Why is Gran Canaria the ideal place for living and investment?

General information about the Canary Islands

The Canary Islands are a group of seven large and several smaller islands located in the Atlantic Ocean. This archipelago is part of Spain and includes two regions: Las Palmas and Santa Cruz de Tenerife. The unique location of the Canary Islands, situated between Europe and the northern coast of Africa, has shaped their characteristics and contributed to their popularity among tourists. One of the most significant islands in the archipelago is Gran Canaria, which boasts highly developed infrastructure and services.

Tourism in Gran Canaria

Gran Canaria attracts millions of tourists every year, standing out among the other islands of the archipelago. The largest number of visitors has come from Northern Europe, including countries such as the UK, Germany, Sweden, and Norway. In 2016, Gran Canaria set a record by welcoming around 4.2 million tourists. Many Europeans consider this island as a place to spend the winter and purchase a second home.

Attractiveness for investors

The reasons for the growing interest of investors in Gran Canaria are due to a variety of factors that make this island attractive. First and foremost, its climate should be noted. The temperatures here are mild and the conditions are comfortable, which are considered among the best in the world. The island boasts about 300 sunny days a year, with an average temperature of around 25 °C. Many Europeans see moving to the Canaries as a great option for improving their health and quality of life.

Safety and comfort

Safety is another important advantage of living in the Canary Islands. Unlike other tropical regions, there are no dangerous wild animals or poisonous insects here. Additionally, the stable political situation and low crime rate give residents a sense of confidence and peace of mind.

Cultural diversity and taxation

The diversity of cultures and languages enriches the lives of the locals, which also makes the islands more attractive to new citizens. The tax system here offers some of the lowest VAT rates in Europe, at just 7%, while in mainland Spain the rate reaches 24%.

Advantages of EU membership

The Canary Islands, as part of the European Union, offer their residents additional benefits, such as free movement across the countries of the continent. There are also special offers on flights for the islanders. The local healthcare service is known for its high quality of care and provides services free of charge to all residents.

Golden Visa Program

There is also an interesting "Golden Visa" program that allows you to obtain residency in Spain by investing in real estate, starting from an amount of€500,000Traveling to Gran Canaria from most European countries takes only three to four hours, making the island a convenient choice for both permanent living and short trips. Gran Canaria covers an area of 1,560 square kilometers, which makes it easy to get around the island.

Quality of life in Gran Canaria

The quality of services in Gran Canaria meets European standards, offering a high level of medical care, developed infrastructure, and comfortable living conditions. All these factors make Gran Canaria an attractive destination for both tourists and investors from around the world.

Conclusion

The combination of a warm climate, safety, a multicultural environment, and well-planned infrastructure makes this island an ideal choice for comfortable living and relaxation.

Capital of Gran Canaria

On the picturesque island of Gran Canaria lies its capital, Las Palmas, the largest and most populated city among the Canary Islands. This city offers modern residents all the necessary amenities, creating ideal conditions for a comfortable life.

Educational institutions

A significant part of the educational infrastructure in Las Palmas consists of seven reputable educational institutions recognized at the national level, among which are notable ones such as:

• British School of Gran Canaria
• Arenas School
• Arenas International College
• Brains School
• Arenas Sur School
• School Las Palmas
• German School

Real estate and investments

Real estate in Gran Canaria offers lucrative investment opportunities. Its convenient geographical location and mild climate make this region particularly attractive for those interested in investments, ensuring stability and good returns on housing investments.

Considering the wonderful microclimate, the flow of tourists here does not stop throughout the year. The summer season typically attracts families, while during the winter months, the island becomes popular among affluent retirees from many European countries.

Social and cultural contingent

Despite the presence of various entertainment activities, Gran Canaria is not a popular youth hangout; for this, you can look to other regions of Spain more suited to an active nightlife. The main contingent of guests are:

• Families with children
• Wealthy European retirees

This reflects the socio-cultural nature of the place for recreation and living for those who invest here.

