Canary Islands Property Prices Hit Record Highs Amid Surging Demand
Canary Islands second-hand home prices have reached record highs, surging 10.5% over the past year to an average of 3,269 euros per square meter due to limited supply and high demand.
The Canary Islands real estate market is currently under immense pressure, with the cost of second-hand homes reaching record highs. According to the latest report from Idealista, prices across the archipelago have jumped 10.5% over the past year, bringing the average cost to 3,269 euros per square meter. This represents a 3.8% increase in just the last quarter, affecting both provinces, though the impact varies by location.
In the province of Santa Cruz de Tenerife, prices rose 9.2% over the last year, reaching an average of 3,435 euros per square meter. Tacoronte and Los Realejos saw the sharpest increases, climbing 35.4% and 29.2% respectively. In the capital, prices rose 18.9% to 2,586 euros per square meter. Adeje remains the most expensive area in the province at 4,603 euros per square meter, followed by Guía de Isora at 4,207 euros. Conversely, Icod de los Vinos is the most affordable, at 1,473 euros per square meter. Guía de Isora was the only area in the province to see a slight price drop, falling 1.8%.
The province of Las Palmas saw even steeper growth, with prices rising 11.4% annually to an average of 3,012 euros per square meter. San Bartolomé saw the biggest surge at 36.2%, followed by Santa Lucía de Tirajana (29.2%) and Teror (23.4%). In the capital, Las Palmas de Gran Canaria, prices rose 11.2% to 2,678 euros per square meter. Tías and Yaiza were the only municipalities here to see a decline, falling 2.7% and 1.8% respectively. San Bartolomé de Tirajana is the most expensive area in the province at 4,709 euros per square meter, while Gáldar is the most affordable at 1,311 euros.
These record-breaking prices are raising concerns about housing affordability. A lack of new construction combined with high demand from both residents and investors is driving the market. Analysts warn that the growing gap between local purchasing power and rising property values could threaten the stability of the regional real estate market in the coming years.