Spain: Canary Islands (Islas Canarias)

Overview

The Canary Islands (or Canaries) are located in the Atlantic, 95km (60mi) off the west coast of Africa and 1,150km (700mi) from the Spanish mainland. They consist of seven inhabited islands (in order of size): Tenerife, Fuerteventura, Gran Canaria, Lanzarote, La Palma, La Gomera and Hierro, with a total population of around 1.9 million and a total area of 7,272km2 (2,808mi2). The islands are divided into eastern and western administrative provinces: the greener, western province of Santa Cruz de Tenerife includes the islands of Tenerife, La Palma, La Gomera and Hierro, while the more arid eastern province of Las Palmas de Gran Canaria embraces Gran Canaria, Fuerteventura and Lanzarote. The islands are volcanic in origin with imposing geological formations and spectacular vegetation, and are among the most dramatic in the world. They were colonised by Spain in the 15th century, before which the inhabitants (the Guanches) were said to have been living in the ‘Stone Age’. The Canaries attract a potpourri of foreign residents, although the Germans and British (the first Caucasian settlers) predominate (the lingua franca is English).

The islands enjoy a climate described as eternal spring (the Romans called them the Fortunate Islands) and they’re one of the principal, year-round holiday destinations for Europeans (particularly in winter), attracting over seven million visitors a year. The Canaries enjoy mild, warm winters and temperate summers, with daytime temperatures usually between 20°C and 27°C (68°F to 81°F) throughout the year. The inland region of Tenerife experiences around 3,400 annual hours of sunshine, the highest in Spain. Rainfall (mostly between November and February) is low and varies from less than 100mm (4in) a year on Fuerteventura and Lanzarote, to 750mm (30in) in the inland areas of Gran Canaria and Tenerife. The ‘best climate in the world’ is reportedly found 91m (300ft) above sea level in the south of Gran Canaria (Fuerteventura and Lanzarote are similar). Not surprisingly, the islands have a shortage of natural drinking water, particularly Fuerteventura and Lanzarote, much of which is provided by desalination plants. The main industry is tourism, although there are also major farming and fishing industries. An added attraction of the Canaries is that they aren’t incorporated into the EU tax system and enjoy lower taxes than the mainland.

The main islands of Tenerife, Lanzarote, Fuerteventura and Gran Canaria have international airports and are well served by inexpensive charter flights from the mainland, the UK, Germany and other European countries. Ferry services operate from Cadiz on the mainland to Tenerife, Las Palmas, Lanzarote and Fuerteventura, and there are large sea ports at Las Palmas and Santa Cruz accepting cruise ships. Frequent inter-island ferry and jetfoil services operate throughout the islands.

Property on the islands is a good investment and there’s excellent buy-to-let potential, particularly on Tenerife and Gran Canaria (both year-round destinations). After years of higher property prices than the mainland, prices in the Canaries are now on a par with other resort areas or cheaper. Prices rose by 12 per cent in 2004.

The following is a guide to the individual islands (in order of population size).

Tenerife

Tenerife is the largest and best known of the Canaries (2,053km2/793mi2) with a population of around 812,000 (the islanders are called Tinerfeños), including a large number of foreign residents. There’s intense rivalry between Tenerife and Gran Canaria, who have fought over the leadership of the islands for centuries. The capital, Santa Cruz de Tenerife, is a smaller, quieter and altogether nicer town than Las Palmas (Gran Canaria), although it isn’t much favoured by foreign homeowners. The island is home to the Canaries’ university at La Laguna, the island’s former capital. Tenerife is split in two by the mountains; the south is arid with sandy beaches, while the north is lush with banana trees and a dramatic, rugged coastline, ancient woodland and black sandy beaches in Taganana in the far north-east. Tenerife is noted for its wealth of natural beauty, rich sub-tropical vegetation, and an extraordinary range of flora and landscape. The Orotava Valley and Las Cañadas National Park are national treasures and include Spain’s highest mountain, the snow-capped Pico del Teide (3,718m/12,198ft).

