Engel & Völkers Licence Partner Hamburg Projektvermarktung > Blog > Canary Islands: Costa Adeje is booming with international property buyers

Canary Islands: Costa Adeje is booming with international property buyers

The spanish Canary Islands are famous for their pristine beaches with white and black volcanic sand, as well as the beautiful subtropical climate. The seven main islands that make up the Canaries are Lanzarote, Fuerteventura, Gran Canaria, Tenerife, La Palma, La Gomera and El Hierro. The islands rank among the most popular holiday regions in Europe, due to their exceptional geographical location in the Atlantic Ocean between the African coast and the Spanish mainland. This makes them very popular too with private property buyers and investors alike. Real estate in the Canaries was in high demand, even throughout the pandemic. This was reflected in the high prices that properties commanded during that period. “Despite Covid-19, prices on the real estate market in the Canary Islands are stable, and the growing excess in demand is driving up prices. It is international buyers, for the most part, who are currently looking for second homes or attractive holiday properties. The pandemic has seen the focus of prospective buyers shift to large villas and contemporary new builds with plenty of outdoor space and sufficient room for a home office and leisure activities,” says Juan Galo Macià, CEO of Engel & Völkers Spain, Portugal and Andorra.

- (Image source: Engel & Völkers Costa Adeje)

Costa Adeje with top prices of up to 3.9 million euros for premium properties

The municipality of Costa Adeje, in the south of Tenerife, has emerged top once again in the ranking of the most exclusive regions in the Canary Islands. The average property prices in the areas of Abama, the Old town and Playa de las Américas rose to 4,500 euros per square metre last year, according to the Market Report for Spain and Andorra published by Engel & Völkers. The property market on the Canary Islands is dominated by international buyers. Foreign clients account for 95 percent of real estate transactions on the island of Tenerife. These clients tend to gravitate towards the regions of Costa Adeje, La Caleta, Abama, Los Gigantes and Puerto Santiago. Since last year, Los Cristianos can also be added to this list. Germans account for 60 percent of buyers, followed by UK citizens at 20 percent, Belgians at 10 percent and Italians at 5 percent. On Gran Canaria, on the other hand, domestic clients account for 20 percent of the market. The 80 percent market share attributable to international clients is made up of German, Swiss, Italian, British and French citizens.  

Tenerife: International buying power sees price highs for homes in prime locations

Abama on Tenerife is once again one of the most expensive regions in the Canary Islands, with top prices per square metre of up to 6,000 euros. Los Gigantes and Puerto Santiago are equally in demand from buyers, while Los Cristianos has seen a rise in property sales over the past year. The most exclusive residential areas are in Costa Adeje district and on Avenida de las Palmitas, where land plots can sell for up to 8,000 euros per square metre. In equally desirable locations in the vicinity of Avenida de la Macaronesia, properties are listed on the market for 7,500 euros per square metre. Such prices make Costa Adeje area one of the most exclusive addresses in the south of Tenerife. The modern infrastructure, excellent amenities and beautiful natural vegetation make Costa Adeje one of the most attractive places to live on the island. Excellent motorway links to the airport and the rest of the island, including recreational facilities such as the spectacular 27-hole golf course designed by the famous architect Pepe Gancedo, afford additional advantages and comforts.

Gran Canaria: Increased demand for large-scale builds with outdoor grounds

The real estate market in the north of the island of Gran Canaria is proving more affordable, with prices that remain stable. Playa de las Canteras, Centro-Triana and Negrín in the Ciudad Alta (Upper Town) are in particularly high demand, while Playa del Hombre, Taliarte and Salinetas are the most sought-after areas with buyers in the northeast town of Telde. Las Canteras Beach is the most exclusive location on Gran Canaria. The average price per square metre here is 2,700 euros. Sales of apartments and detached houses with large natural grounds, as well as additional rooms for working from home, are especially frequent. “We are seeing a trend towards large-scale new builds, abundant space, and villas. Buyers are being increasingly drawn to properties with plenty of outdoor space to pursue leisure activities despite the pandemic, where their quality of life is not restricted in any way,” says José Maria Nuñez, Managing Director of Engel & Völkers Gran Canaria North.

Outlook: International buyers will dominate and drive transactions in 2021

Residential property in the Canary Islands will remain an investment with stable returns. “We witnessed the resilience of the property market in the Canaries last year during lockdown. Now in 2021 we remain confident that the market will continue to see positive development and an increasing number of transactions. The desirable areas in Costa Adeje will continue to see growing demand and rising prices,” Juan Galo Macià predicts.

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