Chinese Investors Enter Santa Cruz Real Estate Market: Targeting Properties Up to €470,000
In a notable development, a group of Chinese investors is actively seeking to acquire residential properties in Santa Cruz de Tenerife and nearby La Laguna, with a budget of up to €470,000.
Investment Strategy and Discreet Purchases
This initiative, spearheaded by the platform FastHogar, is touted as the largest network of property buyers and investors in Spain. A representative from a local real estate firm revealed that the investors operate under a “family office” model, which indicates they manage substantial family wealth. This group is reportedly interested in exploring more discreet purchasing avenues, avoiding traditional real estate platforms such as Idealista and Tecnocasa.
Attractive Real Estate Market Conditions
The real estate market in Spain, particularly within the Canary Islands, presents a compelling opportunity for investors. According to the agent, the region’s property prices offer significant protection against inflation and economic downturns. The primary investment focus for these buyers is on rental properties, which are projected to yield annual returns ranging from 4.5% to 6%. Such returns are particularly appealing to investors, including those from China.
Rising Trend of Chinese Investment in Spain
Chinese investment in the Spanish real estate sector has been on the rise in recent years. Data from the General Council of Notaries indicates that Chinese nationals have emerged as the leading foreign property buyers in Madrid over the past two years. This trend is not confined to the capital; in Zaragoza, family office investors are also targeting the real estate market, especially following the announcement of a significant electric vehicle battery factory by Stellantis and the Chinese company CATL.
In recent years, there has been a notable increase in Chinese purchases of properties priced above €500,000 to secure golden visas, which grant residency permits for such acquisitions. However, recent changes have abolished this golden visa provision, shifting the focus of Chinese investors toward property as an investment rather than a means of obtaining residency.
Chinese Interests in the Canary Islands
In the Canary Islands, an analysis by the Tenerife-based real estate agency Renova Costa Adeje highlights a strong interest from Chinese investors in various sectors. These include:
- Residential and tourism real estate
- Renewable energy projects, such as solar parks in Fuerteventura
- Aerospace technology developments in the Granadilla Technology Park
- Maritime logistics and smart port initiatives
Tenerife stands out as a prime location for Chinese investments, accounting for 45% of such investments in the Canary Islands. The island’s appeal is attributed to its modern infrastructure, including ports and airports, free trade zones offering tax benefits, and direct access to markets in Latin America and Africa.
Strengthening Sino-Canarian Relations
Renova Costa Adeje characterizes the growing ties between China and the Canary Islands as a “new Silk Road.” This relationship is facilitated by various factors, including a cargo terminal in Las Palmas equipped with Chinese cranes, fishing agreements that incorporate Chinese satellite technologies, and investments in hotels that merge tourism with logistics.
Historically, Chinese investments in the Canary Islands have focused on hotels, residential developments, and shopping centers. Noteworthy projects include the Playa del Duque tourist complex, which involved an investment of €150 million, and the Mar de Las Canteras residential project, where property values have seen a significant increase of 40% over five years due to Chinese investment.
Key points
- A group of Chinese investors is looking to buy properties in Santa Cruz de Tenerife for up to €470,000.
- The investment group operates under a “family office” model, managing substantial family wealth.
- Chinese investors are focusing on rental properties, with expected annual returns of 4.5% to 6%.
- Chinese nationals have become the leading foreign property buyers in Madrid in recent years.
- Tenerife accounts for 45% of Chinese investments in the Canary Islands, driven by its infrastructure and market access.
- The abolition of the golden visa provision has shifted Chinese interest towards investment rather than residency.
- Chinese investments in the Canary Islands include residential, tourism, renewable energy, and aerospace technology sectors.
