Canary Island Property for sale - Why invest in Canary Islands property.
Some of our clients buy in the Canaries in order to own a holiday home. However, many are buying as an investment.
There are many areas in the world to buy investment property. We feel the Canaries offer good investment potential due to a combination of the following factors –
- The global position of the Canaries and the associated climate.
- The political regime.
- The economy of the Canaries.
- The scarcity of land.
The global position and climate.
The Canaries form a group of seven islands, located in the Atlantic Ocean near the Tropic of Cancer off the African coast of Western Sahara. The Canaries stretch in an East-West 500 km's arch. The latitude of the Canaries is in the subtropical zone, similar to that of Orlando, Florida. The climate of the Canaries, however, is moderated by the surrounding ocean.
The waters of the Atlantic Ocean here are rather cool because of the cold Canaries current; as a result summer temperatures rarely rise uncomfortably high, while winters are mild. The warmest days in summer occur when hot, dry air is drawn out from the Sahara desert and reaches as far as the islands. However, when the winds reach the islands its passage across the cool ocean water means that they are more moist and have lower temperatures. The weather may be unsettled for a few days at a time in winter, under the influence of an Atlantic depression but such stormy and wet periods are not frequent. Clouds may occur in the summer months, which are usually dry and sunny with few uncomfortably hot days.
The northern shores of the Canary Islands, being more exposed to the predominant northeast trade winds, are rather wetter than the sheltered southern coasts. Daily sunshine hours range from a general average of six in winter to as many as eleven in the summer months.
This happy coincidence of events gives rise to an all year round climate, which is excellent for renting.
The political regime.
We are totally convinced that the political stability of a country is a fundamental consideration for any overseas investor. The Canary Islands are an integral part of the kingdom of Spain and have been for centuries. The Canaries form an "Autonomous Community" within the Kingdom of Spain. The islands have their own Government, Parliament and Administration, established by the Statute of Autonomy of the Canary Islands. As a part of Spain, the Canaries are also part of the European Union. However, the islands enjoy some exceptions in the fiscal and economic area. The Supreme Court of Justice exercises the judicial power. Appeals against its judgments are to the Supreme Court and the Constitutional Court of Spain.
In summary, then, the Canaries are part of a stable political democracy, which we feel is helpful environment for an international investment in property.
The economy of the Canaries.
The main economy of the Canaries is based on tourism. This makes up 32% of gross domestic product. The islands receive around 10 million tourists annually. Tropical crops such as bananas and tobacco are grown mainly for export to Europe. Construction accounts for around 20% of GDP. The economy is estimated to be worth 25 billion euro (2001 GDP figures). The Canary Islands experienced continuous growth during a 20 year period, up until 2001, with a rate of approximately 5% annually. This growth was fueled mainly by huge amounts of direct investment from abroad mostly to develop tourism real estate (hotels and apartments), and European Funds (near 11 billion euro in the period from 2000 to 2007), since the Canary Islands are labeled Region Objective 1 and became eligible for euro structural funds.
In summary the Canary Island economy is relatively stable and is geared to the tourist market which is ideal for property rentals.
The scarcity of land.
The archipelago that makes up the Canaries consist of seven small islands. There is therefore a restriction on the amount of land available for development.
Summary. In a nutshell for the international property investor, Canary Island investment property offer the following benefits –
- A pleasant all year round climate that attracts both holiday and seasonal rentals.
- An EU member with a mature and stable democratic political regime for added investment security
- An economy which is also stable and geared to tourism to maximise returns from rentals and long term capital growth.
To discuss an aspect of investing in the Canaries please do not hesitate to contact us on
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