We are delighted about the contribution of Luca Adami, who shares his market knowledge as an investor in Gran Canaria / Las Palmas.
Why invest in a house in the Canary Islands?
The Canary Islands – and in particular the island of Gran Canaria – are proving to be the best investment in the European real estate market every year. After the difficulties caused by the SARS-CoV-2 pandemic, the Spanish government has invested resources in the region to revitalize its tourism potential: Las Palmas de Gran Canaria is the city that has benefited the most from these resources. Today, tourists return with enthusiasm to visit the beaches and forests of Gran Canaria, both known for their long nature walks. The south of the island has also returned to its former glory!
Unfortunately, not everyone has survived the recession, which is why the capital Las Palmas is considered a symbol of economic security compared to faltering areas on the rest of the island. Suffice to say that all embassies are located in Las Palmas, as are the government offices for communication with the mainland. Especially for foreigners who want to settle here, it is very useful to know that the police center for applying for residence documents is just a stone’s throw away from the Centro / Fuente Luminosa neighborhood, where I have my house. It’s extremely easy to get around by public transport or on foot, as the entire city has no more than 300,000 inhabitants… but you have to bear in mind that the island of Gran Canaria receives more than 4 million tourists every year, so it is essential to have a base in the city!
Special economic zone in the Canary Islands
For many years, this has also become an attractive investment for foreigners who want to benefit from a favorable currency exchange as well as for Europeans who want to take advantage of the Special Economic Zone in the Canary Islands! Oh yes! The cost of living in Las Palmas is lower than in the rest of Spain and Northern Europe due to special agreements between the Cabildo and the national government! This means that there are excellent investment opportunities, especially in the real estate sector, which never stands still here! The main construction companies on the island are companies such as Lopesan and Acosta Matos, but individual investors also find it advantageous to purchase one or more apartments in this area, both for private vacations and for renting out. In this context, it should be noted that local rents are relatively low in contrast to tourist rentals, which are subject to the guidelines of Viviendas Vacacionales and have higher daily rental rates. Sometimes these are even higher than hotels, depending on the facilities and services offered.
For real estate, there is the possibility, albeit regulated, of setting up an Airbnb or a tourist hostel, with prices based on tourist rentals. The rent for non-tourist properties is on average around 400-500 euros per room or 1200-1500 euros for an apartment with adequate living space. All this is calculated on the basis of the cost of acquiring real estate per square meter, which has always increased over the years (with the only exception in 2020 due to the economic consequences of the pandemic). Today, the purchase price of a property in Las Palmas is around 2600 euros per square meter. The apartments I offer for sale have an area of 150 + 50 square meters and have independent entrances. They are located directly in the Centro / Fuente Luminosa area, ideal for those who want to move to the island and live less than a hundred meters from the government offices. The central area towards Fuente Luminosa is considered a prime location in the city, due to its numerous offices and services. This area has a dense infrastructure of doctors, private clinics as well as schools and kindergartens. The gastronomic offer in Fuente Luminosa is high and leaves hardly anything to be desired.
For further information or investment inquiries, please contact Luca Adami: info@lucadami.com
