We are talking about new housing and the developer and a real estate agent are not your enemy. A buyer of a 200.000 euro home in the interior of southern Gran Canaria needs to pay 40.000 euros in advance to the bank for a mortgage, 20.000 euros in taxes plus 5.000 euros in local rates, which represents a down payment of 65.000 euros, meaning it is impossible for a young person to buy a new home.
It is the perfect storm: impossible conditions for a young family to buy a house. The housing stock in the south of Gran Canaria is close to zero and is about to become residual, except that politicians stop regulating by attacking all fronts. Add to this the cost of transporting materials from Asia to the Canary Islands.
The profit margin for a property developer with the sale of homes is very small. In addition, as demand is lower, the business stagnates and in areas far from tourist work centres, practically nothing is built. Added to this is the increase in the foreign population between 25 and 44 years old in the south of Gran Canaria, which adds pressure to the property market.
And why does all this arise? From 2006 to 2025, the construction sector in Maspalomas and the rest of southern Gran Canaria has experienced significant changes due to the implementation of the new Technical Building Code (CTE) and the increase in raw material overcosts. During this period, raw material prices have been constantly increasing, with annual increases ranging from 2-3% in the early years to up to 12-15% in the later stage due to the COVID-19 pandemic and the global energy crisis.
The new CTE measures, focused on energy efficiency, safety and accessibility, have increased construction costs by 10-15% per square metre. These measures include the use of more efficient materials and the integration of renewable energy systems, as well as the adaptation of toilets for people with ostomies and the integration of charging points for electric vehicles. These requirements have added 5-7% to construction costs.
In addition, adapting to the new European standards has increased material costs by 8-10%. Construction professionals have also had to invest in training and updating design and construction practices to comply with the new regulations. This process has involved additional costs and has contributed to the overall increase in construction prices.
As for communal spaces, costs have been similarly affected. Since 2006, communal space costs have increased annually by 2-3% in the early years and by up to 12-15% in recent years. These increases are due to the implementation of new regulations and the extra costs of raw materials, as well as to growing demand and economic recovery.
In summary, the implementation of the new CTE and the increase in the extra costs of raw materials have had a significant impact on construction costs and the price per square metre of housing in Maspalomas and the rest of southern Gran Canaria. Although these changes have led to an increase in initial construction costs, they have also been necessary to improve the energy efficiency, safety and accessibility of buildings.
