The Canary Islands closed 2023 with the sale price per square meter of housing at historical highs, specifically 2,421 euros, and with the second highest rental price in its entire historical series with 12.79 euros per square meter.
Currently, the price of second-hand housing in the archipelago is 15% above the price recorded during the real estate bubble of 2007, when it was 2,101 euros, according to data from the Fotocasa real estate portal.
The current average price in the Canary Islands community is 10% above the national average. The rest of Spain is still 27% away from the price at the end of 2007.
“The price of housing is reaching record figures again with the highest acceleration in the last 17 years. We have never detected such a large price increase in such a short period of time," comments María Matos, Director of Studies and Spokesperson for Fotocasa.
These significant increases, she continues, "coincide with the change in monetary policy of raising interest rates by the ECB. Foreign buying demand has resurfaced, local demand has become specialized and is focused in many cases on buying for investment. A situation that complicates access to housing, since the archipelago practically has no stock of public social housing.”
The price of rent in the Canary Islands
Similarly, in the rental market, the increase exceeds 10%, with a year-on-year increase of 13.6%. For more than 17 months, the increases in this market have been very sharp. Since May 2022, there have been double-digit increases.
Since then, the transformation has been very rapid, as the monthly rental price has gone from 9.96 in March 2022 to 12.78 in December 2023.
In the case of rent, the cost of rent is 67% above the price in 2007, when it was 7.64 euros.