Lending for foreign citizens

Foreigners can take advantage of loans offered by local banking institutions. Depending on various factors, including the appraised value of the property being purchased, the loan amount can be approximately50-60%with the possibility of increasing to65-70%.

The loan term usually ranges from10 to 30 years...which depends on the client's age. The interest rates offered by financial institutions vary from...4% to 5.5%The terms regarding the change in the interest rate are outlined in the loan agreement, and the deadlines for monthly payments are also specified.

Limited construction opportunities

In Gran Canaria there is limited space for new development. The most desirable coastal areas are already densely developed, making it difficult for new investment in this area.

In recent years, there has been a decline in the number of safe tourist destinations, which has led to an increased interest in the Canary Islands as one of the best places for vacation and permanent residence.

The impact of the economic crisis

The economic crisis has affected the real estate market in Gran Canaria, especially in areas that are not tourist-related. In some segments, housing prices have dropped by more than40%. Nevertheless, the southern neighborhoods and central parts of Las Palmas showed resilience and small price fluctuations.

Positive trends in the real estate market, recorded in 2016, continued into 2017, overcoming all difficulties. The volume of real estate transactions increased by3.1%Compared to the same period last year, this is only a positive sign for the region's investment climate.

Changes in the real estate market

In recent years, the real estate market has undergone significant changes. In particular, sales of new residential properties have decreased by 8.5%, which is linked to a decline in the share of new constructions. In contrast, there is a growing interest in secondary housing, with sales increasing by 6.2%.

Creation of new companies

Moreover, from the beginning of the year until May, 1,376 new companies were registered, which is the highest result since 2008. The government report on the Canary Islands also indicates a rise in the level of "business confidence," which has been gradually increasing and reached its highest point since early 2013 in the first quarter of 2017.

Return on investment

According to a large-scale study conducted by the Spanish resource Idealista, a leading player in the domestic real estate market, the profitability of investments in the housing market in Spain significantly exceeds the yield of 10-year government bonds, being three times higher even in the most unfavorable scenarios.

Investments in short-term rental housing also showed positive trends, increasing by 7.3% in the second quarter of 2017.

Gran Canaria as a profitable destination

According to research, Gran Canaria stands out as one of the most profitable destinations for real estate investments in the country. The capital city, Las Palmas, has shown the highest yield in the residential real estate market, reaching 8%. Following it are:

• Lied:7.7%
• Huelva and Alicante:6.8%
• Barcelona:5%
• Madrid:5.8%

Different types of properties also show decent results: investments in garages yield an average return of 8.4%, commercial spaces 8.8%, and office buildings 6.6%.

Real estate offers in Gran Canaria

The real estate market in Gran Canaria is very diverse. It is possible to find affordable properties for up to 70,000 euros, ideal for long term living or investment, as well as luxury apartments and houses that can cost up to millions of euros, offering complete privacy and magnificent views.

Additionally, there are interesting offers starting from 90,000 euros, suitable for short-term rentals and providing stable income. It is important to note that the location of the property near the ocean significantly affects its price, both for sale and for rent. The most expensive and sought-after areas are in the tourist south and in the very center of the capital along with its suburbs.

Business opportunities in the Canary Islands

For those who want to combine life in this amazing place with a small business, the Canary Islands offer numerous advantageous opportunities. This could be:

• Launching a new business;
• Buying a going concern;
• Acquisition of a land plot for construction;
• Purchase and restoration of buildings for residential or commercial use.

General description of Las Palmas

Today, Las Palmas de Gran Canaria, the capital of the island of the same name, is a large and multicultural city with a highly developed infrastructure. In close proximity, there are famous beaches, among which Las Canteras and Las Alcaravaneras stand out, as well as the Port of Puerto de la Luz, which is recognized as one of the most active in the world.

The city is well suited for both permanent residence and vacations, including city tours and relaxation on the beach. The coastal zone, which is a flat area, is ideal for strolling and is also equipped with a network of bicycle paths, ensuring comfortable travel in the central areas.

