The analysis of occupancy rates by area in Gran Canaria for 2024 (vs. 2023) confirms a crucial trend for institutional investors: the market has entered a phase of geographically divergent performance. Southern Gran Canaria alone does not guarantee market expansion without sustained investment. The ability of Puerto Rico, Amadores, and Meloneras to maintain occupancy rates above 81,49% and register increases of more than 2,19 percentage points indicates strong pricing power. This validates the recent capital expenditure (CAPEX) for repositioning and suggests lower investment risk. The market is willing to pay a lower risk premium for these assets.
For the rest, the lack of above-average growth means these assets are losing competitiveness. "Institutional investors are forced to discount a necessary and urgent future investment from the current purchase price to avoid a significant writedown," notes a financial manager at a REIT with interests in southern Gran Canaria, because "the investment risk in these segments is higher without an immediate reform plan."
The key is knowing what to do with the money where the risk of obsolescence is concentrated. The conclusion of the investment fund managers consulted is unequivocal: "Future growth will be measured by the ability to generate differential returns (RevPAR) through renewal, a cost pressure that the low-growth segment of Maspalomas will not be able to avoid."
The strongest data is concentrated in the business environments of the west coast (Mogán). Areas such as Puerto Rico, Amadores, and the Meloneras segment show high occupancy rates and significant year-over-year growth. Destinations exceeding the average growth rate are consolidating their position as hubs for capital investment, demonstrating strong pricing power (RevPAR).
Puerto Rico and Amadores not only have occupancies exceeding 81,49%, but also register year-on-year variations that exceed the average threshold of +2,19 pp, indicating a successful return on investment in upgrading, while Meloneras, despite its high base of regulated places (represented by the larger bubbles), maintains a financial performance that, although operating above 81,49%, manages to sustain significant increases above the average island growth.
The biggest challenge lies in the clusters with the largest historical bed volume (Maspalomas/Playa del Inglés), where occupancy is high, but growth is flat. These locations report high levels of absolute occupancy, remaining close to or above 81,49%. However, they are experiencing year-on-year growth rates that hover near 0 percentage points or are even negative. This stagnation is the clearest indication that the maturity of the product is hindering its ability to generate additional revenue per available room (RevPAR).
