Over the last five years, rental prices in the Canary Islands have risen significantly, outpacing the national average. According to a report released on Thursday by the real estate portal pisos.com, the average rent in the Canary Islands has increased by 21.02%, bringing it to €1,200 per month. In comparison, the average rent across Spain has grown from €898.34 in January 2020 to €1,125 in January 2025, representing a 20.15% rise.
Regional Trends in Rental Growth
The Canary Islands are among seven regions where rental price increases have exceeded the national average over the past five years. These regions include:
- Balearic Islands: +37.14%
- Catalonia: +31%
- Valencian Community: +27%
- Murcia: +23.52%
- Madrid: +22.91%
- Andalusia: +21.80%
- Canary Islands: +21.02%
The report attributes this steep rise in rental costs to population growth in large cities, limited supply, and increasing demand, all of which have combined to drive up prices significantly in recent years.
Regions with Declining Rental Prices
Not all areas have seen such growth. Five regions have actually experienced a decline in average rental prices:
- Basque Country: -1.62%
- Asturias: -1.66%
- Extremadura: -6%
- La Rioja: -23.63%
- Navarre: -40.07%
These regions now stand out as some of the most affordable rental markets in Spain.
Provinces with the Highest and Lowest Rents
As of January 2025, the provinces with the highest average rents include:
- Balearic Islands: €1,672.45
- Madrid: €1,656.90
- Barcelona: €1,647.90
- Las Palmas (Canary Islands): €1,206.90
- Málaga: €1,201.50
In contrast, the provinces with the lowest average rents are:
- Badajoz: €351
- Ciudad Real: €346.50
- Soria: €324
- Ávila: €313.20
- Ourense: €293.40
Notable Case: Ourense
The rental market in Ourense highlights a stark contrast: for the same price as renting a single property in high-cost areas like the Balearic Islands, Barcelona, or Madrid, one could rent up to five properties in Ourense. This disparity underscores the growing challenges in Spain’s most competitive rental markets.
Challenges and Structural Issues
Despite these regional differences, the core issue remains consistent: a structural shortage of available rental housing. According to Ferran Font, Director of Estudios de pisos.com, the steady rise in rents is not solely driven by inflation or higher demand. The lack of supply is the primary factor. Without effective measures to boost housing availability and ease access to rentals, the situation is likely to deteriorate further.
Outlook
The rising rental costs in the Canary Islands and across Spain reflect deeper economic and structural challenges. While demand continues to grow, the limited supply of rental properties exacerbates affordability issues. Policymakers and industry stakeholders will need to address these challenges promptly to prevent further market imbalances and ensure that renting remains a viable option for residents and newcomers alike.
