The property purchase
Introduction to property purchase in Spain.
The process of purchasing a property in Spain is similar to the process in any other European country.
There are however some differences. Although we would like to discuss every detail with you personally, we hope this paragraph will help you get a first orientation:
You take the decision to purchase a property, what to do then?
Once you have decided for a particular property, you can reserve the property by entering a private contract of option to purchase and making a down payment - in general 10% of the purchase price. The contract of option to purchase includes all the important purchase conditions: purchase price, latest date for completion, transmittance of the property free of charges, inventory list of the furniture, etc. Both parties - buyer and seller - are equally obliged, i. e. if one of the parties is not fulfilling the contract, they have to pay an indemnity to the other party.
Notarial conveyance:
The property is officially transmitted to the Buyer at the signature of the Deed of Conveyance (Escritura Pública de Compraventa) before a Notary Public; simultaneously the buyer pays the total purchase price. The Notary Public receives from the Land Registry Office information about the property and certifies this in the deed. He advises both parties on their rights and duties, especially on tax matters. The Deed of Conveyance must then be presented at the Land Registry for its registration, this process takes 1 to 3 months.
Taxes and legal fees related to the purchase:
Following are the main features of this chapter: purchase tax, Notary's and Land Registry's fees, handling fees and translations. On average one has to reckon 8-10% of the purchase price, however we will make for you a detailed estimate on each particular property you are interested in.
Yearly costs:
Also after having bought the property there are taxes payable. Generally these are relatively low in Spain, they do not represent a high yearly charge. If the property belongs to a complex with community facilities ("comunidad"), there will also be a maintenance fee to pay for these. In each particular case, we will inform you in detail about these and other matters as insurance, etc. and elaborate a detailed estimation of expenses.
• Canary Islands real estate market 2024: An overview of sales figures, prices, and trends.
• The year 2024 in the Canary Islands was characterized by remarkable momentum: Both sales figures and purchase prices once again show a clear upward trend. On Gran Canaria and the surrounding islands, the situation is clear:
• High demand meets limited supply.
• Prices are rising significantly.
• The popular coastal and tourist regions are particularly affected.
• Sales figures: More transactions than in the previous year.
• The number of real estate transactions increased again in 2024.
• Total number of sales in the Canary Islands: 25000 apartments.
• 6,803 new builds.
• 18,057 existing properties.
• Growth compared to 2023: +4.6%.
• While the Spanish statistics office INE reports even higher growth rates, notaries report an increase of approximately 3.5%. The differences arise from different survey methods – but the trend is clear: the market remains vibrant.
• Prices: Continued to rise.
• Parallel to the increased sales figures, real estate prices also rose sharply in 2024.
• Canary Islands as a whole: €2,846 per square meter (+17% compared to the previous year).
• Las Palmas de Gran Canaria: €2,482 per square meter (+12.7%).
• In the south of Gran Canaria:
• San Bartolomé de Tirajana (Maspalomas): approx. €4,223/m².
• Playa del Inglés: approx. €5,054/m².
• Maspalomas / Meloneras: approx. €5,938/m².
• Particularly striking: New construction projects became more expensive by 13.3%, which is above the Spanish average. This is due to a shortage of building land, rising construction costs, and the high demand for modern apartments and vacation apartments.
Foreign buyers as a decisive factor. A key aspect contributing to price increases in the Canary Islands.
International demand is a key factor: Around 25% of all property purchases are made by foreign buyers.
This puts the Canary Islands well above the Spanish average.
Particularly in demand are: vacation apartments by the sea. Villas in tourist hotspots. Investment properties with potential returns.
Buyers come primarily from Germany, Austria, Switzerland, Great Britain, Scandinavia, Italy, and France, often looking for a second home or an investment.
Forecast 2025: Will the trend continue?
The year 2024 has shown: The real estate market in the Canary Islands continues to boom.
More sales, rising prices, and strong international demand characterize the picture. Experts expect prices to remain high in 2025.
The fundamental market conditions continue to point toward stable to rising prices. This trend is expected to continue, particularly in regions with high international demand – such as Playa del Inglés, Maspalomas, Meloneras, San Agustín, and Mogán.
Of course, we are aware that rising prices are beneficial for sellers, the state, municipalities (high tax revenues), and real estate agencies.
The negative aspects, however, are the tight rental market, which means many people can no longer find affordable housing.
Many prospective buyers are also unable to pay the high prices.
Therefore, for many years we have been demanding that the authorities finally end their policies of obstruction in the construction sector and build more, especially social housing.