The rental housing market in the Canary Islands has witnessed significant fluctuations in August, with several key trends worth noting. According to data from the Fotocasa Real Estate Index, the price of rented housing in the region has experienced both monthly and yearly variations. In terms of the monthly variation, there was a 0.5% decrease, resulting in a price of 12.83 euros per square meter per month in August. This decrease of 0.5% marks the first monthly decline in 2023.
However, when looking at the year-on-year variation, the situation appears more dramatic, with an 18% drop in rental prices compared to the previous year.
A total of 16 communities in the Canary Islands saw year-on-year price increases in August. Notably, six of these communities experienced double-digit increases, with the Balearic Islands leading the pack with a staggering 22.1% rise. The Canary Islands followed closely with an 18% increase, and other regions with significant year-on-year price hikes include Valencia (15%), Cantabria (12.9%), La Rioja (12.5%), Basque Country (10.4%), Madrid (9.5%), Andalusia (7.8%), Catalonia (6.5%), Galicia (6.4%), Castilla y León (5.4%), Navarre (5.1%), Castilla-La Mancha (5%), Asturias (5%), Aragon (1.8%), and Murcia (1.2%). However, Extremadura was the only Autonomous Community to experience a decrease in rental prices, with a -1% change compared to the previous year.
In August, three regions surpassed the maximum historical rental prices per square meter per month. The areas with the highest prices across the historical series are Basque Country (15.06 €/m² per month), Asturias (9.11 €/m² per month), and La Rioja (8.90 €/m² per month).
When considering the ranking of Autonomous Communities (CC.AA.) with the most expensive prices in Spain, the Balearic Islands and Madrid take the lead with prices of 17.01 €/m² per month and 16.90 €/m² per month, respectively. Following closely behind are six more communities with prices exceeding 10.00 €/m² per month, including Catalonia (15.88 €/m² per month), Basque Country (15.06 €/m² per month), Canary Islands (12.83 €/m² per month), Cantabria (12.39 €/m² per month), Comunitat Valenciana (11.40 €/m² per month), and Navarre (10.93 €/m² per month).
RENTALS IN THE CANARY ISLANDS
Turning our attention to the provinces within the Canary Islands, both Las Palmas and Santa Cruz de Tenerife saw year-on-year price increases in August 2023. Las Palmas experienced an 18.6% increase, while Santa Cruz de Tenerife’s increase was slightly lower at 16.9%.
In terms of specific prices, Las Palmas had the highest price at 13.24 €/m² per month, closely followed by Santa Cruz de Tenerife with 12.18 €/m² per month.
Both cities, Santa Cruz de Tenerife capital and Las Palmas de Gran Canaria, observed an increase in rental property prices compared to the previous year. Santa Cruz de Tenerife capital had the highest year-on-year increase at 18.6%, while Las Palmas de Gran Canaria’s increase was also significant at 17%.
When examining the price per square meter in August at the municipal level, Las Palmas de Gran Canaria led with a rate of 13.55 €/m² per month, followed by Santa Cruz de Tenerife capital at 11.37 €/m² per month.