Risk-Averse Investors Seek Safe Haven of the Canary Islands

As the chill of winter sets in across Northern Europe, and Brexit-related uncertainty continues to impact on financial markets around the world, risk-averse international investors are heading to the warmth of the Canary Islands in increasing numbers.

Corralejo, on the island of Fuerteventura, and Playa Del Ingles on Gran Canaria moved up to take the third and fourth positions during October in Kyero.com's monthly ranking of top trending Spanish property hotspots.

The relative safety of the Canary Island property market is what makes it particularly attractive to risk-averse investors. The official House Price Index shows that the islands are one of the most recovered regions in Spain. Prices fell less sharply and recovered much more steadily in the Canaries than in the roller coaster markets of Madrid and Barcelona. The relative stability of prices holds strong appeal in the current environment of political and financial uncertainty across much of the world.

The international interest in property across the Canaries has been building throughout the year. Newly release figures from the Ministry of Development (Fomento) show that half of all house sales in Tenerife in Q2 2016 were to international buyers. The figure puts Tenerife on a par with the Balearics in terms of its appeal to overseas buyers.

Interestingly, Tenerife is one of the more expensive Canary Islands when it comes to property. The average price across all islands is €239,000. Tenerife comes in a little higher than average, at €248,000, with prices there up 3.6% in the last year.

Lanzarote is also above average in terms of price, with an annual increase of 5.9% making the average price on that island €295,000. Buyers looking for cheaper homes in the Canaries tend to opt for Gran Canaria, which has an average price of €215,000 (up 6.7% in the last year), or Fuerteventura, where prices have risen by 1.5% annually to an average of €159,000.