House prices in the Canary Islands surge 23.4% year-on-year in April

In April, the Canary Islands led the surge in Spain's second-hand housing prices, registering a notable 23.4% year-on-year increase, with Santa Cruz de Tenerife and Las Palmas experiencing significant rises.

The Canary Islands have recorded a significant 23.4% year-on-year rise in the price of pre-owned homes, with prices reaching 2,564 euros per square metre in April, as per the Fotocasa Real Estate Index.

Breaking it down by provinces, Santa Cruz de Tenerife saw an exceptional increase of 31.3%, with prices escalating to 2,911 euros per square metre. Conversely, in Las Palmas, the increase was more modest at 11.7%, setting the price at 2,162 euros per square metre.

Nationally, the average price of second-hand properties in Spain was marked at 2,269 euros per square metre in April. This figure represents a modest monthly increase of 0.4% and an annual rise of 7.4%.

This year-on-year growth of 7.4% indicates a deceleration of 2.7 percentage points compared to last year’s growth rate in April, which was 10%, according to Fotocasa’s data.

House prices in the Canary Islands surge 23.4% year-on-year in April

Maria Matos, Fotocasa’s Director of Studies and spokesperson, commented on the trend, noting that the prices of second-hand homes have been consistently robust, maintaining a steady increase over the past five months. This trend coincides with the sustained high interest rates set by Frankfurt.

The housing market is experiencing a peak in demand while supply remains at a low, causing significant price tensions, the portal notes. Additionally, Fotocasa predicts that a forecasted reduction in interest rates in the latter half of the year will likely boost demand further, potentially sustaining the upward price trend.

April’s statistics reveal that 16 autonomous communities reported an increase in housing prices over the year. Notably, more than 10% increases were observed in five regions: Canarias (23.4%), Madrid (17.7%), Comunidad Valenciana (12.8%), Región de Murcia (10.9%), and Andalucía (10.4%).

Other regions with notable price rises include the Balearic Islands (9.5%), Cantabria (6.4%), the Basque Country (6.2%), Castile-La Mancha (5.9%), Galicia and Asturias (both at 5.3%), La Rioja (3.9%), Aragon and Castile and Leon (both at 3.5%), Navarre (3.1%), and Catalonia (2.3%). Extremadura was the only community to see a decrease, with a modest 0.3% drop in prices.

House prices in the Canary Islands surge 23.4% year-on-year in April

Madrid and the Balearic Islands are currently the most expensive autonomous communities for second-hand housing, with square metre prices at 4,046 euros and 4,015 euros respectively. Following them are the Basque Country at 3,142 euros and Catalonia at 2,790 euros per square metre.

The lowest prices in April were recorded in Extremadura, at 1,212 euros per square metre, and Castilla-La Mancha, at 1,217 euros per square metre.

Furthermore, in 90% of the 50 provinces analysed, there was a year-on-year increase in housing prices in April. Eleven provinces reported increases exceeding 10%, including Santa Cruz de Tenerife, Malaga, Soria, Madrid, Alicante, Granada, Guadalajara, Las Palmas, Valladolid, Murcia, and Lleida.

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