New Homes on The Rise in Tenerife

One of Spain's leading mortgage valuation agencies has recently released a survey which shows the price of a new home in the Canary Islands has risen in value by 8.5 % over the last year. The survey further reveals that specific regions within the archipelago have emerged as 'new home hot spots' having dramatically outperformed other areas of mainland Spain.

The largest of the Canary Islands Tenerife has recorded an increase of 10.1%. These price rises appear to reflect the the fact that buildable land is in limited supply. Marry this with the Government's 'building ban' on tourist resorts and the supply of new homes is more limited.

The survey also suggested that prices in the Canaries are undervalued compared with other Spanish 'sunspots'. Despite the fact that, Tenerife in particular, enjoys year round sunshine and millions of tourist visitors every year the average cost of a a new home is still under 1,900 euros per square mtre. This makes The Canary Islands the fourth cheapest region in Spain for new homes behind Extamadura, Murcia and Galicia. Regions such as Andalucia, which encompasses the resorts of Costa Del Sol and the holiday islands of the Balearics are far more expensive, costing upwards of 2,142 and 2,763 euros per square metre respectively for a new home, however, all these regions of Spain cannot compete with the 52 weeks of sunshine enjoyed in The Canary Islands.