Search for properties in the Canary Islands

look for properties in the canaries

How to search for the right property in the Canary Islands

When you start looking for a property to buy, the approach is more or less always the same: search on a real estate portal with a filter on area, dimension And price.

There are also those who are more advanced and sort the results by increasing price, focusing its attention on the most "convenient" properties from an economic point of view.

Finally, some even more advanced foxes order properties by price per m2, making the search for a deal (or presumed one) even more efficient.

Now, regardless of how each of us decides to set up a research, what is important to understand is that the focus should not be on price, but rather on the actual market value of the property.

The difference is very simple: price is the amount of money that is requested, while value is the amount of money that is requested the market is willing to pay, based on its laws of supply and demand.

Law of supply and demand

And it is precisely on the laws of supply and demand that the game is played, because the buyer who finds himself faced with an (at least apparently) advantageous price should also be able to establish whether that price is actually advantageous compared to the real value of the property. Because, let's not forget, the day we decide to resell that property, it will not be valued based on our purchase price, but rather based on its real market value at that specific moment.

Let's take a practical example, to better understand the concept: if we come across a two-bedroom apartment in the city, on sale at the price of €45,000, we can undoubtedly say that we have come across a particularly advantageous price, at least compared to that certain type of apartment.

In fact, if normally €100,000 is requested for that type of property, it is clear that we are faced with a possible "bargain". But at the risk of shattering someone's dreams, it is my duty to point out that portals rarely offer "deals", because behind a particularly low price there is almost always a property of great value. low value.

Value of a property

But what determines the low value of a property? Simply the low demand, i.e. the market's lack of interest in that particular property or, more generally, in its characteristics.

The reasons can be the most disparate: the area is infamous, the building is dilapidated, there are sources of atmospheric, acoustic or other pollution in the surrounding area, there are constraints of some kind weighing on the property, which prevent it from being fully enjoyed...

In short, what is important to understand is that it is not just there Always a reason behind a particularly low price, but that it is the buyer's duty to know this reason, in order to protect themselves from a potentially risky or otherwise inconvenient purchase.

Although there are many variables in a real estate sale that contribute to determining the value of a property, we will see below three types of property that most frequently "attract" unwary buyers precisely because of an apparently favorable price.

Elevated floors without elevator

Let's start with the high floors without a lift: it is very common, in the Canary Islands, to come across three or four-storey buildings without a lift. It goes without saying that the higher the floor, the more "convenient" the price is for three reasons, mainly: first of all, those who buy to live know that, as they age, each flight of stairs they have to face even more times a day will become an increasingly greater burden in the future, if not downright an impediment. This aspect determines a shortage in demand and, consequently, a reduction in price.

The second reason is that, if you wanted to rent the property instead, the absence of a lift will drastically reduce the number of potential tenants and, consequently, the rent.

The third reason summarizes all the reasoning made so far: when we have to resell the property the pool of possible buyers will be reduced as will, consequently, the selling price. Not to mention the sales times, which will lengthen considerably with a consequent further reduction in the price in case of urgency in the sale.

Floor overlooking the interior of a building

The second type of property arises from a distinctive feature of the urban model of the Canary Islands, which includes the presence of buildings with a type of apartments that do not have direct views of the street. The only source of natural light and air for these apartments comes from windows that open onto internal patios.

For this type of property, defined as "interior” (internal), the same limitations described above apply for upper floors without a lift: the variable changes but the market dynamics are exactly the same.

Vivienda de Official Protection

Another type of property which, despite the often advantageous prices, is advisable to avoid, are the so-called VPOs (Vivienda de Protección Official). This is our public housing, i.e. homes at controlled prices intended for the lowest income groups.

These homes are subject to various types of constraints, which concern not only the purchase and subsequent resale, but also the use of the property itself. In particular, the prohibition on leasing to third parties is one of the most significant limits.

These are just some examples of “price apparently advantageous”, which one must know how to interpret well to avoid falling into the illusion of a “deal”, which then turns out to be such only for the seller.

The purchase of a property, both for the amount of money involved and for the complexity of an operation of this kind, must never be underestimated, especially if it is done in a foreign country, of which one does not have an in-depth knowledge of the real estate market and the laws that regulate it.

The advice is always to delve into the topic very well before committing to an operation and, if possible, to always rely on a professional who can orient us and guide us in a more informed and serene purchase.

Article by Marco Sparicius Canary Islands Real Estate Consultant

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