The cost of rental housing in the Canary Islands continues its upward trajectory, reflecting a significant increase in prices. According to data from the Fotocasa Real Estate Index, rental prices in the region surged by 3.6% on a monthly basis and recorded a year-on-year increase of 11.9% in February 2025. This has led to an average rental cost of 14.45 euros per square meter per month.
Provincial Breakdown
By province, the year-on-year price increase varies:
- Las Palmas experienced a 13.3% rise, bringing the rental cost to 14.86 euros per square meter per month.
- Santa Cruz de Tenerife saw an increase of 10.7%, with the average rental price reaching 14.02 euros per square meter per month.
Over the past 12 months, rental prices in the Canary Islands have shown consistent growth, rising from 12.91 euros/m² in February 2024 to 14.45 euros/m² in February 2025. The interannual variation has also increased, moving from 10.8% in February 2024 to 11.9% in February 2025.
Market Dynamics and Rising Demand
“The price of rent continues to increase at double-digit rates, reflecting a very significant upward trend similar to that observed during the 2007 housing boom,” stated María Matos, director of studies and spokesperson for Fotocasa. However, she highlighted a key difference between the current situation and the past market surge: today’s price inflation is primarily driven by an all-time high in rental demand, coupled with a severe shortage in supply. This imbalance is exerting additional upward pressure on rental prices across the region.
Nationwide Rental Trends
Rental prices have increased in almost all autonomous communities across Spain. In February 2025, 17 out of 19 communities recorded year-on-year price growth, with several regions experiencing double-digit increases. The highest annual growth rates were observed in:
- Aragón: 15.3%
- Madrid: 14.6%
- Asturias: 13.8%
- Región de Murcia: 13.6%
- La Rioja: 12.6%
- Catalonia: 12.5%
- Navarra: 12.4%
- Canary Islands: 11.9%
- Comunitat Valenciana: 10.2%
- Andalucía: 10.0%
Other regions, such as Castile-La Mancha, Galicia, and the Basque Country, also recorded notable increases, ranging from 6.6% to 9.6%.
The Most Expensive Regions for Renting in Spain
Among Spain’s autonomous communities, four regions have surpassed the 15-euro per square meter mark, positioning them as the most expensive places to rent in the country:
- Madrid: 20.96 euros/m² per month
- Catalonia: 18.50 euros/m² per month
- Balearic Islands: 18.34 euros/m² per month
- Basque Country: 16.62 euros/m² per month
With rental prices in the Canary Islands climbing steadily, affordability concerns are becoming increasingly relevant, especially as demand outpaces supply. As market conditions continue to evolve, both tenants and property owners must navigate the challenges posed by rising costs and limited availability.
