In November, the average rental price in the Canary Islands decreased by 1.29%, settling at 12.97 euros per square meter, according to the latest report by Pisos.com. This marks the third steepest monthly decline across Spain. However, the Canary Islands remain the fourth most expensive autonomous region for renters, following the Balearic Islands (17.71 euros/m²), Madrid (17.46 euros/m²), and Catalonia (13.89 euros/m²).
Despite the monthly drop, the year-on-year rental price in the archipelago has surged by 20.44%, making it the second-highest annual increase among Spain’s regions. Across the country, average rental prices rose by 7.48% year-on-year, reaching 11.93 euros per square meter.
Challenges in the Rental Market
Ferrán Font, director of studies at Pisos.com, highlighted the growing difficulties for tenants:
- The soaring rental prices are hindering younger generations from becoming independent.
- Many renters feel “trapped” in their current apartments, unable to afford better housing.
- The market’s tension and uncertainty create fear among tenants that contract renewals could bring unbearable price hikes, or that they will face a drastically different rental landscape.
Font emphasised the need to address the “unsatisfied demand”, which fuels discontent among citizens and mobilises calls for fair housing. “The high prices are forcing people to compromise on their life goals, live far from their preferred areas, or share housing when they’d rather rent alone,” he stated.
Structural Challenges and Urgent Solutions
To alleviate the rental crisis, Font stressed the importance of increasing housing supply. Current trends, such as signing leases without visiting properties or discrimination against certain renter profiles, are becoming the norm.
He warned that without intervention, these practices will continue to erode trust and accessibility in the rental market.
Regional Rental Trends
The report from Pisos.com highlights notable regional differences:
- Most Expensive Regions:
- Balearic Islands: 17.71 euros/m²
- Madrid: 17.46 euros/m²
- Catalonia: 13.89 euros/m²
- Most Affordable Regions:
- La Rioja: 4.54 euros/m²
- Extremadura: 5.10 euros/m²
- Castilla y León: 5.12 euros/m²
- Largest Monthly Change:
- Increase: Murcia (+2.49%)
- Decrease: Navarra (-2.55%)
- Year-on-Year Extremes:
- Biggest Increase: Asturias (+24%)
- Largest Drop: Navarra (-10.39%)
Looking Ahead
With its steep year-on-year rent increases, the Canary Islands face mounting pressure to address affordability and accessibility in the housing market. Proposed solutions, such as incentives to expand the rental supply, could help stabilise prices and alleviate the financial burden on tenants. However, experts warn that without urgent action, the crisis will continue to exacerbate inequalities and force many to reconsider their living arrangements.