The island is highly developed with many hotels and apartment complexes. The most popular resorts are along the west coast and include Playa de Las Américas, Puerto de la Cruz, Los Gigantes and Los Cristianos, while El Beril, Ouerto Santiago and Playa Paraiso are quieter. The beautiful Oratava valley was the centre of early tourism and remains popular with foreign residents. Tenerife offers a vast range of facilities and everything you could wish for from a popular holiday destination. New roads have vastly improved communications and the island has two airports. There are frequent year-round flights from the UK. The island is popular with holiday homeowners and also has numerous time-share developments. The property market is good, although the 9 per cent rise in prices in 2004 was one of the lowest in the country. Two-bedroom apartments start at €120,000 and three-bedroom at €150,000.

Gran Canaria

Gran Canaria with a population of around 790,000 is the third-largest island with an area of 1,532km2 (592mi2). The capital, Las Palmas (population 350,000), is the largest town in the Canaries (with the largest port in Europe) and is the region’s capital and seat of government. It’s a bustling cosmopolitan town with an interesting old quarter, a 7km (4mi) coastline and a large foreign population. The north (the most beautiful part of the island) and west coasts are rugged and remote with steep cliffs, while the south is noted for its excellent long beaches such as La Playa del Inglés, Playa Canteras, Playa de San Augustín and Playa de las Maspalomas, interspersed with traditional fishing villages. Huge modern resorts dominate the south coast, most of which are ugly and lacking in charm (one of the few exceptions is Mogán Port). Inland, there are stark mountains and tranquil valleys cultivated with sugar canes, banana plantations (in the north), papaya and mango trees. The island is also famous for its magnificent sand dunes.

Gran Canaria has a stable property market, although property is more expensive than on the other islands and it’s difficult to find a two-bedroom apartment below €125,000. Three-bedroom villas generally start at €400,000.

Gran Canaria has good communications between the airport, the capital and the southern resort areas. The airport has frequent year-round flights to many destinations, particularly the UK and Germany. Ferries from the capital sail to neighbouring islands and mainland Spain (Cadiz).

Lanzarote

Lanzarote with a population of 116,800 is the fourth-largest island covering an area of 813km2 (314mi2). Arrecife, the island’s capital and main port, is a rundown, unattractive modern town. The old capital of Teguise 11km (7mi) inland is more interesting and there are also a number of unspoilt inland villages. The island has a unique character and is noted for its whitewashed houses with bright green doors and shutters, profusion of exotic flowers, vineyards, palm trees, camels and fine white beaches (some say that Playa Famara is the best beach in the Canaries). Lanzarote is famous for its spectacular Fire Mountains and their lunar landscapes, stark volcanic rocks and over 300 extinct volcanoes, which form the Timanfaya National Park (covering around a third of the island). Unlike Tenerife and Gran Canaria, Lanzarote isn’t overdeveloped, although it has grown hugely in popularity in the last decade and there are a number of massive new coastal developments (timeshare developments abound). Locals are now, however, strongly opposed to new developments and the island’s authorities have introduced strict planning regulations. The island’s resorts are mostly located in the east of the island and include Arrecife, the Costa Teguise and Playa de los Pocillos, while new developments include El Puerto del Carmen and Playa Blanca (on the southern coast).

The property market is presently booming in Lanzarote and property here is considered a good investment, particularly as it’s likely that construction will be severely limited in the future leading to a shortage of resale properties. A two-bedroom apartment in a resort area costs from €120,000 and a small three-bedroom villa from €300,000.

Lanzarote has good communications and there are year-round flights from its airport (one of Spain’s busiest) to several UK destinations. Frequent ferries connect the island with the other Canary islands.

