In the Canary Islands, the monthly price change for second-hand housing increased by 0.8%, with an annual growth of 23%, setting the average price at 2,470 euros per square meter in February, as indicated by Fotocasa‘s Real Estate Index. This annual increase of 23% is part of a continuous trend, marking the ninth consecutive month of year-on-year increases above 20% since June 2023.
María Matos, Director of Studies and Spokesperson for Fotocasa, highlights the significant resurgence in purchase prices. She notes the persistent demand pressure on the limited supply, exacerbated by expectations of a potential rate decrease hinted by the European Central Bank, which has invigorated the market and hindered price adjustments. The shortage of housing stock contributes to this upward price trajectory, signaling a year of increasing prices and growing unaffordability in 2024.
Reviewing the annual housing sale prices, it’s observed that 16 Spanish regions recorded year-on-year price increases in February. Notably, five communities saw increases exceeding 10%, including the Canary Islands (23%), Madrid (14.8%), the Region of Murcia (12.2%), the Valencian Community (11.2%), and the Balearic Islands (11%).
In the context of Spain’s Autonomous Communities, Madrid and the Balearic Islands lead with the highest prices for second-hand property, at 3,928 euros/m2 and 3,848 euros/m2, respectively, followed by the Basque Country, Catalonia, and then the Canary Islands.
At the provincial level, February saw year-on-year housing price increases in both provinces analyzed, with Santa Cruz de Tenerife witnessing a substantial rise of 29.9% and Las Palmas by 13.3%. Santa Cruz de Tenerife tops the price chart as the most expensive province at 2,793 euros/m2, with Las Palmas following.
At the municipal level, all 22 cities analyzed by Fotocasa experienced year-on-year price increases in pre-owned housing. Remarkably, eight municipalities saw increases over 20%, including Guía de Isora, La Orotava, Santa Lucía de Tirajana, Arona, Puerto de la Cruz, Santiago del Teide, Ingenio, and Santa Cruz de Tenerife capital. The priciest towns per square meter in February were Adeje, Guía de Isora, Santiago del Teide, Mogán, and Arona.
