These are the reasons why buying new construction in the Canary Islands is a more economical option than resorting to second-hand housing.
Since 2021 the Canary Islands have been experiencing an unusual trend in the real estate market: New construction is cheaper than second-hand housing.
According to the latest data published by the Association of Registrars referring to the first quarter of 2024, new construction in the Canary Islands has remained at 2,110 euros per square meter on average, while used housing has reached 2,243 euros per square meter.
“New construction in the Canary Islands is 6.1% more expensive than used housing.”
Despite this clear difference between the two types of housing, there is something that both have in common: the price of real estate is rising, something that is noticeable both in new construction in the Canary Islands and in second-hand housing.
*For more information about the housing market in the Canary Islands and specifically in Fuerteventura, you can download our latest report on housing in Fuerteventura. In it you will find information on the evolution of prices by municipality, number of transactions carried out on the island, as well as the profile of the most demanded buyer and type of housing.
This unusual situation experienced in the Canary Islands is only found in another Spanish autonomous community: Galicia.
In the rest of the communities, the price of new housing is clearly higher than that of used housing.
Why is new construction in the Canary Islands cheaper?
But why is new construction in the Canary Islands cheaper than second-hand housing?
There are several reasons that lead to this unusual situation.
Peripheral location
One of the main reasons that makes new housing in the Canary Islands cheaper is its location, usually less central than used housing. Second-hand housing is usually located in consolidated areas, surrounded by all kinds of services (leisure, restaurants, supermarkets, schools…), which raises its price considerably.
In contrast, newly built homes tend to be located in somewhat more remote and quiet areas.
However, if they are well connected to the center, it is possible to enjoy all the tranquility of the periphery and access all the services of the area in just a few minutes.
- Recommended reading: Discover the best areas to live in Fuerteventura.
Less affected by inflation
Another aspect to take into account is that the transactions of new homes in the Canary Islands that are signed now and that are included in the reports of the Association of Registrars, reflect the prices of years ago.
Since in many cases they are off-plan purchases, the prices are defined beforehand, so they are not so affected by the current escalation of prices.
Shortage of supply
In addition to the shortage of supply of new housing in the Canary Islands, there is also an insufficient stock of second-hand housing.
As there are few new developments available, the buyer is forced to resort to the second hand market.
This market, despite being somewhat larger, is still scarce for the current demand, so prices are soaring.
Longer delivery times
Buyers tend to prefer properties that are ready to move into, without having to wait for long periods of time until the keys are handed over.
This immediacy is something more or less easy to find in second-hand housing transactions, however, the matter becomes more complicated when we talk about new homes.
This requirement is even more accentuated in the case of investors, a segment of buyers that is acquiring great weight in the Canary Islands real estate market and who, since they do not normally need external financing, tend to demand shorter delivery terms in order to be able to meet their profitability expectations.
- Recommended reading: Houses under construction for investment in Fuerteventura
Where to find new construction in the Canary Islands?
As you have been able to see, accessing new construction developments in the Canary Islands is not easy.
The scarcity of this type of product means that those interested find it very difficult to find new homes that meet their requirements.
In Destiny Home we are proud to be the first new construction marketing company in Fuerteventura, one of the most demanded islands in the Canary Islands. Currently, we have in our domain the marketing of the most ambitious new development of the island: Villas de Tamaragua.
This is a cooperative housing project consisting of 118 one-story homes and two-story duplexes, located on plots of between 100m2 and 238m2, with two parking spaces and the possibility of including a private swimming pool and solarium.
This is the first new housing development in cooperative regime on the island, so the advantages that you can find compared to other new homes in Fuerteventura are innumerable.
If you are looking for a new development in Fuerteventura in which to settle your first home, enjoy your holiday home or even invest in the island with the best qualities and the best price (remember that currently the new construction in the Canary Islands is cheaper than second-hand housing), this development interests you!
Questions and Answers about new construction in the Canary Islands
Since 2021, the Canary Islands have shown an unusual trend in the real estate market: new construction is cheaper than second-hand housing. According to the Association of Registrars, in the first quarter of 2024, the average price of new construction in the Canary Islands stood at €2,110 per square meter, while used housing reached €2,243 per square meter.
These are some of the reasons why new construction in the Canary Islands is cheaper than second-hand housing:
Peripheral location: New homes tend to be located in less central areas than used homes, which are located in consolidated areas with all services nearby, raising their price.
Less Affected by Inflation: New construction housing transactions reflect prices defined years ago, as they are off-plan purchases, so they are not as affected by current inflation.
Supply Shortage: There is a limited supply of both new and second-hand housing, which increases demand and, consequently, prices.
Longer Delivery Times: Buyers prefer ready-to-move-in homes, which is more common in the second-hand market. Longer delivery times for new construction can be a disincentive for some buyers.
Finding new build developments in the Canary Islands can be difficult due to the scarcity of product. At Destiny Home, we are proud to be the first company to market new developments in Fuerteventura. We currently market Villas Tamaragua, the most ambitious new development on the island, with 110 cooperative housing units.
