Big differences persist in sources of property prices in Tenerife and the Canary Islands

PRLog (Press Release) – Oct 30, 2007 – Big differences still persist with Government property costs in the Canaries.

Value It España, the assessor and publisher of Tenerife property costs, today compares the latest housing costs as of the end of September issued by the Ministry of Viviendas with those of the database from its recent survey.

For the Canaries, the central government declares that the cost of property per square metre, as an average is 1809 euros, up 6.4% on the previous third quarter of last year. This also represents a 0,06% increase on the previous quarter ending June 2007.

The Value It database shows an average cost in Tenerife of 2099 euros per square metre, a 16% higher cost for the same period.

J Gardner, of Value It commented that the differences will still be explained by under declarations of the real selling price and the fact that prices will be reduced by buyer negotiations. “What is more telling is that there was no movement in prices between the last two quarters, suggesting a market where prices are falling. There has been an expectation that the government figures for costs would rise as fewer people under declare the real selling price. If this is happening then these figures of the government suggest falling prices.  Even if the market is flat in pricing terms, with general inflation at around 3%, that’s a 3% drop in property asset values”

The answer to those having concerns about buying into a flat or falling market, according to Value It, is careful and rigorous research into costs per square metre for each type of property in each area. “ There will always be those with realistically priced properties, willing to accept offers, and if you can demonstrate to a seller  the market pricing facts, then one should still be able to buy well”


Value It España is based in Santa Ursula, and publishes e-books with the ranges of property prices for each area of Tenerife, designed to give purchasers and estate agents independent market facts as a guide to decision making.