What happens to the real estate market in Mogán?

We have been through crises before. As the world's largest real estate chain with 45 years of experience, we offer safe and easy property transactions in your language. In Europe, RE/MAX has 1800 offices. In Gran Canaria we are the largest company with 10 offices. Many wonder how the pandemic and the aftermath will affect housing prices in Gran Canaria. In this article, we take a closer look at what to expect in the municipality of Mogán.

Who gets hit?

- The market consists of several segments. The stock exchanges have plunged and large values ​​have been lost in a short time. The Covid-19 crisis may therefore leave deep scars for real estate investors. This can slow down started and planned real estate projects and if the pandemic becomes a long-term condition with a failure to sell, property prices will fall.

Which price ranges fall the most?

Based on former resessions in the property market we are working with a logical pattern where we can predict which types of homes and price ranges that will be affected first and we can predict the expected turnover rate. In the event of a negative development, not all price ranges are hit equally hard or at the same time. To make it easy, homes in the upper price range, ie 500,000 € and up, are hit the hardest. Then 200,000 - 500,000 € and finally the lowest price range, up to 200,000 €. When the market recovers, property prices rise the fastest from the lowest price range to the highest. The upper price range will therefore be hit hardest both before and after fluctuations in propertu prices and the turnover rate will be low. When the pandemic and the aftermath have subsided, prices rise again. 

Getting the right information


One of the biggest challenges of the financial crisis in 2008 was that people were trying to read up on the real estate market themselves. Some read only headings, others did not distinguish between areas and general statistics were used. It ended up with conclusions based on the wrong foundation and many missed out on good opportunities, and then later paid significantly more for similar properties. We think this is a shame and we will try to avoid this by guiding our customers. It's easy to be wise after the event, but it doesn't have to be that way.

Need an agent?

- It is easy to be a home buyer or home seller when the sun is shining and the requirements for in-depth knowledge and expertise are not necessary for successful home shopping. It is not that simple when it is no longer predictable and there are rapid changes in the markets. Therefore, consulting your local agent may be wise, but choose your agent carefully. It is in extraordinary situations that you get to test the trust and quality at the real estate agencies, especially how much the agent is willing to work for you. Find a reputable real estate agency with an agent you feel you can trust. Let the agent prove their expertise in the area you want to buy by asking everything you are wondering about.


How to choose the right agent

- A professional real estate agency must have experience from previous crises, be able to know something about demand, prices and how market trends are developing, good and bad. Otherwise, the agent cannot help you avoid unnessasary time spent, frustration and help you buy or sell at the right price. One tip is that before contacting agencies, you can make up your mind by studying their websites. There are usually customer references online and you can look at the marketing. This is normally enough to choose who you should contact first or steer clear of.

Do you need "luck" to make a good deal?

We help many people be "lucky" all the time, so we don't believe in that term much in our industry. It is the same factors that can help anyone to make good real estate investment. Regardless of the market, there are opportunities, those who are active will score the best property purchases.

How do you become a winner?

- First and foremost, it's about being active and engaging a competent agent who is willing to monitor the market for you, stay informed and prioritize you when something interesting pops up. This way, you can be notified at the right time and before others. And if you have the financing in order, the dream home can quickly become yours. What many people forget is that someone must be the "lucky" one you hear about and by choosing the right agent it might as well be you.

Housing prices in Mogán

- Our forecasts indicate that there will be price adjustments, but that elsewhere in Spain it will be far tougher. When we study the demographics of Mogán, the municipality differs significantly from other municipalities on the island. There are far more foreigners who own holiday homes in Mogan. This group consists of many elderly and resourceful homeowners who do not have mortgages on their properties. Many of these have no plans to sell their holiday homes in the world's best climate. This particular demographics combined with the fact that few new homes are being built result in a high demand and that prices remain extremely good in Mogán. For this very reason, housing prices also held up well through the financial crisis in 2008.

We expect that we will experience a price adjustment and that someone must sell their homes at a lower price. So be active and use an agent so you make a good deal. 

- Regardless of crises, remember that Gran Canaria is Europe's most popular holiday paradise due to, among other things, direct flights, short travel time, stable region and summer temperature all year round. This means that everything is indicative of a functioning real estate market and rapid rehabilitation.

We're here to help you! Contact us today for free and non-committal chat about your needs.