In the Canary Islands, the Housing Price Index (HPI) saw a 2.1 point increase in the third quarter, reaching 6.6%. The annual rate for new housing dropped by 2.7 points to 11.3%, while second-hand housing experienced a 6.2% increase, 2.5 points higher than the previous quarter.
During the same period, the cost of free housing in the Canary Islands rose by 4.5% compared to 2022, largely due to a significant 11% increase in new construction prices. This is the highest growth observed in 16 years, as reported by the National Statistics Institute’s (INE) Housing Price Index (IPV). This increase marks the 38th consecutive quarter of year-on-year price rises for free housing.
Specifically, new housing prices in the third quarter soared by 11% year-on-year, 3.3 points more than the previous quarter, marking the steepest rise in the past 16 years. The price of used housing also went up by 3.2% compared to 2022, a rate slightly higher than in the second quarter and the highest since Q4 of 2022.
Navarre led the annual increase in free housing prices, recording a 7.6% rise. It was followed by the Canary Islands at 6.6%, Cantabria at 5.9%, and Andalusia at 5.8%, with Ceuta and Melilla also showing significant increases.
The most modest year-on-year price increases were in Castilla-La Mancha and Extremadura, with rises of 1% and 1.1%, respectively.
On a quarterly basis, housing prices across Spain surged by 2.5% from Q2 to Q3 2023, the highest increase since Q1 2022. New house prices rose by 4.1% between July and September, marking the largest quarterly increase since Q3 2020. Meanwhile, second-hand house prices increased by 2.2%, consistent with the previous quarter’s rate.
All autonomous communities saw house price increases in this period, with Navarre and the Balearic Islands experiencing the largest increases (3.1%), followed by the Basque Country and the Canary Islands (3%). The most modest increases were observed in Castile-La Mancha and Extremadura, both at 0.6%.
