Spain is a paradise on earth, enchanting with its incredible nature, the fabulous architecture of the Middle Ages, colorful traditions and hospitality of local people. Spain is characterized by a great variety of all types of recreation: beach-sea, mountain, cultural. The combination of these factors led the country to an honorable third degree in the world after the United States and France for the popularity of the tourist destination. Someone buys here apartments and villas for personal use, there are also those for whom the main thing is to receive additional income from the rental of real estate to vacationers.
Currently, experts on foreign real estate are constantly monitoring prices for housing in Spain, especially in regions that are in high demand, such as the Canary Islands.
The cost of housing in Tenerife
The determination of the cost of housing on the island is affected by many factors. A huge role in the formation of housing prices has a choice of location. So, for the northern and central part of the coast of Tenerife are characterized by quite democratic prices for real estate. And housing in the southern part of the coast (Costa Adeje, Los Cristianos, Las Americas, Los Gigantes) is more expensive, elite. Property prices depend on the category of real estate. At a small apartment prices are 10-20 times lower than a luxury villa.
For example, the prices for a modest apartment-studio of about 55 thousand euros, while a huge chic villa can cost more than 1.5 million euros. Of course, there are lots of offers and an average price category: apartments and houses, the price of which depends on the area, the number of bedrooms and bathrooms, the presence of a terrace, planning.
Additional important factors that affect the pricing of housing are the presence of a swimming pool, parking, recreational facilities, proximity to amenities such as airport, motorways, coast and beaches, golf courses and more. No less significant factor is the quality and well-being of communal, urban infrastructure. Therefore, prices fluctuate in a wide range: for example, apartments where there are two or three bedrooms, a swimming pool, all modern appliances can cost from 250 to 300 thousand euros or more.
Identical with the houses. The price for them is also directly dependent on the location, the total area of the premises, the adjacent area, the availability of a garage and other. The price range is very large. For example, a bungalow – 45 square meters. meters with a small house area and a swimming pool – for 200 thousand euros, and a duplex – for 350 thousand euros, or a bungalow of 120 sq. m. meters – for 400 thousand euros.
Villas and estates – the most expensive type of luxury real estate. However, the prices here are completely different. So, a villa with a building area of only 80 square meters. meters with a chic review and not far from the coastline, can only be purchased for 500 thousand euros. The cost of a huge mansion with a guest house and a private plot will be several times higher, and the cost of a new luxury villa will be estimated at millions.
According to many experts in 2018-2019, the forecasts of prices for the Spanish resort property are directed upwards. A good example of this is the growth in the number of real estate transactions in 2016 and 2017. In the first six months of 2018, the return on investment in Spanish property was 6.1%, which is higher than 5.5%, which was recorded in 2017. So, active buyers of residential real estate in Tenerife are already not only foreigners, but also the local population. Experts of the Professional Association of Real Estate Experts (APEI) have assured that prices for secondary real estate in Spain will no longer decline. According to them, the cost of Spanish housing, after passing a short period of stability, will begin to grow, especially in regions where the supply is limited due to low construction rates. The chairman of APEI, notes that now is the most successful time for buying an apartment or a house in Spain.
Investing in real estate in Tenerife
The most profitable for investment are commercial premises, with the purchase of which you can count on profitability at the level of 7.7%. In addition, from 4.5% to 5.6% increased profitability of garage premises. The main foreign buyers of Spanish resort housing are the British with a share of transactions of 17%. Then come the investors from France, Germany, Belgium. For example, here in some resorts the share of transactions for the purchase of real estate by foreigners is 40%, while the average for Spain is 12%. The average price per square meter in Adeje is 2800 euros. On average, when renting real estate in 2017, you can increase your capital by a fairly high percentage of annual interest.
Obviously, the island of Tenerife attracts buyers of housing not only with its sights and comfortable services, but also with a developed real estate market with the potential for growth, a loyal state policy in obtaining a residence permit. Many factors indicate that now is the time to invest in Spain