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Challenges and Perspectives of the Real Estate Market in Fuerteventura for 2025.

10 Jan, 2025

Some notes on the real estate market.

The forecasts of all major real estate experts agree that in 2025, housing prices will continue to rise, albeit at a slightly lower rate than in 2024, when the average increase exceeded 8%.

Across Spain, foreigners account for 20% of real estate transactions, and in Fuerteventura, this percentage is even higher—reaching approximately 50% in many localities.

 

From Fuerteventura, we face a series of challenges in the real estate market, summarized as follows:

1. Shortage of Supply and Access to Housing

While our firm advises on the largest developments on the island, the supply remains insufficient to meet the high demand that reaches us daily.

We also recognize the importance of addressing the need for public or affordable housing in this strained market. We hope projects will emerge under the protection of the Canary Islands Emergency Housing Decree 1/2024 and that its measures will effectively alleviate the problem of housing access. However, these efforts must go beyond small-scale initiatives and focus on developments with a higher number of units.

Our team is currently advising on several ambitious projects that we hope will materialize soon. These aim to serve the fundamental legal right of access to housing, a right that has been neglected due to market stagnation and administrative inaction.

Public administrations bear significant responsibility for this shortage. It is crucial to act swiftly and effectively, facilitating proposals and expediting project approvals.

2. Vacation Rentals

This issue is set to become the greatest challenge we will face, as the new law currently under parliamentary debate is expected to be approved by March-April 2025 if proceedings proceed at a normal pace.

As you may know, the proposed law has been the subject of intense public debate. The provisions included are highly restrictive and may effectively close the market to new properties being managed as vacation rentals.

We are aware of this risk, which is why we continue to emphasize the importance of obtaining the necessary vacation rental license now, while it is still feasible. It is likely to become significantly more challenging to obtain such licenses in the near future.

We hope the parliamentary debate will consider all perspectives and avoid making vacation rentals the sole scapegoat for the housing access crisis in the Canary Islands, particularly in Fuerteventura.

New properties are expected to face even greater difficulties entering the market, and we are closely monitoring the final version of the law.

We recognize that second homes—properties never intended as permanent residences—are being unfairly penalized as a solution to the housing crisis in the Canary Islands. This approach is disproportionate. In many areas of Fuerteventura, particularly in the north of the island, numerous developments and homes were never designed or intended to serve as permanent housing and should not bear the brunt of this new legislation.

 

If you need help or legal advice concerning any of these topics, please do not hesitate to contact our office.

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