Real house prices in the Canary Islands have risen at a significantly faster pace than the Spanish average over the past decade, according to data included in the Bank of Spain’s 2025 Annual Report. The report shows that, between 2014 and 2025, the real price of housing in the archipelago — that is, prices adjusted for inflation — increased by almost 4% per year.
This rate is nearly double the national average, which stood at just over 2% annually during the same period. Although the Canary Islands remain below Madrid and the Balearic Islands, the two regions leading the rise in house prices, the sustained increase reflects the growing pressure on the islands’ housing market.
Rents have also continued to rise, although at a more moderate pace. Over the same ten-year period, rental prices in the Canary Islands increased by around 1.7% per year.
According to the Bank of Spain, this persistent growth in both purchase prices and rental costs has created a considerable financial burden for households trying to access housing, whether through buying or renting.
Housing access requires a major share of household income
The report points out that, in 2024, households in the Canary Islands would have needed to allocate around 6.7 years of their net income to buy their first home. This figure is broadly in line with the Spanish average, but it nevertheless reflects the difficulty many families face when trying to enter the property market.
The rental market presents a similar challenge. Canarian households would have had to spend around 26.4% of their net income on rent, also close to the national average.
Although these figures remain slightly below the thresholds generally considered unsustainable, the Bank of Spain warns that the situation is becoming increasingly demanding in several urban areas of the archipelago.
Arrecife, Santa Cruz de Tenerife and Las Palmas de Gran Canaria among the most affected areas
The report highlights that trends in house prices and household income have not evolved in the same way across all urban areas of the Canary Islands. Some cities have experienced particularly sharp increases, creating greater pressure for residents seeking access to housing.
Among the areas mentioned are Arrecife, Santa Cruz de Tenerife and Las Palmas de Gran Canaria, where the rise in prices has been especially significant. The Bank of Spain specifically identifies Arrecife and Santa Cruz de Tenerife as two of the urban areas leading the increase in house prices, with rises well above the regional average.
This uneven evolution means that the financial effort required to access housing is greater in some parts of the islands than in others, particularly in the rental market.
Demand boosted by non-resident buyers and holiday rentals
The Bank of Spain also points to two important factors behind the rise in housing demand in the Canary Islands: purchases by non-residents and the expansion of tourist accommodation.
In 2025, purchases by non-residents accounted for 20.3% of property sales in the province of Santa Cruz de Tenerife and almost 15% in the province of Las Palmas. These figures are well above the Spanish average, which stood at 7.4%.
The report also notes that this type of transaction has gained considerable weight over time. Between 2007 and 2025, purchases by non-residents increased by 12.5 percentage points in Santa Cruz de Tenerife and by 7.9 percentage points in Las Palmas.
This trend reflects the strong appeal of the Canary Islands for foreign and non-resident buyers, but it also adds pressure to a limited housing supply.
Holiday rentals have a stronger impact in Las Palmas de Gran Canaria
Tourist accommodation also plays an important role in the housing market, although its impact varies depending on the island and the area analysed.
According to 2025 data cited in the report, holiday rentals have a particularly significant presence in the rental market in Las Palmas de Gran Canaria. They account for 12.9% of the rental market in the urban area and 26.9% in the tourist zone.
In Tenerife, however, the pressure from holiday rentals appears to be lower. The report places this type of accommodation at 9.6% of the rental supply in the urban area and 8.2% in the tourist area, even below the Spanish average.
A market under increasing pressure
Overall, the Bank of Spain’s data confirm that the Canary Islands have experienced one of the strongest increases in real house prices in Spain over the past decade. Although the region does not lead the national ranking, the rise has been steep enough to place growing pressure on households, especially in urban areas and municipalities where demand has intensified.
The combination of limited housing supply, stronger demand from non-residents and the presence of tourist accommodation continues to shape the debate over access to housing in the archipelago.
