The Canary Islands have an idea to alleviate their serious residential crisis and make it easier for people who live and work on the islands but are unable to find an affordable home: limit purchases of housing among non-residents. It is not a new proposal nor is it free of controversybut in recent days the island Government has managed to sneak it back into the center of the public debate. He has even achieved the direct backup of the Ministry of Housing.
The big question, in view of the latest data of purchase and sale, it is… Will it really help the Canaries to opt for “decent homes”?
What has happened? That the Canary Islands want to limit the purchase of housing among non-residents on the islands. It’s not a new idea and it’s not easy either put it into practicesince it would have to fit into the community legal framework, but in recent days the island Government has managed to sneak it into the center of the debate. First to raise that restriction publicly during a European summit. Second, by getting the Ministry of Housing support your position.
What exactly has he done? To begin the Government of the Canary Islands has transferred to Brussels for its “concern” about the lack of a “courageous strategy” on crucial issues affecting the island territories, such as housing. This was stated last week by the vice-adviser of the President’s Cabinet, Octavio Caraballo, during the Conference of EU Peripheral and Maritime Regions held in Barcelona. In that forum, Canarias went further and put an idea on the table: protect those who buy houses to actually live in them.
“The Canary Islands maintains its efforts to establish limits on the purchase of housing on the islands by non-residents to guarantee a decent home for the people who live in the archipelago,” explains the regional government, which reminded the conference that foreign purchases and vacation rental boom is “straining” the market and reducing the housing supply available to locals. “It compromises social sustainability.”
Has it stayed there? No. His proposal has been in the news again this week because the Canary Islands Executive he put it on the table during the meeting held on Thursday with Minister Isabel Rodríguez to discuss the State Housing Plan. From that meeting the Canarian authorities left with the “express support” of the State to limit the purchase of housing by people outside the islands.
“He has shown his support for the defense that we are carrying out before the EU to protect the right to housing of all Canary Islands and limit the purchase of housing by non-resident foreigners,” assures counselor Pablo Rodríguez. Without going into details, the ministry issued a statement after the meeting in which he confirmed that he is in favor of the EU allowing “speculative purchases” to be prohibited.
Is it a new proposal? No. Just a year ago the Canarian Government already announced which was looking for a way to take advantage of the islands’ Outermost Region (ORP) status to restrict the weight of non-resident foreigners in its real estate market. The truth is that the idea it’s been a while installed in the public and political debate, where it has not reached the necessary consensus for get ahead. Nor is it an idea exclusive to the Canary Islands.
In 2024 Add came to present a non-legal proposal for the Government to veto the acquisition of houses by investment funds and non-resident buyers in Spain for three years. It did not prosper, among other reasons due to the vote against the PSOE. The same idea has sounded in the Balearic Islands either Cataloniawhere the markets are also very marked by vacation rentals.
Why this interest? In the words of the Canary Islands Government, to guarantee that those who live and work on the islands can reside there and are not “expelled” by rentals for tourists and a market in full escalation. According to Idealista, since 2020 rents have become more expensive than 50% and the price of residential m2 has risen 68.3%. Housing is so expensive that there are temporary workers who have no choice but to stay in caravans.
The island government assures that in recent years “a third of sales in the Canary Islands have been carried out by non-resident foreigners”, which complicates accessibility to a residential market that already deals with a “limited supply and growing demand”. To solve this, the Executive proposes restricting purchases by foreigners who do not live in the region, a measure that has precedents in other countries but faces a challenge: the European lawthat explicitly protects the “free movement of capital.”
Is housing that expensive? Yes. At least it’s expensive enough to be in production. a curious phenomenon: foreigners themselves are being expelled from the market. a report published in October by the General Council of Notaries shows that, while in communities such as Asturias, Castilla y León or Galicia, home purchase and sale operations grew during the first half of the year, in tourist-rich markets such as the Canary Islands they have declined.
In the Balearic Islands they ‘punctured’ by 6.8%, in Navarra by 3.7%, in the Valencian Community by 3.6% and in the Canary Islands by 7.7%, a decline that comes in the midst of a rise in prices.
Images | Reiseuhu (Unsplash) and Bastian Pudill (Unsplash)
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