The Impact of the Digital Nomad Visa on the Canary Islands Real Estate Market

The implementation of Spain's digital nomad visa in January 2023 is generating significant and lasting impact on the Canary Islands real estate market. This analysis examines transformations in demand, buyer profiles and emerging opportunities for investors.

Data from the first 24 months reveals 35% increase in real estate inquiries from foreigners working remotely, mainly from technology sector (45%), consulting (20%) and financial services (15%). Typical profile: professionals 28-42 years old, income €50K-€120K annually, seeking work-life balance without sacrificing professional career.

Demand concentrates on specific properties: 1-2 bedroom apartments in urban areas with nearby coworking (Puerto de la Cruz, Las Palmas), studios with terrace-office in complexes with pool and gym, and villas with dedicated office space in quiet residential areas. Common requirement: ultra-fast internet (500Mbps+) and ergonomic workspaces with natural light.

The medium-long term rental market (6-24 months) has experienced transformation. Owners are adapting units: installing premium fiber, creating office zones, improving furniture and offering contractual flexibility. Rates for premium 'digital nomad friendly' rentals: €1,200-€2,000/month for fully equipped 2-bedroom apartment, generating yields of 5-7% for owners.

Investors are developing projects specifically designed for this segment: buildings with integrated coworking, units with private offices, 1Gbps symmetrical internet, terraces with electrical outlets for outdoor work and common spaces for networking. Developments like Digital Hub Tenerife and Nomad Residences Lanzarote are pre-selling 70-80% of inventory before completing construction.

Projections for 2025-2027 anticipate sustained growth of 15-20% annually in this segment, driven by: normalization of remote work post-pandemic, Spanish tax advantages for remote workers, exceptional quality of life and improved air connectivity with European technology hubs. It's estimated that by 2027, digital nomads will represent 12-15% of the medium-term rental market on the islands.