The demand for housing in Santa Cruz de Tenerife continues to outpace several major Spanish cities, including Seville and Barcelona, according to the latest housing demand rankings published by Idealista. The analysis, based on relative demand in the first quarter of 2025, highlights that Spain’s provincial capitals are under the greatest pressure in terms of available residential stock, with eight of the ten most in-demand cities being provincial capitals—among them, both capitals of the Canary Islands.
Madrid maintains its position at the top of the ranking, consolidating its status as the country’s most sought-after location for homebuyers. Valencia firmly holds on to third place, while Zaragoza has climbed into fourth, overtaking Pamplona, which now stands in fifth.
Despite dropping to seventh place this quarter, Santa Cruz de Tenerife remains ahead of Las Palmas de Gran Canaria (which also appears in the top 10), as well as larger cities like Seville and Barcelona. This highlights a consistent and growing interest in the Canary Islands’ property market.
The report also draws attention to demand hotspots outside the major provincial capitals. Alcalá de Henares, the second most populous city in the Community of Madrid, retains second position, while Torrent, a large town near Valencia, has moved up one spot to sixth—further evidence that buyers are looking for properties in satellite towns near key employment centres.
High Housing Price Tags Across the Board
Among the more than 100 Spanish municipalities analysed by Idealista, the average property price now exceeds €391,500, underlining the sustained pressure in the market.
Several provincial capitals stand out for their high property values:
- Palma de Mallorca appears at position 17, with an average price of €623,000.
- San Sebastián ranks 21st, with homes averaging €666,800.
- Madrid comes in at 24th place, matching Palma with an average of €623,000.
By comparison:
- Barcelona, ranked 35th, shows an average home price exceeding €458,000.
- Malaga properties average more than €406,000.
- Valencia exceeds €307,000.
- Seville, while still in high demand, reports a significantly lower average of just under €273,000.
These figures underline the growing popularity of the Canary Islands as a housing market hotspot, especially as affordability issues persist in mainland metropolitan areas. The ongoing shift in buyer preferences towards locations that balance lifestyle appeal and investment potential continues to shape Spain’s real estate landscape in 2025.
