canary islands housing price rise 2026

Canary Islands tops Spanish housing price rise again

Canary Islands tops Spanish housing price index

The Canary Islands has once again topped an unwelcome national ranking, this time for the rising cost of new build homes. Over the last 12 months, the average price of a newly built property in the archipelago has increased by 12% — nearly three full percentage points above the national average of 9.1%. Only Aragón and Asturias come close, with both regions recording an 11.6% rise. At the other end of the scale, the Balearic Islands posted the lowest annual increase, at just 2.5%.

First quarter spike drives the annual figure

The sharp annual rise in new build prices across the Canary Islands is largely due to the performance in the first quarter of this year, as the final three months of 2025 gave way to January-March 2026. In that three-month window alone, prices surged by 10% — compared to the 12% annual figure for the period from April 2025 to March 2026. According to statistics published this Monday by Spain’s National Institute of Statistics (INE), based on the Housing Price Index (HPI, base year 2015), the largest price increases across all housing types (new and second-hand combined) were recorded in Aragón and the Region of Murcia (both 15.6%), followed by Castile and León and the autonomous city of Ceuta (both 14.9%). The smallest rises were seen in Catalonia and the Chartered Community of Navarre (both 10.5%), and the Basque Country (10.3%).

Positive annual rates across all Spanish regions

All Spanish regions and autonomous cities recorded positive annual rates for average housing prices in the first quarter of 2026 — the most recent official data available. In the Canary Islands, second-hand housing rose by 10.6% year-on-year. That is less than the increase for new build properties, and also below the national average for second-hand homes, which stood at 13.5% over the same 12-month period. When looking at the combined price of all housing in the archipelago (new and second-hand together), the Canary Islands posted an average annual increase of 10.7%, compared to the national figure of 12.9%.

National picture: new vs second-hand housing

Across Spain as a whole, the annual rate of change in the Housing Price Index (both new and second-hand) was 12.9%. New build prices rose 9.1% year-on-year, while second-hand homes recorded a 13.5% increase. Nationally, housing prices rose by 3.5% compared to the previous quarter (October-December 2025). The Housing Price Index, with a base value of 100 in 2015, remained unchanged quarter-on-quarter at 12.9% in the first quarter of 2026 (new and second-hand combined). However, broken down by property type, the annual rate for new builds fell by 2.1 percentage points to 9.1%, while the price of second-hand homes rose by 13.5% year-on-year — an increase of 0.4 percentage points compared to the previous quarter. In the first quarter of 2026, both new and second-hand property prices in Spain rose by 3.5% compared to the fourth quarter of 2025.

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