Real Estate in Tenerife under conditions following a request by the Canary Government to the European Commission for measures on the sale of property to foreigners
The real estate market in Tenerife is under severe pressure due to a combination of factors that make living on the island increasingly difficult for the local population. The island’s popularity as a tourist destination and an investment location for foreign buyers has led to growing demand for housing, resulting in rapidly rising prices. A significant portion of available properties is being purchased by non-residents, often for the purpose of holiday homes or lucrative short-term rentals via platforms such as Airbnb.
Unprotected Housing Market
This trend limits the supply of homes on the regular rental and sales market, which drives up prices for locals and exacerbates social inequality. At the same time, there is a lack of sufficient regulation, affordable housing, and a robust inspection system. As a result, a growing gap is emerging between the housing needs of residents and the economic reality of a tourism-driven property model. The situation is causing concern among policymakers and residents, who are increasingly calling for drastic measures to protect the housing market from overheating and further disruption.
Starting Scenario
The government of the Canary Islands will, during the XXIX Conference of the EU’s Outermost Regions (RUP), taking place in La Réunion, formally and for the first time, ask the European Commission for measures that would make it possible to restrict the purchase of homes by foreigners.
During the presentation of Fernando Clavijo’s participation at the summit, government spokesperson Alfonso Cabellodeclared that this marks the start of a political and legal offensive in the field of housing and protection of the autonomous region, with the aim of limiting home sales to foreigners.
23% Ends Up in Foreign Hands
The proposal aims to make it more difficult for non-residents and foreigners to buy property in Tenerife and the other Canary Islands without violating European regulations. The Canary Islands will advocate for the special treatment granted to outermost regions, as they require a specific level of protection.
The situation in the Canary Islands, population growth, and the significant disparities between the islands demand such measures. 23% of the homes sold on the islands end up in foreign hands. Clavijo will bring the request for setting limits to the table during a meeting with Raffaele Fitto, Vice-President of the European Commission, to whom he will convey his concern about the housing market, in addition to issues such as the migration crisis and geopolitical tensions.
Good Relationship with the EU
The Canary government realizes that the path ahead is fraught with challenges. In the past, there have been other issues once considered impossible, which eventually materialized in the Canary Islands — such as the 100% discount on land-based public transport and the 75% discount on flights to mainland Spain.
Membership in the European Union has brought the Canary Islands great joy and significant progress, and that must now also contribute to the protection of the ecosystem and the islands’ future, which requires corrective measures. This summit comes at a crucial moment to revisit Article 349 of the EU Treaty.
Gobierno de Canarias © Photography
Real Estate in Tenerife Under Conditions ©
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