The Canary Islands have recorded the highest increase in house prices across Spain, with a year-on-year rise of 16.4% in the third quarter of 2024, bringing the average price to 2,719 euros per square metre. This growth places the Canary Islands at the top of the national ranking, surpassing the rest of the country.
Price Surge in Canary Islands Provinces
Both provinces in the Canary Islands experienced significant price increases. In Las Palmas, house prices rose by 14.7% year-on-year, reaching 2,542 euros per square metre. In Santa Cruz de Tenerife, the increase was even greater at 17.5%, with prices hitting 2,865 euros per square metre.
These figures were reported by the real estate portal Idealista, which also noted that the overall price of housing in Spain increased by 8.7% year-on-year during the third quarter of 2024. This rise brought the national average to 2,182 euros per square metre, marking a new all-time high.
National Housing Market Trends
Nationally, house prices rose by 2% compared to the previous quarter and by 0.3% on a monthly basis. Francisco Iñareta, a spokesperson for Idealista, attributed the price increases to a lack of housing supply and the challenges in constructing new properties.
In all of Spain’s autonomous communities, house prices have increased over the past twelve months, with the Canary Islands leading the way at 16.4%. Other regions with price increases above the national average include the Community of Madrid (14.1%), the Balearic Islands (13.1%), and the Valencian Community and the Region of Murcia (12.7% each).
Regions experiencing growth below the national average include Cantabria (8.5%), Andalusia (8.3%), Asturias (5.6%), the Basque Country (5.2%), and Navarre (4.7%). At the lower end, Extremadura recorded the smallest rise, with a 2.8% year-on-year increase, followed by Castilla-La Mancha (3.4%) and Castilla y León (3.7%).
Most Expensive and Cheapest Regions
According to Idealista, the Balearic Islands remain the most expensive region for property, with an average price of 4,561 euros per square metre. Madrid follows with 3,569 euros per square metre, also at a record high. Other expensive regions include the Basque Country (2,992 euros per square metre) and the Canary Islands (2,719 euros per square metre). In contrast, the cheapest regions are Castilla-La Mancha (936 euros/m2), Extremadura (973 euros/m2), and Castilla y León (1,195 euros/m2).
Price Trends in Provincial Capitals
All provincial capitals in Spain saw an increase in housing prices, except for Huesca, where prices remained stable. Malaga leads the list with a 17.9% year-on-year increase, followed by Madrid (17.8%), Valencia (17.6%), and Santander (16.7%). Other notable increases were in Alicante (15.9%), Granada (15%), and Soria (13.5%).
When it comes to the most expensive cities, San Sebastián tops the ranking with 5,570 euros per square metre, followed by Madrid (4,756 euros/m2), Barcelona (4,561 euros/m2), Palma de Mallorca (4,308 euros/m2), and Bilbao (3,384 euros/m2). On the other end of the spectrum, Zamora is one of the least expensive cities, with an average price of 1,175 euros per square metre.
Provincial Trends
In terms of provinces, only four experienced a reduction in house prices: Ourense (-2.2%), Córdoba (-1.6%), Ciudad Real (-0.9%), and Badajoz (-0.2%). However, most provinces saw price increases, with Santa Cruz de Tenerife leading with a 17.5% rise, followed by Las Palmas (14.7%), Madrid (14.1%), and the Balearic Islands (13.1%).
Among the most expensive provinces, the Balearic Islands stand out with an average price of 4,561 euros per square metre, followed by Guipúzcoa (3,652 euros/m2) and Madrid (3,569 euros/m2). Other provinces with high prices include Malaga (3,397 euros/m2), Santa Cruz de Tenerife (2,865 euros/m2), Vizcaya (2,859 euros/m2), and Barcelona (2,741 euros/m2). On the opposite end, Ciudad Real is the least expensive province, with 745 euros per square metre, followed by Jaén (838 euros/m2) and Cuenca (845 euros/m2).
The Canary Islands’ leading position in house price growth reflects strong demand and limited supply, making it one of the hottest property markets in Spain at the moment.
