Canary Islands Police Dismantle €100,000 Housing Fraud Scheme
Spanish authorities have arrested two suspects for defrauding 108 victims of over €100,000 by illegally selling non-buildable rustic land in the Canary Islands.
A housing crisis in the Canary Islands, fueled by high tourism demand and a lack of available homes, has created the perfect environment for a major fraud scheme. The Civil Guard in Granadilla de Abona recently dismantled an operation that swindled over €100,000 from 108 victims over the past 18 months by selling land that could not legally be built upon.
The scammers used Facebook to advertise 1,000-square-meter plots in the Llano del Letrado and Hoya Las Perdices areas. They promised buyers the chance to build homes with gardens and swimming pools, offering a low price of €15 per square meter. Interested buyers were asked to pay a €1,000 deposit to reserve a plot.
However, investigators found that the land is classified as rustic and intended only for agricultural use, making any residential construction illegal. Furthermore, the suspects did not own the land they were selling. When contacted by the police, the actual owners confirmed they had never authorized any sales or development projects on their property.
To keep the scam going, the perpetrators used stall tactics. When buyers grew concerned about the lack of progress, the scammers made excuses, falsely claiming that they were in the process of rezoning the land. If victims became too suspicious, the scammers would simply blame their business partners or other third parties.
The Civil Guard has arrested two suspects, who are now facing the Court of Instruction in Granadilla de Abona. This case serves as a stark reminder of how scammers are exploiting the desperation of people struggling to find affordable housing in a difficult market.