Las Canteras Beach

Las Canteras Beach, stretching for 3.1 kilometers, has received numerous awards and quality ratings. The southern part features areas that attract surfers and wave enthusiasts, while the northern part remains safe due to a two-kilometer natural reef that protects it from strong waves — making it a great spot for family outings and elderly visitors.

The beach is also equipped with a ramp for people with disabilities, showers, and several playgrounds. Young people will find plenty of activities:

• Sports schools offering courses in surfing, diving, and yoga.
• Affordable lodging options during the summer season.

The nightlife in Las Palmas is represented by a small number of quality nightclubs, where you can have fun and relax after a long day.

Investment opportunities

Experts emphasize that the capital of Gran Canaria is among the leading positions in the list of the most interesting, albeit expensive, regions for investment. Recently, there has been an increase in tourist activity and demand for short-term rentals, especially after the pandemic, which has heightened interest in the real estate market.

Real estate prices

The most attractive areas for rent are the plots along the coast, between the lower part of the La Isleta peninsula, Las Canteras beach, and Las Alcaravaneras. Prices per square meter vary depending on the location:

• Housing with an ocean view:from 3500 to 5000 euros per square meter.
• Objects without a sea view:from 2000 to 3500 euros per square meter.

For example, a small studio ranging from 25 to 55 square meters can cost between 80,000 and 180,000 euros, while the daily rental can be from 40 to 55 euros.

Elite apartments and villas

Elite apartments are typically located in the city center, just a few minutes' walk from the beach. Villas and houses are situated in surrounding areas like Tafira and Santa Brígida, which can be reached in 15 minutes. With the increasing popularity of this destination, further price growth and interest from investors can be expected, making Las Palmas an ideal region for real estate investments.

North coast of Gran Canaria

The northern coast of Gran Canaria, with its charming settlements such as Agaete, Gáldar, and Sardina del Norte, is influenced by cool winds coming from the northeast. These trade winds help maintain a stable climate, providing pleasant humidity and low cloud cover. The unique nature of this region has contributed to the formation of a distinctive ecosystem with abundant vegetation, making this area special. The northern coast has also become a starting point for the historical development of the island, confirming its status as a significant cultural center.

Climate

The climate in this part of the island has its own characteristics: it is more humid and cooler compared to the southern part. Rainfall is more frequent here, especially in the winter and spring months, from January to May. The coastal areas are distinguished by picturesque steep cliffs, cozy villages with vibrant Spanish culture, beautiful fishing ports, and natural beaches with black volcanic sand.

Convenient location

The northern coast is just 25 kilometers from the capital, making it an ideal spot for those looking to escape the noisy crowds of tourists and enjoy some solitude. This sounds like a real find for nature lovers and those interested in local culture. It's also worth noting the affordable prices for vacations in this region, which makes it appealing to tourists looking to save money.

Cities of the northern coast

Ahaete

Agaete, a small town in the northwest of Gran Canaria, is famous for its Mediterranean style of architecture. Here you can find many historical monuments, archaeological finds and cozy restaurants serving local cuisine. There are also crystal clear bodies of water in the area where it is a pleasure to refresh yourself. The nearby fishing village of Puerto de las Nieves will also appeal, with regular ferries to other islands.

Galdar

Gáldar, with a population of around 25,000 residents, is located at the foot of the extinct volcano Pico de Gáldar. This city has significant cultural importance and was the residence of the indigenous rulers of the Canaries, which is reflected in numerous archaeological finds. Today, Gáldar has become a popular destination for tourists due to its rich cultural heritage and unique architecture. In the historic center of the city, you can see many ancient buildings and interesting museums.

Sardine of the North

Particular attention is drawn to the fishing port of Sardinia, known for its romantic charm and seclusion. Real estate prices vary depending on location, proximity to the ocean, and the condition of the properties. The cost per square meter of real estate in the coastal area typically ranges from€1000 to €2500In these northern regions, there are also opportunities to purchase land for the construction of a country house, hotel, or residential complex.

