Canary property prices starting to rise

As prices in the Spanish and Canarian property markets hit rock bottom, interest rates fall and stock markets remain volatile, a growing number of industry specialists believe that the first signs of recovery in the market are being seen. Leading the charge are high net-worth (HNW) individuals, according to the latest Wealth Report from Knight Frank, with 55% recognising present fundamentals and planning to increase their exposure to residential property over the next two years. “In turbulent times the wealthy want their investments to be both tangible and transparent,” said Liam Bailey, head of residential research at Knight Frank. HNWs are not the only ones looking for a relative safe-haven for their money at present. In spite of difficult economic conditions and significant falls in the value of Sterling, online searches for international property have increased by up to 72% month-on-month. Some analysts believe that the resurgent mortgage market in the UK is also behind the sudden rise in confidence. “Further evidence that the pick-up in buyer interest in the UK housing market is feeding through into actual activity is seen in the latest mortgage approvals data from the Bank of England,” said Simon Rubinsohn, chief economist at RICS. “The number of mortgages sanctioned last month climbed to the best level since May 2008.” Behind these fundamentals, a growing number in the industry are recording a rising level of sales. Across Spain and the Canaries there seems to be a realistic, but optimistic sense that the beginning of the end could be approaching as more buyers discover the value. “I believe that there will be enough volume of sales this year that people will start to wake up and think that they better get in now before prices rise any further after the bottom of the market has been reached,” said one agent. “This means that the beginning of a recovery can commence, with total recovery happening within three to four years.”