canary islands housing prices bank spain 2025

Canary Islands housing prices soar nearly twice the national average

Real housing costs in the Canary Islands nearly double the Spanish average

The real price of housing in the Canary Islands – once inflation is stripped out – has risen by almost 4% annually between 2014 and 2025, nearly double the national average of just over 2%. While this is behind Madrid and the Balearic Islands, which lead the country in price increases, rental costs in the archipelago have also climbed by 1.7% per year over the same decade.

According to data from the Bank of Spain’s 2025 Annual Report, released this Monday, 22 June, these sustained price rises mean households face a significant financial burden to access housing, whether buying or renting. In 2024, households in the Canary Islands had to devote around 6.7 years of their net income to purchase a first home, and 26.4% of their net income to renting – figures in line with the Spanish average.

Arrecife and Santa Cruz lead price rises across the archipelago

The evolution of prices and household income has been highly uneven across the Canary Islands’ urban areas, with very significant increases recorded in Arrecife, Santa Cruz de Tenerife and Las Palmas de Gran Canaria. This translates into a greater effort for residents to access housing in these areas, particularly for rentals, though levels still remain slightly below what are considered sustainable thresholds.

Arrecife and Santa Cruz de Tenerife lead the region in housing price rises, far exceeding the regional average.

Non-resident buyers and tourist rentals driving demand

The report also highlights that demand in the Canary Islands has been bolstered by property purchases by non-residents and the growth of tourist rentals. In 2025, non-resident acquisitions accounted for 20.3% of all sales in the province of Santa Cruz de Tenerife and nearly 15% in the province of Las Palmas – both figures well above the Spanish average of 7.4%, according to the Bank of Spain.

Furthermore, the report notes that in Tenerife and Las Palmas provinces, these transactions increased by 12.5 and 7.9 percentage points respectively between 2007 and 2025.

Tourist rentals add pressure in Gran Canaria and Tenerife

Tourist rental properties are particularly significant in the rental markets of Las Palmas de Gran Canaria’s urban area and its tourist zone, accounting for 12.9% and 26.9% of the rental market respectively (2025 data).

In Tenerife, the pressure from tourist rentals is lower, even falling below the Spanish average. They represent 9.6% of supply in the urban area and 8.2% in the tourist zone.

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