In March 2024, rental flats in the Canary Islands saw an average price of €11.77 per square metre, marking the highest quarterly rise in Spain at 8.98%. Annually, this increase was even more pronounced at 24.16%, leading the national rankings once again. Month-over-month, prices rose by 2.79%, the third highest increment nationally, as reported by the quarterly rental price report from pisos.com.
The Canary Islands ranked as the fourth most expensive region in Spain for renters, trailing behind areas such as the Balearic Islands, where the cost was €17.60 per square metre. Nationally, the average rental price in Spain stood at €11.44 per square metre in March 2024, reflecting increases of 1.06% over the previous month and 2.88% over the quarter. Yearly, the national increase was 7.82%, with no signs of a plateau in rental price hikes.
Ferran Font, director of research at pisos.com, attributes the relentless price increases to reduced market supply and heightened demand. He emphasizes the necessity of making rental properties a safe and profitable investment option. Font also highlights the growing financial strain on tenants, as rental costs consume an increasingly significant portion of salaries, posing severe challenges to social welfare and access to housing.
Moreover, Font discusses how rising rental costs hinder potential homebuyers waiting for more favorable mortgage conditions. He notes that despite anticipated interest rate adjustments by the European Central Bank (ECB), upfront savings remain crucial for securing home loans. Meanwhile, tenants must cope with escalating rents that do not support saving efforts.
Regionally, Santa Cruz de Tenerife and Las Palmas experienced significant growth, with quarterly increases of 9.09% and 8.89% respectively, making them among the highest in Spain. Annually, Las Palmas saw the most substantial rise nationwide at 25%, with Santa Cruz de Tenerife not far behind at 22.59%. In March 2024, Las Palmas was the fifth most expensive province at €12.50 per square metre, while Santa Cruz de Tenerife ranked seventh at €10.80 per square metre.
In the capital cities of the Canary Islands, Santa Cruz de Tenerife recorded a substantial quarterly increase of 6.02%, ranking eleventh nationwide. In contrast, Las Palmas de Gran Canaria saw a slight decrease of 0.37%, the smallest adjustment among Spanish capitals. Year-over-year, Las Palmas de Gran Canaria experienced a significant increase of 20.60%, making it the sixth highest among capitals, while Santa Cruz de Tenerife had a 18.43% increase, ranking seventh. In terms of average monthly rents, Las Palmas de Gran Canaria stood as the eighth most expensive at €13.84 per square metre, and Santa Cruz de Tenerife was tenth at €12 per square metre.
