canary islands house prices soar sales plunge january 2026

Canary Islands House Prices Soar 16.5% as Sales Plunge

Canary Islands Housing Market Sees Prices Surge as Sales and Mortgages Fall

The purchase and sale of homes in the Canary Islands fell by 13.6% in January, while the average price shot up by 16.5%. At the same time, mortgage loans for property acquisition dropped by 12%, according to data released this Thursday by the General Council of Notaries. These figures paint a picture of a market grappling with a housing deficit that is failing to meet growing demand, driving up prices and making access increasingly difficult, particularly for young people and those with fewer resources.

Record Prices Amidst Falling Transactions

This data follows a year where 2025 closed with a price increase of 7.5%, breaking the records set in 2007 at the height of the property bubble, while sales transactions rose by 4.4% to achieve the second-highest number of operations in the historical series. The market has now started the year with an annual fall in sales of 11.4%, mirroring a drop in mortgages for home purchase, which decreased by 6.8% in January after 21 consecutive months of growth. Prices, however, accelerated their climb to 9% nationally.

Price Breakdown: Flats and Houses Exceed Bubble Peaks

In January, the average price per square metre in Spain stood at €2,065. The price of flats rose by 10.6% compared to the same month last year, reaching €2,382/m². Meanwhile, the price of detached houses increased by 7% to €1,539/m², surpassing for the first time the peak of July 2007 (€1,503/m²). It is worth noting that flat prices had already exceeded the bubble maximum (€2,148/m²) in January 2025 (€2,155/m²).

Regional Variations: Canaries Among Highest Increases

Property prices rose in January in 13 autonomous communities. The most notable double-digit increases were seen in La Rioja (27.5%); Castilla-La Mancha (23.3%); Valencia (16.7%); the Canary Islands (16.5%); Cantabria (15.9%); the Balearic Islands (14.2%); Asturias (13.7%); Madrid (11.5%) and Catalonia (10.9%). In contrast, prices fell in Navarre (-4%); Extremadura (-3.7%); the Basque Country (-0.8%) and Murcia (-0.4%).

Sales and Mortgage Data Reflects Cooling Market

A total of 49,685 home sales were registered in January. Sales of flats decreased by 12.6% to 37,405 units, while sales of detached houses fell by 7.8% to 12,280 units. Housing transactions decreased in all regions except Castilla-La Mancha (6.1%) and La Rioja (5.6%). The sharpest declines were in Cantabria (-18%); Madrid (-15.9%); Andalusia (-14.2%); Navarre (-14.2%); Galicia (-13.9%); the Canary Islands (-13.6%), the Basque Country (-13.3%) and the Balearic Islands (-13.2%).

In January, the granting of mortgage loans for home purchase fell by 6.8% after 21 consecutive months of growth, with 26,450 operations recorded. However, the average amount of these loans did increase, by 13%, to an average of €186,857. Just over half of all sales (53.2%) were financed by a mortgage loan. For these purchases with financing, the loan amount represented on average 72.3% of the property price.

Mortgage loans saw more significant declines in Andalusia (-14.5%); Valencia (-13.4%); Castilla y León (-13.3%); Cantabria (-13.2%); Murcia (-12.3%); the Canary Islands (-12%); Aragon (-11.7%) and Galicia (-11.5%). In contrast, Castilla-La Mancha (15.3%), Catalonia (2.5%) and Asturias (1.1%) were the only three regions where the number of mortgage loans increased.

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