The rental housing market in the Canary Islands saw a modest monthly increase of 0.8% and a significant annual upsurge of 10.8% in February, setting the average rental price at €12.91 per square meter per month, as reported by the Fotocasa Real Estate Index. Interestingly, this annual increase of 10.8% represents the smallest year-on-year growth observed in the last 17 months, dating back to October 2022.
Looking at the broader Spanish context, all autonomous communities registered an increase in their annual rental prices in February. Notably, eight regions witnessed their rent prices soar into double-digit growth: La Rioja leads with a 15.2% hike, followed closely by Madrid and the Balearic Islands with 15.0% and 14.4% respectively, then Valencia, Cantabria, Asturias, the Canary Islands, and Castile-La Mancha, each surpassing the 10% growth mark. Other areas like Andalusia, Galicia, the Basque Country, and several more exhibited more moderate increases.
As of February 2024, nine autonomous communities have surpassed their historical maximum rental prices per square meter per month. The regions setting new records include Extremadura, Castilla y León, Galicia, and several others, with Madrid and the Balearic Islands topping the list with the highest rental costs.
PROVINCES AND MUNICIPALITIES OF THE CANARY ISLANDS
In the Canary Islands, both provinces experienced a rise in the annual rental rates in February 2024. Santa Cruz de Tenerife led with a 12.8% increase, followed by Las Palmas at 10.4%. Las Palmas reported the higher average rental rate between the two, at €13.12 per square meter per month, compared to €12.67 in Santa Cruz de Tenerife.
At the municipal level, notable increases were observed as well. Santa Cruz de Tenerife registered the most significant leap in February with a 32.2% increase, while Las Palmas de Gran Canaria saw an 11.7% rise. When it comes to the cost per square meter, Las Palmas de Gran Canaria emerged as the more expensive city to rent in, with costs reaching €13.70 per square meter, while Santa Cruz de Tenerife followed closely at €13.01 per square meter per month.
