The cost of purchasing property in the Canary Islands has seen a dramatic increase over the past decade, with current prices now double those of ten years ago. According to the latest data from Tinsa, the average price of new and used housing reached €1,678 per square metre in the fourth quarter of 2024, reflecting a 7.1% rise compared to the same period in 2023.
Regional Breakdown
- Province of Las Palmas: Property prices rose by 4.6% year-on-year, reaching €1,663/m².
- Province of Santa Cruz de Tenerife: Prices increased more sharply, by 11.5%, reaching €1,767/m².
In the capital cities:
- Santa Cruz de Tenerife: A year-on-year increase of 9.4%, with prices averaging €1,728/m².
- Las Palmas de Gran Canaria: A more modest increase of 4%, with prices averaging €1,805/m².
National Trends
Across Spain, property prices for new and used housing have also accelerated, with a 4.4% annual increase in the fourth quarter of 2024 and a 2.2% rise compared to the third quarter. Adjusted for inflation, real growth stood at 2.3%, up from 1.0% in the previous quarter. This trend has been supported by improved financing conditions due to the European Central Bank’s policy changes, increased access to credit, and resilient employment rates.
Expert Insights
According to Cristina Arias, Director of Research at Tinsa by Accumin, several factors have driven the increase in housing demand:
- Economic Recovery: Improved household purchasing power and consumer confidence have bolstered demand.
- Immigration and Foreign Buyers: Non-resident purchases and immigration have significantly contributed to property demand.
- Savings: High levels of savings have enabled more individuals to enter the property market.
Despite these positive factors, Arias highlighted potential challenges to the continued upward trend, such as:
- Limited Housing Supply: Areas with concentrated demand face a shortage of available properties, driving prices higher and limiting affordability for many.
- High Transaction Levels: With annual transactions exceeding the historical average of 522,000, the market may experience some cooling.
Housing Market in 2024
The Canary Islands were among the top regions in Spain for property price growth in 2024. The archipelago recorded a 3.5% average annual increase in prices for new and used housing. Other regions with notable year-on-year increases included:
- Balearic Islands: +10.8%
- Cantabria: +8.5%
- Madrid: +7.0%
- Asturias: +6.4%
Historical Perspective
Despite the significant price growth, the average property value in Spain, €1,846/m² in the fourth quarter, remains 14.6% below the peak recorded in 2007 before the housing bubble burst. However, since the market’s lowest point in 2015, housing prices have risen nearly 45%.
Outlook for 2025
Looking ahead, experts predict that the housing market in Spain, including the Canary Islands, will continue to grow at a steady pace. While residential demand and investment are expected to remain robust, growth will likely be more moderate due to the challenges of limited supply and price pressures in high-demand areas.
The Canary Islands, with their unique appeal and growing demand, remain a hotspot for property buyers, though affordability concerns persist as prices continue to climb.
