Fuerteventura Times: Foreign Investment in the Canary Islands on the Rise
As Fuerteventura continues to attract investors, recent data reveals notable trends in the property market across the Canary Islands, particularly in Santa Cruz de Tenerife.
According to Alberto Martínez Lacambra, Director General of the Technological Centre of Notaries, foreign buyers accounted for half of the home purchases in Santa Cruz de Tenerife in 2024. Furthermore, non-resident foreigners represented 25% of buyers, a significant trend towards increased foreign investment in real estate.
Key Market Insights
Currently, about 40% of homes in Tenerife are acquired by foreigners, emphasized during the launch of the Notarial Statistical Portal, which provides precise housing price data derived from sales deeds. The share of foreign buyers in the Canary Islands has dramatically increased over the years. In 2007, during a peak in property pricing, foreigners made up only 14% of the homebuyers in the Canary Islands, compared to 7.5% nationwide. After a downturn in 2013, this figure surged to 48.8%, stabilizing around 36% as of September 2025.
The province of Santa Cruz de Tenerife is one of the most affected by foreign purchases, alongside the Balearic Islands, Alicante, and Malaga. From 2007 to September 2025, 35.16% of homes in the Canary Islands were purchased by foreigners, with Italians (17.99%), Germans (16.15%), and British nationals (15.18%) leading the demographics.
National Overview
Nationally, the percentage of properties sold to foreign buyers from 2007 to September 2025 is 17.11%. In this broader context, British nationals represented 14.25% of purchases, while 7.49% were German buyers and 7.36% were French.
Challenges for Young Buyers
Martínez also highlighted a concerning trend regarding young homebuyers, noting a significant exclusion in the current market. In 2007, 21.6% of home purchases in the Canary Islands came from buyers aged 18 to 30, compared to a national average of 22.5%. This figure has plummeted to just 6.5% today, against a national average of 9-10%.
He attributed this decline to drastically restricted access to bank credit post-2013, warning that if not addressed soon, young buyers might need to be defined as those aged 18 to 50.
Rising Property Prices
Property prices in the Canary Islands have surged by 94% since 2014, currently exceeding household income levels from 2013 by over 30 basis points. Multi-family housing now averages €2,293—higher than the Spanish average of €2,166. In Las Palmas province, prices have increased by 22% since 2007 and 83% since 2014, while Santa Cruz de Tenerife has witnessed a staggering increase of 107%, with prices climbing from €1,737 to €2,431 per square meter.
Martínez pointed out that property prices in Spain have surpassed nominal levels from 2007, a situation that occurred in the Canary Islands by 2022. With the archipelago among the regions with the highest property prices—alongside the Balearic Islands, Madrid, the Basque Country, Catalonia, and Navarre—he acknowledged the need for increased housing construction to meet growing demand, stating, “We need more construction.”
Overall, while the current price bench reflects a market recovery, adjusted for inflation, the real cost of housing remains 27% lower than that observed in 2007. The sustainability of this upward trend continues to generate discussion among investors and policymakers alike.
Image credit: tenerifeweekly.com
Source: tenerifeweekly.com.
Curated by Fuerteventura Times Real Estate Desk.
