| Property
Value (2003-03-05) (www.immo7.com)
Property Value Increase in the past years
In the lookup table 1
we see the evolution of thehousing value between the years 1997 y 2001. These
values and the information regarding the offer of new houses are based upon the
public available statistics made by the "Instituto Canario de Estadística
(ISTAC)" (Canarian Institute of Statistics).
 The
price per square metre for new constructed houses in 1997 was with 702 Euro/sq.m
12,5% higher than used houses (624 Euro/sq.m). Every year the value of the houses
increased at least 10% with little difference between new and used. The percentage
increase in the year 2000 reached the 18,4% in new houses and 15,8% in used houses
registrating a record.
The new constructed houses in the year 2001 had
an average value of 1.193 Euros/sq.metre which is +70% compared to 1997 and the
average value of used houses was 1.064 Euros/sq.metre (+71% compared to the same
year. If we compare the evolution through the years we can confirm that there
is a huge increase in the value of housings and therefor of the price for buyers.
Although it's not possible to know exactly the percentage of increase there will
be in the future we can almost be sure that it will be increasing steadily.
 The
lookup table 2 shows the evolution of the housing in cities of the Canary Islands
with over 100.000 inhabitants between the years 1997 and 2000. In general terms
the average price of new houses is higher than used houses. In Las Palmas de Gran
Canaria the prices are also higher than those of La Laguna or Santa Cruz de Tenerife.
From 1997 and 2000 the percentage increase of houses was 65,6% (new houses) and
47,3% (used houses) in Las Palmas making it far more higher than Santa Cruz de
Tenerife or La Laguna.
Contrary to Las Palmas the percentage growth or
evolution of houses in La Laguna and Santa Cruz de Tenerife between 1997 and 2000
was higher in used houses than in new ones. In the lookup table 3 we can see the
corresponding statistic. 
To have a correct understanding from the evolution of the housing
prices we have to know how much of the new houses and how many of the used houses
are actually offered in the real estate market. The lookup table 4 shows the housing
totals and in the next column the number of them won by building works or refurbishment.
In 1992 the real estate market had 6.847 new houses registered and this number
increased up to 23.877 in 2001. The greatest difference happened in 1995 with
a percentage increase to the previous year of 40%. However, the trend started
to fall in 2000 with less houses in the market than the previous year. The percentage
of the refurbished houses in the real estate market, compared to the totals, was
only 3% and 8% between 1992 and 2001. 
We can also state that the evolution of the increase in housing
value through the past years has been steadily rising bu approximately 10% per
year. In Las Palmas this average was higher and in Santa Cruz de Tenerife only
the new built houses increased the average price.
One of the main reasons
for this situation is the law of offer and demand. The record was established
in 1999 with over 27.165 new houses in the real estate market. In the following
years the situation and trend started to revert although this can be seen as an
advantage to stop the saturation of the market and to limit property speculation.
The price of housing depends on this law of offer and demand and thanks to the
constant population growth of the Canary Islands it is expected to continue increasing.
| 
Lanzarote 