Southern coast of Gran Canaria

The southern part of Gran Canaria, including areas such as San Agustín, Maspalomas, Playa del Inglés, and Meloneras, has become the most dynamically developing and sought-after tourist zone on the island. Interestingly, back in the 1960s, this picturesque stretch of coastline had almost no population due to a lack of water necessary for agriculture. With the onset of active tourism growth, the region underwent a radical transformation in less than two decades, turning into one of the major resorts that attract sun-seeking vacationers from all over the world.

Climate and weather

The climate of the southern zone is known for its hot and dry nature; rain is a rarity here, and weather fluctuations throughout the year are virtually imperceptible. The temperature difference during the day usually does not exceed10°CThe southern coast is a real oasis for sun worshippers and beach lovers. For sun worshippers and beach lovers, the south coast is a true oasis. It is important to note that the area is only 15 minutes by car from the nearest airport and 35 minutes from the island's capital, making it accessible to travelers.

Attractions

Among the main attractions in the south are:

• The majestic dunes of Maspalomas, covering an area of325 hectares
• Playa del Inglés beach, which stretches for more thanthree kilometers

This area can be conditionally divided into several different segments.

Arguineguín is a small town in the Canary Islands that was recently known as a fishing village. Today, this settlement, while still a port, has become a popular tourist destination, maintaining its historical appearance and traditional way of life. In Arguineguín, you can find many cozy seafood restaurants and lively fishing bars located along the waterfront.

Puerto Rico is the perfect place for a family vacation.

Puerto Rico, once a small fishing harbor, has undergone significant transformation over the past few decades, turning into a luxurious and attractive resort for tourists. This place is especially favored by families with children, as Puerto Rico offers all the necessary amenities for a comfortable family vacation. The cozy bay, surrounded by picturesque cliffs, is home to numerous comfortable hotels and apartments.

History and modernity

Once there was a fishing village here, which gradually gave way to modern buildings. Now the port is divided into two zones and is located on both sides of the beach. Large vessels do not get stuck in the harbor; it is actively used by yachts, catamarans, and pleasure boats.

The long promenade stretching from Puerto Rico to the beach with azure waters and golden sand, Playa de Amadores, is about one kilometer long and is perfect for walks. Along the bay, there are various hotels and apartments. Playa de Amadores has...“Blue Flag”...which confirms the high quality of the water and the level of services provided. For people with limited physical abilities, the following accommodations are available:

• special bathing chairs
• wide paths
• barriers for comfortable presence in the water

Puerto de Mogán is a picturesque resort.

Puerto de Mogán is a picturesque resort located on the southwestern coast of Gran Canaria and is the last in the series. Due to its canals and bridges, which are neatly arranged along the narrow sea bays, this area is often referred to as“Little Venice”Cozy restaurants and bars line the waterfront, while the old part of the city features picturesque Mediterranean houses and cottages that climb the slopes of the mountains. Puerto de Mogán is a major harbor where yachts come in from the Atlantic Ocean to the Caribbean Sea. The narrow streets of this resort are immersed in the greenery of blooming plants, creating excellent conditions for walks.

Real estate and investments

Due to limited space and a unique atmosphere, this area is considered one of the most expensive for real estate purchases. The average price per square meter can reach3500 eurosIf you are planning to purchase real estate and want to understand the tax issues, it makes sense to contact a reliable real estate agency. Such specialists will help you find the best option and provide full support throughout the transaction. Usually, all agency service fees are paid by the property owner and included in the total cost of the property. This approach significantly simplifies the process and guarantees the safety of transactions, which is especially important when buying a home in such an attractive region.

Buying real estate in Spain

In Spain, the purchase of real estate is carried out under clear and transparent conditions, which eliminates the possibility of unexpected additional fees that agencies may sometimes charge buyers. The main financial obligations that fall on buyers include notary fees and taxes.

In total, these costs amount to about 8% of the price set in the contract. The following expenses are included in this list:

• value-added tax;
• tax on notarial services;
• the fees of the notary and the law firm;
• registration fees.

