The housing market in the Canary Islands has entered record territory. Property prices rose by 12% in 2025 in the archipelago — almost double the national average increase of 7.5% — pushing values beyond the levels reached during the height of the 2007 real estate bubble.
According to data from the Consejo General del Notariado, the average price per square metre in Spain climbed to €1,902 in 2025, surpassing the previous historic high of €1,832/m² recorded in 2007. In the Canary Islands, the average price reached €2,177 per square metre, making the region the fifth most expensive in Spain to purchase a home.
Persistent price growth throughout the year
Prices rose steadily across all four quarters of 2025, with year-on-year increases ranging between 6% and 9%. The upward trend has shown no signs of slowing, driven largely by limited housing supply and sustained demand. By property type, flats experienced the sharpest increase, rising 10.1% to €2,186/m² — also exceeding pre-crisis peaks.
Single-family homes rose more moderately, increasing by 3.8% to €1,424/m², returning to levels similar to those seen during the bubble years.
Across Spain, double-digit price growth was also recorded in Murcia (14.4%), Cantabria (14.4%), the Community of Madrid (13.3%) and the Canary Islands (12%). The highest absolute prices remain in the Balearic Islands (€4,061/m²), followed by Madrid (€3,463), the Basque Country (€2,995), Catalonia (€2,323) and the Canary Islands (€2,177).
Sales figures: growth nationally, decline in the islands
Despite record prices, the number of property transactions in Spain rose by 4.4% in 2025 to 752,661 sales — the second-highest figure in the historical series after the 853,568 recorded in 2007.
However, the Canary Islands moved against the national trend, registering a 4.7% decline in transactions. Only Madrid and the Balearic Islands also saw decreases.
Sales performance varied throughout the year: while the first quarter was particularly strong, activity slowed in the middle of the year and closed with negative rates in the final quarter.
Flats accounted for 567,564 transactions nationwide (+2.3%), still below 2007 levels. In contrast, sales of single-family homes rose by 11.5% to 185,097 units, surpassing the historical high recorded eighteen years ago.
Mortgage lending accelerates
The mortgage market also expanded significantly. New mortgage loans for home purchases increased by 13.7% in 2025 to 389,090 operations.
The average mortgage amount rose by 11.8%, reaching €173,989.
Mortgage growth was recorded in all autonomous communities, with particularly strong increases in Extremadura (21.2%), Asturias (18.7%), Castilla-La Mancha (18.7%), Aragon (18.7%), Catalonia (18.5%) and Galicia (17.6%).
Growing affordability concerns
Notaries warn that the current market dynamics — characterised by insufficient housing supply to meet demand — are pushing prices higher and making access to home ownership increasingly difficult. Young people and lower-income households are among the most affected.
The average home size in Spain edged up slightly in 2025, increasing by 0.5% to 112.7 square metres, but affordability pressures remain a growing concern.
Overall, the Canary Islands now stand at the centre of one of the strongest housing price surges in Spain, having already surpassed the highs of the last property boom and consolidating their position among the country’s most expensive markets.
