The latest mortgage statistics from the Canary Islands are positive with local banks granting 76.2% more mortgages in January 2015 than in January 2014.
The total number of mortgages in the Canaries during January was 2,243.
Mortgage numbers also spiked across the Canary Islands between December 2014 and January 2015 with an 81% increase from 1,238 to 2, 243.
In Gran Canaria, the number of mortgages rose 168,19%, from 393 in December to 1,054 in January.
While this month-to-month rise is largely seasonal, the overall data suggests that the Gran Canaria and Canary Islands property market is gradually gaining strength.
We believe that this is due to two factors:
An increase in available credit: Spanish banks are now moving back into the mortgage market because it is becoming an important source of business to them. With interest rates in Europe so low (the 12 month Euribor rate is currently a lowly 0.2%) few people are putting their savings into the bank.
Buyers who were willing but unable to get a mortgage are now returning to the market.
A rise in demand from local property buyers: We believe that the market in the Canary Islands and specifically in south Gran Canaria, our area of expertise, is still a buyer’s market. However we are seeing a rise in demand from both foreign buyers keen to take advantage of the weak euro and low interest rates, and from local buyers looking for a decent return on their money.
Buyers are taking advantage of rental yields and low mortgage rates to invest in property.
For foreign buyers focused on south Gran Canaria, the market is attractive. Supply exceeds demand and there are plenty of bargains. With the euro weak compared to other currencies, mortgage rates low and tourism booming, it’s an excellent time to buy a holiday home or second residence.
Here at Cardenas Real Estate we continue to list the best properties on the market and to focus on providing our clients with the best possible service. We also offer Gran Canaria property viewing trips with free accommodation if you buy.
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