The Canary Islands Minister of Public Works, Transport and Housing, Pablo Rodríguez, announced on Tuesday that his government has tasked the Canary Islands office in Brussels with preparing a "work agenda" to explore the feasibility of restricting property purchases by foreigners within the European Union.
Responding to a question from the Nationalist Group, Rodríguez acknowledged the severe housing crisis affecting the archipelago, driven by limited supply and rising demand. He pointed out that increasing property purchases by non-resident foreigners are driving up prices per square metre, further exacerbating the problem.
The minister described it as "normal, logical, and timely" that the demographic challenges facing the Canary Islands were discussed at the recent Conference of Presidents. He noted the region’s uneven population distribution, with some areas heavily populated while others are sparsely inhabited. In this context, he called for further exploration of Article 349 of the Treaty on the Functioning of the European Union, which could allow for exceptions benefiting outermost regions like the Canary Islands.
Meanwhile, José Manuel Bermúdez (CC) emphasised that access to housing is a key challenge for the current legislature, particularly given the archipelago's limited land resources. While recognising the Canary Islands as historically a "welcoming land," he highlighted that in areas such as southern Fuerteventura, Lanzarote, Tenerife and Gran Canaria, half of all property sales are to foreigners. Despite the constraints of European legislation on property purchases by non-residents, Bermúdez urged the Canarian Government to take action to restrict home purchases by non-resident foreigners.
Record foreign purchases in Spain boost market to new highs in 2024
Spain continues to attract foreign property buyers. Notary data reveals that in H1, foreigners purchased 69,412 properties – 1.8% more than the previous year – making up one in five transfers carried out in that period (20.4%).
Brits buying fewer homes: from 38% of foreign buyers in 2008 to 8.37%
Second-home transactions in Spain fell by 4% in Q2 2023, totalling 146,273, according to the Association of Registrars. This decline coincides with a drop in foreign buyers, particularly the British, who have historically been the most interested in properties along Spain's coasts. The share of British buyers has plummeted from 38% of all foreign purchases in 2008 to just 8.37% in Q2 2024. Sonneil Research attributes this decline to the 2008 financial crisis and the effects of Brexit.