Soaring Housing Prices in the Canary Islands
Buying a home in the Canary Islands has become an increasingly difficult task, as property prices continue to climb relentlessly. Across most of the archipelago, prices have risen by over 10% in just one year, with some areas seeing staggering increases of up to 45%. According to the latest data from Idealista.com, the average price per square meter in the Canary Islands now stands at €3,068, though significant differences exist between the two provinces.
Price Disparities Between Provinces
In June 2025, the cost per square meter in Las Palmas province averaged €2,797, while Santa Cruz de Tenerife reached €3,260—a 15% and 20% annual increase, respectively. The relentless rise in housing costs no longer surprises anyone, as news about construction shortages, soaring material prices, and limited financing options has become commonplace. Urban planning policies in many cities fail to meet population demands, worsening the crisis.
Tourist Hotspots Drive Inflation
Idealista’s June 2025 data reveals that the housing crisis affects most municipalities, particularly those with high tourism activity or better connectivity. The surge is fueled by vacation rental demand, a lack of public housing, and a strained market. In Las Palmas province, Vega de San Mateo leads with a 35% price hike, followed by Haría (25%) and Santa María de Guía de Gran Canaria (19.6%). Puerto del Rosario and San Bartolomé de Tirajana also saw increases of 18.7% and 18.3%, respectively—driven by tourism demand in southern Gran Canaria and Lanzarote.
Tenerife’s Southern Boom
In Santa Cruz de Tenerife province, Guía de Isora recorded the highest increase at 45.4%, followed by Arico (34.1%), Granadilla de Abona (29.1%), Santa Cruz de La Palma (26.6%), and El Sauzal (26.6%). Meanwhile, Santa Úrsula saw a rare 13.1% drop. The southern part of Tenerife continues to attract both foreign and domestic investment, pushing prices higher in tourist-heavy areas like Adeje and Arona.
Most Expensive Municipalities
San Bartolomé de Tirajana is now the priciest area in Las Palmas province at €4,612/m², followed by Mogán (€4,207), Tías (€3,949), Yaiza (€3,885), and La Oliva (€3,275). These figures highlight their status as real estate investment hubs tied to tourism and second homes. In Tenerife, Guía de Isora tops the list at €4,533/m², with Adeje (€4,433), Arona (€3,642), Santiago del Teide (€3,565), and Puerto de la Cruz (€3,210) close behind. Luxury developments and tourism concentration in the south have made housing increasingly unaffordable for locals.
A Call for Solutions
The data paints a clear picture: housing prices in the Canary Islands are rising sharply, especially in high-demand tourist areas with limited land availability. Municipalities like Adeje, San Bartolomé de Tirajana, and Guía de Isora are at the epicenter of this inflation, making homeownership nearly impossible for many residents. Experts and advocacy groups are urging immediate action to curb speculation, promote affordable housing, and ensure dignified living conditions across the archipelago.
