Canary Island Property Prices Rise 12%; Sales Fall 29%
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In April, non-commercial property sales dropped by 29% in the Canary Islands compared to last year. But, the average price of these properties went up by 12.6%. The General Council of Notaries released this info on Wednesday. It also shows that signed mortgages fell by 22.3%.
In April, the amount of home and holiday home sales dropped by 20.7% from last year. Only 49,639 were made. The average price per square metre increased by 0.9% to 1,622 euros. This is the national trend.
The number of apartment sales dropped by 20.2% from last year to 38,269. Also, single-family home sales decreased by 22.3% to 11,370.
In April of this year, the cost of apartments decreased by 0.2% compared to last year. One square meter of an apartment costs about 1,787 euros. The price of single-family homes, however, saw an increase of 1.5%. On average, a square meter of a single-family home costs 1,308 euros.
The Murcia region had the least decrease at -9.7%. Other regions fell below the national average, like Aragon (-20.4%), Valencia (-15.9%), Extremadura (-14.8%), Castilla-La Mancha (-12.8%), Galicia (-10.2%), and Castilla y Leon (-9.8%).
Sales dropped the most in La Rioja, the Canary Islands, Madrid, the Basque Country, Navarre, the Balearic Islands, Andalusia, Asturias, Catalonia, and Cantabria. These regions had a drop that was higher than the national average. The drop in La Rioja was the biggest, at -33.6%. The Canary Islands had the second biggest drop, at -29%. Madrid was third, at -28.9%. The drop in the Basque Country was -25.1%. Navarre had a drop of -25%. The Balearic Islands saw a drop of -23.7%. Andalusia and Asturias both had drops of -22.4%. Catalonia had a drop of -21.9%. Cantabria had a drop of -21.4%.
Castile-La Mancha, Aragon, the Canary Islands, and Asturias experienced the biggest property price hikes in April. Prices in Castile-La Mancha rose by 20.3%, followed closely by Aragon with a 17.2% increase. The Canary Islands saw a 12.6% jump, while Asturias recorded an 11.7% increase.
In April, the number of mortgages in Spain went down by 31.9%. There were only 21,884 transactions reported. The average amount of the loans also decreased by 6.4% compared to last year. This means it is now 142,306 euros. The percentage of purchases financed using mortgages was at 44.1%. The average percentage borrowed was 70.6% of the purchase price.
The number of mortgages for buying houses hasn't grown for five months. Some places have seen negative rates of more than 25%. These places are the Basque Country, Andalusia, Castile-La Mancha, Asturias, Galicia, and the Valencian Community.
