level that we had in 2007.”
So who buys properties in the Canary Islands? Britons, as you might expect are the most prominent buyers in the Canaries, closely followed by Germans. Belgians, Dutch, Scandinavians and Russians are other prominent buyers here. Even the local Spanish buyers have made a comeback in the property market in the Canaries.
There is a lot of fear in Tenerife and the other Canary Islands over Brexit and what it might mean. As readers are aware, there is going to be a national referendum on June 23, just a few weeks from now in Britain, which would decide whether the UK remains a part of the European Union or not.
Peter Esders of Judicare, a lawyer who specialises in overseas property investments, expressed his apprehensions about Brexit in an interview with the Telegraph: “If we have an exit, the right to buy property, work, retire and receive health care would disappear. It may be necessary to put into place treaties, at least to allow those who are already in the system to continue as they are.”
Kate Everett-Allen, a senior partner at Knight Frank International Residential Research concurred with the assessment, but said that Brexit wouldn’t be the only factor influencing the decision of investors looking to buy properties in the Canary Islands: “While the referendum will undoubtedly influence buyers’ decisions when looking to purchase in Europe’s key second home destinations, it will be one of several factors they will consider, including underlying market conditions.”