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The Canary Islands remain an attractive destination for foreign investors

foreign investors are drawn to the Canary Islands

When it comes to the purchase of real estate, the Spanish Canary Islands are a destination preferred by foreign investors. So states a report by Euroval’s Institute of Real Estate Analysis (INSTAI) analyzing sector trends in Spain. According to data from the last quarter of 2022, the Balearic Islands (with 34.4% of sales) and the Canary Islands (with 23.6%) are the autonomous communities best valued by this buyer profile.

The figures are not surprising; our real estate management and development firm has witnessed the draw of Tenerife, located in the archipelago, through our own projects. For Northern European buyers, in particular, the year-round climatic stability, when coupled with increasing luxury tourism numbers and high-quality properties, is highly attractive.

Abama Resort Tenerife, one of our flagship projects, has been able to withstand crises as significant as the pandemic of 2020 thanks to a varied portfolio of real estate products for different types of investors. Buyers looking for a plot of land for the construction of a custom villa, people who want to enjoy a second home at any time of the year, or those who want to make a profit from holiday apartment rentals can all find a product that fits. And the investment is made even more secure thanks to the constant draw of being in a golf resort with dining, hotel, sport and wellness services, surrounded by a peaceful natural environment.

Types of buyers

Further analysis of the INSTAI report indicates that the nationalities most interested in Spanish real estate are the Germans (10.4%) followed by the British (9.9%), the French (7.8%), the Moroccans (6.5%) and the Belgians (5.6%). This represents a break with the past, in which the British were long the principal foreign real estate investors in Spain. Another significant trend is the decrease in the number of sales to Russian buyers, who have been at the top of the rankings of foreign investors since 2015. 

When comparing the amount invested per square meter, the list composition changes. According to the Gamerin report for Real Estate Agents (API) and FIABCI Spain, Swedes lead the investments at €5,322 per square meter, followed by Germans (4,668 €/m2) and Norwegians (4,662 €/m2).

In terms of surface area, 36% of the properties acquired by foreigners exceeded 100 square meters. Dutch, British, Germans and Norwegians are, in that order, the nationalities that bought the largest apartments and villas.

Following changing foreign investor and investment product profiles is essential for tailoring real estate development and project management to shifting markets. It’s one of the factors that has allowed Arum Group, as a property developer, to provide solutions that encourage investment in regions as different as Tenerife in the Canary Islands and at La Manga Club in the Region of Murcia.