The President of the Canary Islands, Fernando Clavijo, has expressed confidence that the regional government will be able to introduce legal limits on the purchase of residential property by foreign buyers in the archipelago. However, he openly acknowledged that achieving this objective will involve what he described as a “tough battle,” both legally and politically.
Speaking during the opening session of the Debate on the State of the Nation, Clavijo revealed that the Regional Ministries of Housing and Finance have commissioned a law firm to explore regulatory mechanisms that would make it possible to restrict certain types of property acquisitions. The aim, he explained, is to address mounting housing pressures in a territory experiencing sustained population growth.
“We cannot continue to grow at a rate of 20,000 new residents per year on these islands,” Clavijo stated, underlining the structural strain this demographic increase places on the housing market and public services.
A Structural Housing Deficit
The president stressed that the housing crisis cannot be solved through simplistic or short-term promises. He rejected what he called “miracle cures” and warned against unrealistic political pledges to resolve the problem within a single legislative term. “Anyone who says they will solve the housing problem in four years is not telling the truth,” he said.
According to Clavijo, the Canary Islands would need to build approximately 15,000 homes annually in order to meet current demand. In reality, however, projected construction figures are expected to reach only between 6,000 and 7,000 units per year — less than half of what is required to stabilise the market.
This gap between supply and demand has contributed to rising prices and growing public concern, particularly in areas where foreign purchases significantly exceed the national average.
Regulatory Shift and Construction Recovery
Despite the shortfall, Clavijo argued that a shift in policy direction is already underway. He pointed to new regulations introduced by his government that facilitate housing development under updated planning frameworks. These measures, he said, allow for more homes to be built today than in 2008, when the mortgage crisis caused a dramatic collapse in the construction sector.
“I insist, the trend has changed,” Clavijo maintained. He emphasised that the construction sector is regaining momentum and can contribute to economic growth and job creation — provided it does so without expanding urban land consumption unnecessarily. Rehabilitation and redevelopment of existing urban areas, he suggested, will play a key role in balancing development with sustainability.
A Politically and Legally Complex Path
Limiting foreign home purchases would represent a significant regulatory shift and may face scrutiny within Spain’s constitutional framework and European Union law, where freedom of capital movement is a foundational principle. Clavijo’s reference to a “tough battle” reflects the complexity of implementing such measures within these legal boundaries.
Nevertheless, the regional government appears determined to explore every possible avenue to moderate housing pressures and respond to public concern over affordability and demographic growth.
Whether the proposed limits can be implemented — and whether they will meaningfully alleviate housing shortages — remains to be seen. For now, Clavijo’s message combines caution, determination and an acknowledgment of the structural challenges facing the Canary Islands’ housing market.