If the buyer decides to take out a mortgage, the expenses may increase up to10%In this case, additional costs also arise, such as:

• bank fees;
• fee for property appraisal by an independent expert;
• notary services;
• mandatory property insurance required for obtaining a loan.

Expenses for maintaining real estate in Gran Canaria

The cost of real estate in Gran Canaria can vary significantly and depends on a number of factors. The most affordable options are apartments in simple multi-family buildings. The new owner should consider regular expenses, including:

• utility payments;
• contributions for the maintenance of the homeowners' association (HOA);
• property tax (IBI);
• expenses for electricity and water supply;
• local fees for garbage collection and street lighting.

Responsibilities of private homeowners

Owners of private houses, villas, and country estates are not required to create a homeowners' association, but this does not exclude the possibility of other mandatory expenses. Such costs may include:

• garden care services;
• pool maintenance;
• security;
• other similar expenses.

If the property is being rented out, it is important to also consider additional payments. It is recommended to formalizeproperty insurance (home insurance)Especially if the owner is absent; internet expenses should also be taken into account. It is important to remember the income tax for non-residents (IRNR), which is mandatory for owners who do not reside in Spain. This tax has a complex calculation system and is based on several factors, making its calculation unique for each property.

Management company fees

Owners should also consider the costs of services from agencies or management companies that handle rentals, which average around20%In long-term rentals, these fees are most often covered by the tenants. Generally, the costs for utilities fall on the tenants, although various agreements are possible.

The responsibility for troubleshooting in the property, costs for preparing the apartment for new tenants, cleaning, updating repairs and equipment, as well as for garbage removal services and the maintenance of the homeowners' association primarily falls on the property owner.

The complexity of assessing rental prices in Gran Canaria

Rental specialists note that establishing uniform rental rates for housing in Gran Canaria proves to be quite a challenging task, as prices are influenced by a multitude of factors. First and foremost, the same circumstances that affect the real estate sales market also come into play in the case of rentals.

Factors affecting rental prices

The most significant aspects remain:

• Proximity to the ocean
• Picturesque views from the windows
• Presence of a balcony
• Elevator
• Parking spaces

Traditionally, rental rates in the northern part of the island are usually lower, while in the capital and resort areas in the south they increase significantly.

Examples of rental housing prices

For example, if we take a small studio that doesn't have a direct view of the sea but has quality renovations and is within walking distance to the beach, the rental price would be approximately 40 to 50 euros per day. If you are looking for accommodation with two or three rooms, the prices start at around 55 euros per day.

However, it should be noted that the mentioned amounts are based on the accommodation of two or three people, and for each additional guest, a minimum surcharge of 6 euros per night will be required.

Exclusive rental options

The more unique and attractive the accommodation is, the higher its rental price will be. For example, a luxury penthouse with a swimming pool and panoramic ocean view will cost tenants from 100 euros per day. While a traditional villa in a picturesque mountainous area with a magnificent view of the sea will cost in the range of 150-200 euros per night.

But if such a villa is located just 10-15 minutes' walk from the beach, the prices can rise to 300 euros per day.

Choosing a neighborhood to live in

When choosing a place to live, it's important to approach the matter carefully and thoughtfully. It's advisable to explore the area on your own or seek assistance from a real estate professional who can provide detailed information about each neighborhood or, if necessary, arrange a tour.

Although any area can, in principle, be suitable for permanent residence, not everywhere will foreigners feel comfortable. Often, foreigners turn to agencies after seeing enticing advertisements for apartments with ocean views, but in practice, they may encounter residential neighborhoods that do not meet their expectations and are quite unappealing.

Mistakes when choosing a home

Another common mistake is underestimating distances. Although Gran Canaria is not very large, convenient and fast roads are only available along the coast. Therefore, if you find attractive accommodation in the mountains just 10-20 kilometers from the main highway, the trip can take 40 to 60 minutes along narrow and winding roads, which may not be comfortable for everyone.

