PROPERTY

“According to the latest Kyero Index, prices in three of the four main islands have dropped.” Figures show Fuerteventura has seen the largest drops, with prices down by 9.2%; in Lanzarote values are down 7.7%; and in Gran Canaria they are down 4.8%. The only island to buck the trend last year was Tenerife, with a 7.5% increase.3.

SO WHICH ISLAND?

But back to the original question – which Insula canaria is top dog? The largest is Tenerife and the moratorium the local government issued in 2001 on new touristic builds, has led to more limited supply. Last year, Queen guitarist Brian May visited the island for the opening of the €130 million Great Canary Telescope at the Roque de los Muchachos observatory. It’s one of the most powerful telescopes in the world.

The oldest inhabited island is Fuerteventura, whose popularity has grown rapidly in recent years. Since 1999, its official population has doubled, and there is now a ferry link between the island and the town of Tarfaya in Morocco. Gran Canaria, though the most densely populated island, is often known as the “miniature continent”, because of its varied climate and landscape. The island has nearly 32 Natural Protected Spaces.

The popular tourist island of Lanzarote has been most influenced by the renowned artist and sculptor César Manrique, who is responsible for its many white buildings with green window frames and doors. As a result the island is one of the most unspoilt. Of the smaller islands, El Hierro has garnered recent coverage as next year it’s set to become the world’s first island to be self-sufficient in energy, after the completion of a hydroelectric plant.

Facts & figures

AREA: 7,447km2
POPULATION: 1,995,833
CURRENCY: euro
HOUSE PRICES:Performance varied from a 9.2% drop in Fuerteventura to a 7.5% growth in Tenerife.
AGENTS: Agents are best sourced through Spain’s Asociación Empresarial de Gestión Inmobiliaria (AEGI) or those accredited through the Association of International Property Professionals (AIPP) or Federation of Overseas Property Developers, Agents and Consultants (FOPDAC).
BUYING TIP: Buyer forums report that some unscrupulous letting agents in the Canaries tell buyers their villas are vacant when they are actually rented out, so only use recommended and reputable agents.
TAXES AND BENEFITS:Because the islands are outside the EU fiscal territory and VAT area, some goods, such as tobacco and electronics, are cheaper. A new statute also means that self-employed foreigners in the Canaries will receive the same entitlements as salaried workers, such as paternity and maternity leave, unemployment benefit and sickness pay.
AVERAGE PRICES: The Spanish Property Insight Report found that average prices were about €2,800— €3,000 per m2.
(Figures correct at time of going to press.)

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