Foreign real estate investment in the Canary Islands is on a firm footing

The real estate market in the Canary Islands is experiencing an unprecedented boom thanks to foreign investment in luxury properties, a trend that has been growing over the last decade and which is far from being a one-off.

Already under the Rajoy government, through the 'golden visas', foreigners from outside the EU could obtain residence permits if they bought property worth more than 160,000 euros. This policy had an immediate effect on regions such as the Canaries, which were desperate to reduce the housing surplus accumulated after the collapse of the housing bubble. These buyers were key to revitalising the local property market and this was demonstrated by the extent to which the Canary Islands became the second region in Spain with the highest percentage of international buyers, second only to the Balearic Islands.

Today, private equity and alternative financing are making it possible for developers and builders to get their projects off the ground in the face of a shortage of traditional bank financing. Blocks of spacious terraced flats, townhouses, semi-detached houses and luxury villas are receiving resources through investment funds and debt funds, with all the actors involved knowing the remarkable commercial strength of these developments.

The President of DEXTERYeidy Ramírez, who values it very highly: "The Canary Islands have been for us, in the more than five years of the company, an enclave in which we have facilitated financing operations, year after year, always with a mortgage guarantee. Not only to international clients but also to local developers, with a well-defined and well-developed business idea and who, of course, know the terrain they are treading on well".concludes Ramirez.