Short-term rentals in residential areas

As a rule, areas designated for permanent residence are not ideal for short-term rentals. To attract tenants in such places, property owners will have to significantly lower prices, which may ultimately prove unprofitable from an investment perspective, although there may be exceptions in this segment of real estate.

Property search in Gran Canaria

When looking for the perfect Gran Canaria accommodation, it is worth considering not only the coastal areas, but also some of the mountainous locations that may appeal to nature lovers. It is advisable to consult an experienced professional for more complete and accurate information on the demand and supply of specific properties.

Five recommendations from experts

Here are five key tips for those interested in purchasing real estate on this wonderful island. Like in any other field, working with real estate involves many nuances, as well as local regulations that are advisable to consider. By following these simple recommendations, you can significantly ease the process and get closer to acquiring your desired home.

1. Financial preparation

The first thing to look at is whether you have the financial means not only for the purchase itself, but also to cover any associated costs that may arise. While this may seem obvious, many newcomers to the real estate market make the mistake of offering a price for a home that they ultimately cannot afford.

• Make sure that there are funds available in the account.
• Is there a buyer for your current property?
• Do you know how much of a loan you can get from the bank?

2. Personal visit to the site

The second point is to be sure to visit the property in person to assess its condition. This is one of those steps that are sometimes forgotten, but it is really important. Don't miss the chance to see not only the building itself, but also the surrounding infrastructure.

• Location of supermarkets.
• Availability of stores and public transport stops.
• The convenience of traveling to the places you need.

3. defining the purpose of the purchase

The third piece of advice is to clearly define the goals of your purchase and your future plans. If you are considering the purchase as an investment, it is important to understand how profitable it will be by paying attention to market trends, the competitiveness of the offerings, and the price levels.

• Feel free to negotiate the price.
• If you plan to live in this property for decades, then you can pay less attention to strict price requirements.
• Remember the regular expenses for maintaining your home.

4. Preliminary study

Fourth, make sure to do some preliminary research on price categories, available offers, and the areas that interest you. It is recommended to start looking for accommodation at least two weeks before your planned visit to the island.

• This will help avoid potential disappointments.
• Wasting time, especially when it comes to real estate at more affordable prices.

5. Contacting professionals

The fifth and final piece of advice is not to hesitate to seek help from real estate agencies. Remember that you are about to make significant investments in a market that is unfamiliar to you. The real estate market is full of various nuances and complexities that can unexpectedly impact your plans.

• It's important to have the support of professionals.
• They will provide assistance at all stages of this key process.

Conclusion

In conclusion, I want to emphasize that the Canary Islands, particularly Gran Canaria, continue to be an attractive destination for both tourists and investors. The unique combination of a mild climate, safety, and economic stability creates ideal conditions for living and vacationing. Millions of tourists visit Gran Canaria, which is a testament to its popularity and high level of comfort.

I noticed that the increase in the number of European residents on the island is linked to their desire to spend the winter months in warmer climates, which in turn stimulates the real estate market. Low tax rates and investment opportunities through programs like "golden visas" make Gran Canaria particularly attractive for real estate purchases.

Advantages of Gran Canaria

• Mild climatewith 300 sunny days a year.
• Safety— a low crime rate and the absence of dangerous animals.
• Stabilityeconomic and political situation.
• Multilingualismand the multiculturalism of the population.
• Reduced taxesincluding a low VAT.
• European quality of medicineand infrastructure.

It is also worth noting that the island has an extensive infrastructure and quality medical care, which is important for permanent residents. High-quality education and a variety of leisure activities make it an ideal destination for families and people of all ages.

Despite economic challenges, Gran Canaria is showing resilience in the real estate market. Special attention should be paid to the stable prices in the southern areas and the city center, which is already attracting the interest of many investors.

Considering all these factors, it can be confidently said that Gran Canaria is not just a vacation island, but also an excellent place to live and invest. If you are contemplating a new phase in your life or expanding your business, Gran Canaria definitely deserves your attention.