The property market in the south of Gran Canaria has experienced a significant drop in apartment sales prices due to the implementation of new regulations affecting the heirs of properties acquired during the Franco regime. This regulation, which seeks to revitalise tourist areas and encourage the proper use of properties, has had a significant impact on the sector.
The prices on the market consulted with the artificial intelligence tools used mainly by British, Nordic and German real estate operators and compared by Maspalomas24H indicate that we have to go back to April 2017 when the average price of housing in Maspalomas was 3.040 euros per square metre and in Playa del Inglés the average price was €2.995/m2 while in San Agustín it reached a maximum of €2.882/m2. In December 2016, the average price was €2.710/m2.
The new regulation establishes that the heirs of properties purchased during the Franco regime, mostly people from Las Palmas who gained public office, must meet certain requirements to maintain ownership of the properties. These requirements include the obligation to use the properties for tourist and not residential purposes, which has led many owners to put their apartments up for sale due to the impossibility of complying with the new requirements.
As a result, the market has seen an increase in the supply of apartments for sale, which has led to a drop in prices. According to recent data, the sale prices of apartments in the south of Gran Canaria have decreased by 15% compared to the previous year. This trend has caused concern among investors and property owners, who see the value of their assets considerably reduced.
The regulations have also been welcomed by some sectors, who believe that it will help revitalise tourist areas and attract new investors interested in developing hotel and tourism projects. However, the heirs of the affected properties have expressed their discontent, arguing that the regulations are unfair and that they have not been given enough time to adapt to the new requirements.
Currently, apartment prices in this area are showing a downward trend. This decrease in prices may be influenced by several factors, including the new regulations affecting the heirs of properties acquired during the Franco regime, forcing them to use the properties for tourist purposes and not for residential purposes. This has led to an increase in the supply of apartments for sale, which has caused a drop in prices.
Furthermore, market saturation and competition between sellers have also contributed to this downward trend. Potential buyers now have more options to choose from, allowing them to negotiate better prices. The real estate market in the south of Gran Canaria, specifically in Playa del Inglés, is experiencing a decline in apartment sales prices due to a combination of regulatory and market factors.
