The Tenerife property market has been a popular destination for local and foreign buyers due to its warm climate, beautiful beaches, and vibrant culture. The island has a diverse range of properties available, including apartments, townhouses, and villas, and prices can vary significantly depending on location and other factors.
In recent years, the Tenerife property market has experienced strong demand from buyers, particularly foreign buyers, which has helped drive up prices. However, it is important to keep in mind that real estate markets can be volatile and subject to changes, so it is always a good idea to research and carefully consider the potential risks and rewards before making any investment decisions. Looking to check out property prices in Tenerife? Here’s what to expect:
Property Market In Tenerife In 2022
The Tenerife property market has been in a state of flux. In recent years, prices have been rising again, and it’s expected that they’ll drop slightly. Property prices have risen by about 8% in 2022, up to 11% in Q3. The average price of a home in Tenerife is currently around €454,000.
Low Sales In 2023
The Tenerife property market will experience a decline in sales in 2023 by 11%. The predicted 600,000 in 2022 will drop to about 550,000 next year. The experts agree that 500,000 annual sales are a solid figure that points to a well-balanced industry.
This drop in sales price is expected due to several factors. One factor is Inflation has been increasing steadily over the past few years, with inflation rates expected to be 4.4%. It means that house prices are increasing by 4.4% on average, which means that many people cannot afford to buy houses anymore because they cannot afford the mortgage payments required by banks to cover them.
Prices will Drop In 2023
The Tenerife property market is set to experience a small drop in prices of 1-3% in 2023. It will be the result of several factors, including:
- The slowing economy has led to lower demand for property.
- A rise in interest rates will resun Tenerife. As the market adjusts to the new realities of a changing economy, construction costs will rise, leading to a slowdown in new development. ther than rent them out.lt in fewer home loans being issued and more people being unable to afford their mortgages.
- An increase in rental costs because of Inflation makes it harder for people to buy homes outright.
Construction Projects Will Slow Down In 2023
The pace of building new properties will slow down i
While this is bad news for some developers and investors anticipating more housing being built, it’s good news for first-time homebuyers—the supply of housing on the market is expected to increase as more homeowners decide to sell their homes ra
Effect of Brexit on Property Prices In Tenerife?
National figures show that demand from British purchasers in Spain fell by 16% during Q3 of 2016 after the Brexit referendum; however, it didn’t happen in Tenerife.
An in-depth study conducted with Spanish Property Insight has revealed that Brexit may not be the primary cause of the fall in British demand. Recent data shows that the British pound has begun to recover in value, and so have purchases made by Britons.
As Britons rediscover Tenerife as a lucrative investment prospect, the local real estate market has reflected this shift. There is evidence to suggest that post-Brexit economic uncertainty in Britain has encouraged the consumer who is seeking a haven in Euros.
The British homeowner in Tenerife will not notice any major differences in their situation, whether they are EU citizens. There is no doubt that the rule of law will be upheld, along with protecting private property. The increasing number of non-European investors who have bought the property in Tenerife is aware of this.
As property prices on the island continue to increase, investors from the United Kingdom and throughout the world will be drawn in by the enticing combination of low mortgage rates. A few British citizens may do less after Brexit, which could have little impact on appreciating Tenerife real estate.
Tenerife’s property market has undergone several changes in recent years. Overseas buyers continue to drive property prices skyward. But it appears that this trend is stabilizing, and there may be another period of relative affordability in the next few years. Tenerife will continue to be a stable and attractive property market for the foreseeable future. The island’s popularity is unlikely to diminish, as it delivers what its thousands of annual visitors have come to expect.