What happened to the Tenerife Property Market during 2015?
Well, the Christmas and New Year parties are over, I hope you’ve all well and truly over indulged as always and you’re now off the alcohol, given up chocolate and at least bought the gym membership…even if you haven’t been yet.
The general consensus for 2015 was that it wasn’t a year that set any records but it was slightly better than 2014 and was the year that certainly showed prices levelling out.
The recent surge in estate agent offices opening their doors is a clear indicator that some people believe that selling property has started to get easier…yes reader, that is a dig in certain directions.
True results for the property market for 2015 won’t be released until the end of January or the start of February 2016, but I’ve gathered the latest information for quarter 3 and what there is for quarter 4 2015.
How was the Tenerife Property Market during 2015?
By the end of quarter 3 the “House Price Index” had reported that average house prices had increased 4.5% over the previous 12 months. This means that this index has now risen for the last six consecutive quarters which shows that things are certainly on the up.
This 4.5% increase in average property prices represents the largest increase in official house prices since 2007.Click to tweet
The Balearic Islands came top of the league with an increase of 8.4% in property prices and the Canary Islands coming in at slightly under the average with an increase of 4.4% shows that we’ve still got a long way to go to the heady days of before the crisis but we’re certainly going in the right direction.
Just because of that, it doesn’t mean that we’re in the clear as we’re bound to see some swings throughout Spain as a whole, although I think it has to be said that the majority of property prices in Tenerife have pretty much bottomed out and are just looking to 2016 and onwards to start moving upwards.
We’ve obviously still got our fair share of overpriced properties in Tenerife still for sale but the owners of those properties are waiting for the market to come back to them. This isn’t necessarily the best strategy but if there’s no real motivation to sell and they can afford to sit on them a while longer, then I guess there’s no harm in it.
On the other hand, there are still some very well priced properties on the market here in Tenerife with motivated sellers, so 2016 will certainly see an increase in sales numbers again and a hope that those vendors will be able to move their properties on.
Sterling has regularly moved well above the 1.40 mark during 2015 and just missing a high of 1.45 with no real reason it seems, to think that it’ll stop this great performance. Many reports through the year claimed that it could well hit 1.50 sometime during 2015 based on the Greek crisis, although this barrier was never broken.
If Sterling/Euro rates carry on performing through 2016 as they have been, it’ll carry on being a major attribute for British buyers making purchase throughout Spain and the Canary Islands.
It’s not just the reports of rising house prices and great exchange rates that make me think that 2016 could well be the year of the start of the property market recovery, the BBVA, one of Spain’s largest banks reported at the start of December that it forecasts the end of the recession in 2016 and consolidation of growth.
In its report it also says that according to notaries, home sales were up 9.5% in August 2015 and up 8.7% in September and that there was no sign of it stopping during the last quarter.
Banks are starting to lend again…it’s still not easy to get a mortgage and there are still loads of hoops to jump through…but that said, they are releasing the purse strings a little more, so that bodes well too.
With British demand for Spanish property up 53% during the third quarter of 2015 in comparison to the same quarter in 2014 and improvements in all of the main metrics, with sales and mortgage lending up throughout Spain and house prices rising in a number of towns and cities, 2016 has absolutely got to be the start of a much more progressive property market for Tenerife and the Canary Islands.
Here’s to 2016 with hopes for prosperity and peace.