Fuerteventura

Fuerteventura has a population of 80,000 and is the second-largest island after Tenerife, covering an area of 1,688km2 (652mi2). Puerto del Rosario, the island’s capital and major port, has a lively fishing industry and is home to the Spanish foreign legion. The island is tranquil and unspoilt with long white sandy beaches (the best in the Canaries, some say the world), and is noted for its excellent fishing, windmills, camels, surfing and windsurfing. The island has almost no rainfall and little vegetation, and its arid terrain is reminiscent of the desert landscape of north-west Africa with its Sahara-like sand dunes. Most resorts are situated along the 25km (16mi) of southern beaches south of the airport, although Corralejo in the north (a fishing port with superb beaches) is a popular resort. Fuerteventura is virtually undiscovered by the tourist hordes and is an ideal spot for a relaxing holiday away from it all. Communications are reasonable, although out of season the frequency of flights is greatly reduced and except for the capital and resort areas, roads are poor. There’s a ferry service between the capital and Gran Canaria.

The property market on the island is currently booming and growing by some 20 per cent a year with a corresponding rise in prices, although property on Fuerteventura is still cheaper than Tenerife and Gran Canaria. Prices for a two-bedroom apartment start at €100,000 and for a villa with a small garden at around €200,000. Like the other islands, building plots are now in short supply on Fuerteventura.

La Palma

La Palma is the most westerly island and with a population of around 84,300 it’s the fifth largest island. It’s 20 minutes by air from Tenerife and covers an area of 728km2 (281mi2). The capital is Santa Cruz de la Palma, an attractive, unspoilt town which is noted for its colonial architecture. La Palma is the greenest of the islands with the most varied landscape and is renowned for its majestic mountains (reaching 2,426m/7,959ft at Roque de los Muchachos, site of one of Europe’s most important observatories); lush woodlands; terraced hillsides (where crops are grown); beautiful coastline and its huge volcanic crater (one of the world’s largest at 9km/5.5mi in diameter), the Caldera de Taburiente, which is a national park. La Palma was a latecomer to package tourism due to its thriving, self-supporting agricultural industry. The island has a small airport with flights to Tenerife, Gran Canaria, Madrid and some German destinations, but none directly to the UK, although connecting flights are available. Seats are in short supply and early booking is advisable. Ferries run from La Palma to Tenerife (7 hours) and Gran Canaria.

La Gomera

La Gomera has a population of 21,200 and is the second-smallest island in the Canaries covering an area of 535km2 (207mi2). The capital, San Sebastian, is where Christopher Columbus set sail from on his voyage to discover America in 1492. The island is almost totally unspoilt with stunning valleys and mountains reaching 1,487m (4,879ft) on Mount Garajonay (Garajonay National Park). It’s noted for its steep cliffs, extraordinary rock formations, lush valleys, litchen-covered rain forests, terraces, date palms, fertile red soil and the natives’ strange whistling language used to communicate over long distances. It’s becoming more popular with foreign residents looking for a quieter life than is available on Tenerife. La Gomera’s airport offers flights to Tenerife (Los Rodeos) and Gran Canaria only. The island can also be reached by ferry from Tenerife, La Palma and El Hierro.

El Hierro

El Hierro is the smallest of the inhabited islands with around 10,000 inhabitants (and once the farthest westerly point known to man) with an area of 278km2 (107mi2). The main town is Valverder, the only Canary island capital that’s situated inland, while the island’s beaches are located along the southern, inaccessible coastline (El Julan). Its dramatic landscape is wild and remote, containing a massive crater, and the island is almost totally undeveloped and rarely visited by tourists. Cattle and livestock farming are the mainstays of the local economy and the island produces wine (considered the best in the islands). El Hierro has a small airport offering flights to Tenerife and Gran Canaria only. There’s a daily ferry service between the island and Tenerife.

Property on La Palma, La Gomera and El Hierro

The property market on all three islands has grown in recent years, although resale property is in short supply and new construction is limited. Prices have risen and are expected to do so for the immediate future, and are higher on La Palma where prices have risen considerably over the last two years. A two-bedroom apartment costs from €90,000 (€125,000 on La Palma) and a country property with a large plot costs from €250,000.

© Survival Books Limited 2005

“Buying a Home in Spain 2006” 5th Edition, David Hampshire.

Reproduced with the permission of Survival Books Limited.

Further information on this topic can be found in “Buying a Home in Spain 2006” 5th edition, by David Hampshire.

For extensive, annually updated information about buying a property in Spain, you can purchase this book at www.survivalbooks.net