Housing in the Canary Islands in August 2011 has an average price of 1,730 euros per square meter, according to the monthly sales price report prepared by the website 'pisos.com'. This figure marks a decrease of -1.48 percent compared to July 2011, when the average price was 1,756 euros per square meter.
Compared to August 2010, there is a decrease of -9.6 percent, since then the price was 1,914 euros per square meter. The year-on-year adjustment produced in the Canary Islands region is the fifth most marked in the country.
As for the price of housing in Spain, it has marked a decrease of -0.98 percent compared to July 2011, and -9.35 percent compared to August 2010, standing at 2,147 euros per square meter. "The price of housing continues its general adjustment in the midst of a panorama dominated by the low granting of mortgages and electoral uncertainty," the portal points out.
Provinces
The Canary Islands provinces are evolving downwards in the last month. Santa Cruz de Tenerife falls by -2.83 and Las Palmas by -1.11 percent. The decrease in Santa Cruz de Tenerife is close to the largest decreases, remaining five places behind Lleida (-3.43 percent), which is the one that decreases the most. Year-on-year, both provinces also fall. The fall of Santa Cruz de Tenerife (-14.78) occupies the eighth position among the ranking of decreases, headed by Ciudad Real (-23.63) and Toledo (-23.13). For its part, Las Palmas registers a more moderate decrease, of -7.82 percent.
The Canary Islands provinces have moderate prices to buy a home. Specifically, Santa Cruz de Tenerife (1,549 euros per square meter) is the most economical in the region, although it is far from the prices presented by Ciudad Real (995 euros) and Cuenca (1,049 euros). Las Palmas, puts its price at 1,794 euros per square meter.
Capitals
The portal explains in a statement that, as in the provincial sphere, the capitals of the Canary Islands provinces also register decreases. Las Palmas de Gran Canaria falls by -1.28 percent this month, being surpassed by Santa Cruz de Tenerife, which decreases by -3.46 percent, the most pronounced reduction at the national level, followed by Donostia-San Sebastián (-3.15 percent) and Zaragoza (-2.76).
Year-on-year, the city of Santa Cruz de Tenerife (-14.09) decreases much more than Las Palmas de Gran Canaria (-6.59), although it is widely surpassed by the falls of Pamplona (-21.48) and Lleida (-20.90 percent).
The Canary Islands cities are once again among the cheapest. With 1,719 euros per square meter in August 2011, Santa Cruz de Tenerife is the tenth most affordable provincial capital to acquire a home, and Las Palmas de Gran Canaria, the twentieth with 1,897 euros per square meter. The most economical Spanish capitals are Ávila (1,446 euros per square meter), Lleida (1,501 euros) and Palencia (1,508 euros).
The website points out the fiscal change recently announced by the central government -which reduces the VAT on new housing to four percent and that in the Canary Islands the regional Executive has reduced the Igic from the current five percent to 2.75 for first habitual housing with a cost not exceeding 150,000 euros- "will boost the absorption of stock".
However, it affirms that this measure "will not have the slightest influence" on second-hand housing, which is currently less attractive fiscally. "The savings of about 6,000 euros for a new home of 150,000 euros, could be assumed by private sellers if there is still room for discount, although the ideal would be for the autonomies to respond to the reduction of VAT with a reduction of the Property Transfer Tax (ITP), which is the one that taxes this type of housing", indicates general director of 'pisos.com', Miguel Ángel Alemany.
ACN Press
