According to the New Housing Survey conducted by the Valuation Society, the price of new housing in the Canary Islands has seen a significant increase of 5.7% compared to the same month last year, reaching an average of 1,785 euros/m2 in June. Moreover, compared to the previous six-month period, there has been a 2.4% price hike.
Notably, Las Palmas de Gran Canaria stands out as the provincial capital with the highest average price of new housing, reaching 1,885 €/m2, surpassing Santa Cruz de Tenerife, where the average price stands at 1,599 €/m2. However, Santa Cruz de Tenerife has recorded the highest price increase over the last year, with a 6.1% rise, while Las Palmas experienced a 5.5% increase.
Among the most remarkable municipalities, besides Las Palmas and Santa Cruz, are San Bartolomé and Mogán, with average prices of 1,829 €/m2 and 1,803 €/m2, respectively. The municipalities of Arona and Arrecife have experienced the highest price increases over the last year, with 7.0% and 6.8% respectively.
The general delegate of Sociedad de Tasación in the Canary Islands, Javier Delamo, pointed out that although the price of new housing has risen in the region over the past twelve months, the growth rate is lower than the national average. The demand for new construction in dynamic areas such as the Canary Islands is high, but the supply cannot meet the demand, leading to rising prices despite higher construction costs.
Regarding real estate confidence, the Real Estate Confidence Index of Sociedad de Tasación increased by 0.6 points during the second quarter of 2023 in the Canary Islands, reaching 50.2 points. However, it still remains three points below the figure recorded a year ago.
In terms of affordability, the Affordability Index of Sociedad de Tasación, which evaluates the balance between the average housing price and the capacity of individuals to acquire it, registered 84 points in the second quarter of 2023 for the Canary Islands. This represents a decrease of two points compared to the previous quarter and a decrease of 25 points compared to the previous year.
The decline in the affordability index has been observed across all autonomous communities due to the increase in interest rates and financing costs, making it more challenging for citizens to afford homes. The Canary Islands are among the ten regions where the index does not reach 100 points, indicating that an average citizen with an average salary would not be able to afford a home without taking on excessive debt. Nevertheless, the Canary Islands experienced the least decline in the index on a quarterly basis, only surpassed by Aragon.