The average price of new and pre-owned housing in the Canary and Balearic Islands skyrocketed by 11.5% year-on-year in December 2024, according to data from the Tinsa IMIE General statistics. This makes the islands the region with the highest annual price increase within the Tinsa index, highlighting a remarkable surge in residential property values.
Key Trends in Housing Prices
- Monthly Growth: The average housing price rose by 1.4% between November and December, marking consistent growth in the market.
- Above Previous Highs: Prices in the islands are now 7.6% higher than the peaks of 2007-2008, during Spain’s housing boom.
- Post-Crisis Recovery: Property values have increased by an astounding 58.4% since their post-crisis lows, illustrating a robust market rebound.
National Trends in Spain

Across Spain, the price of new and pre-owned housing experienced a more moderate rise, increasing by 1.2% between November and December. Year-on-year, national growth reached 5.5%, reflecting steady, albeit slower, price recovery compared to the islands.
Market Drivers and Expert Analysis
The housing market’s resurgence has been significantly influenced by reduced interest rates, which have improved access to credit and boosted demand.
Cristina Arias, Director of the Tinsa by Accumin Research Department, elaborated:
- Tourist Regions Lead: “The islands and Mediterranean coast, which have a strong tourist presence, have experienced the most significant real year-on-year price growth,” she noted.
- Urban Markets Lag Behind: Capitals, large cities, and metropolitan areas are witnessing slower recovery due to local wage constraints, which are impacting affordability.
- Employment and Credit Access: Arias added that “the resilience of employment and the recovery of household purchasing power have bolstered demand, supported by easier access to credit and lower interest rates.”
Outlook for the Housing Market

The Canary Islands’ housing market reflects strong demand, driven by its appeal to both tourists and residents. With interest rates remaining low and economic recovery underway, property values are expected to continue their upward trajectory into 2025. However, affordability challenges in urban areas could moderate growth in those regions.
The remarkable rise in housing prices underscores the Canary Islands’ position as a hotspot in Spain’s real estate market, offering both opportunities and challenges for buyers and investors alike.