Is it worth investing in the Canary Islands in 2024?

It is better to invest in the Canary Islands in 2024

In this article I would like to resume the last Saturday live broadcast done with Luca in which we addressed the real estate topic from a slightly different perspective than usual.

Even though we had started with the idea of examining the recent dynamics taking place in the world of tourist rentals, we were seduced during the chat by some basic themes that constitute the foundation of any investment regardless of the market and the place in which takes place.

In fact, we are often asked whether it is (still) worth investing in the Canary Islands.

Is it therefore worth investing in real estate in the Canary Islands?

Obviously the interlocutor would expect an answer of the YES/NO type, but it would be truly reductive and not very serious for us to close the question in such a peremptory manner.

The truth is that the factors at play when it comes to an investment (and even more so a complex investment like real estate) are multiple and each of them can shift the answer to one side or the other at any time depending on how they vary .

First of all there is knowledge of the market: those who know the market know how to move and know where and how to obtain the best performances. In other words, those who have a precise idea of how the market is really working (and I'm not talking about buying into any nonsense shared on social media by people who have never invested) clearly have all the convenience to invest because they know where do it and how to do it for best results.

On the other hand, those who approach the Canary Islands market for the first time will probably be destined to focus on the less interesting opportunities, having as their only strategy that of following the trend ridden by the majority.

All in defiance of a postulate that is the basis of any market in which one decides to invest: the masses are always wrong!

Where the masses are investing it means that the business is already finished because the average (non-professional) investor tends to follow trends when they are already at the end of their positive cycle, i.e. when the greatest gains have already been made.

At that moment, professional investors are already doing something else, far from the prying eyes of the masses who are too busy fighting for crumbs.

You know the market, you arrived on time or late.

In short, the convenience of investing or not in the Canary Islands in 2024 depends solely on the investor's knowledge of the market. If the investor has a clear vision of market trends, then he will know how to set up his future investments to obtain maximum benefit in the years to come. Conversely, it will be forced to join the majority by sharing mediocre strategies and results well below the real potential of the market.

Once again it is important to remember that in the world of investments it is not important what you do but how you do it.

When I hear myself asked: "what is the best investment to make in the Canary Islands?" I always answer “It depends!”. It depends on the area, the budget, the time horizon... but above all it depends on the investor's ability to set up an operation capable of generating a satisfactory and constant return over time.

Two investors on the same day can make the same investment in two different properties and obtain different results because the property is not a fungible asset as is the case with a share. The return on a property can in fact vary significantly depending on how the investment idea is conceived and how the real estate transaction is set up.

Buying a property is not necessarily synonymous with investing in a property: the investment is such if and only if we are able to estimate an annual return with numbers in hand.

And you, when you bought your first property thinking of making an investment, did you calculate the annual return you would get from it? How much was your estimate? Share it here in the comments!

Article by Marco Sparicius Canary Islands Real Estate Consultant

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