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You want to know if now is the right moment to buy a home in the Canary Islands, and we have gathered and analyzed the freshest data to help you decide.
In this article, we break down the current housing prices in the Canary Islands in January 2026 and explain what is really happening in this market.
We constantly update this blog post as new data becomes available, so you always have the latest picture.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Canary Islands.
So, is now a good time?
Rather yes, but you need to be strategic because prices are high yet the market fundamentals remain solid in the Canary Islands as of the first half of 2026.
The strongest signal is that rents in the Canary Islands hit a record €15.30 per square meter in December 2025, showing that demand for housing far exceeds what is available.
Another strong signal is that property prices have climbed around 11% year over year in 2025, backed by tight inventory and a structural shortage of homes across the islands.
Other signals include a 2% to 4% vacancy rate in popular areas, ongoing airport investment plans boosting connectivity, and Euribor stabilizing around 2.27%, which keeps mortgage costs manageable.
The best strategy is to focus on apartments or townhouses in liquid neighborhoods like Puerto-Canteras in Las Palmas or Costa Adeje in Tenerife, plan for long-term renting rather than relying on short-term tourist lets, and negotiate hard on asking prices since the gap between portal listings and actual transactions can be significant.
This is not financial or investment advice, we do not know your personal situation, and you should always do your own research before making any property decision.
Is it smart to buy now in Canary Islands, or should I wait as of 2026?
Do real estate prices look too high in Canary Islands as of 2026?
As of early 2026, property prices in the Canary Islands sit about 15% to 20% above what local incomes alone would support, but the gap is partly justified by strong external demand from remote workers, retirees, and second-home buyers across Europe.
One clear on-the-ground signal is that asking prices on Idealista reached around €3,123 per square meter in late 2025, while official appraisal values from ISTAC were closer to €1,966 per square meter, meaning there is room for negotiation if you avoid overpaying at portal prices.
Another useful indicator is that properties in tourist-heavy zones like Costa Adeje and Los Cristianos can sit on the market longer if priced aggressively, while well-priced homes in residential neighborhoods like Puerto-Canteras or Ciudad Jardín move quickly, suggesting the market rewards realistic pricing.
You can also read our latest update regarding the housing prices in Canary Islands.
Does a property price drop look likely in Canary Islands as of 2026?
As of early 2026, the likelihood of a meaningful property price drop in the Canary Islands over the next 12 months is low, because structural demand from tourism, lifestyle migration, and limited new construction continues to underpin values.
A plausible downside scenario would be a 0% to 5% price correction in overheated tourist zones, while more residential areas could still see 3% to 7% gains, giving you a realistic range of minus 5% to plus 8% depending on location and property type.
The single most important macro factor that could increase the odds of a price drop in the Canary Islands is a sharp rise in Euribor, because most local buyers rely on variable-rate mortgages and higher rates would squeeze affordability fast.
However, Euribor has been falling through 2025 and sat at around 2.27% in December, so a sudden spike is unlikely in the next few months unless the European Central Bank reverses course unexpectedly.
Finally, please note that we cover the price trends for next year in our pack about the property market in Canary Islands.
Could property prices jump again in Canary Islands as of 2026?
As of early 2026, the likelihood of a renewed price surge in the Canary Islands is medium, because the same supply constraints and demand drivers that pushed prices up 11% in 2025 are still in place.
A plausible upside scenario over the next 12 months would be an additional 5% to 10% price increase, especially in prime coastal and well-connected urban neighborhoods where inventory remains extremely tight.
The single biggest demand-side trigger that could drive prices to jump again in the Canary Islands is continued migration from mainland Spain and northern Europe, as remote workers and retirees keep seeking the islands' year-round climate and relatively affordable cost of living compared to other sunny destinations.
Please also note that we regularly publish and update real estate price forecasts for Canary Islands here.
Are we in a buyer or a seller market in Canary Islands as of 2026?
As of early 2026, the Canary Islands remain a seller-leaning market overall, because rents are at historic highs and inventory of homes for sale has dropped by roughly 13% to 20% compared to the previous year in key areas like Las Palmas and Santa Cruz.
While there is no official months-of-supply statistic published for the islands, the combination of record-high prices, fast-moving rentals, and declining listings suggests effective supply is well below the 5 to 6 months that would indicate a balanced market, giving sellers more bargaining power in most transactions.
However, the share of listings with price reductions varies significantly by neighborhood: in overpriced tourist-heavy zones, properties can sit longer and sellers may cut prices by 5% to 10%, while in residential areas like Vegueta-Triana or Centro-Ifara, price cuts are rare because demand absorbs listings quickly.
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Canary Islands as of 2026?
Are homes overpriced versus rents or versus incomes in Canary Islands as of 2026?
As of early 2026, homes in the Canary Islands look fairly priced against rents but stretched against local incomes, because gross rental yields around 5% to 6.5% are reasonable while price-to-income multiples push toward 7 to 9 times median household earnings.
The price-to-rent ratio in the Canary Islands works out to roughly 16 to 18 years of rent to equal the purchase price, which is close to a balanced benchmark of 15 to 20 years and suggests that buying can make financial sense if you plan to hold long-term or rent out the property.
The price-to-income multiple, however, is uncomfortable: with a typical home around €260,000 and median household incomes in the mid-€30,000s, affordability is tighter than in many parts of mainland Spain, which explains why external buyers and investors play such a large role in this market.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Canary Islands.
Are home prices above the long-term average in Canary Islands as of 2026?
As of early 2026, property prices in the Canary Islands are at all-time highs in both nominal and inflation-adjusted terms, sitting roughly 50% to 55% above 2016 levels in nominal euros and about 20% to 25% higher in real terms.
The recent 12-month price change of around 11% to 12% is well above the long-run pace of roughly 3% to 5% annual growth that the islands saw before 2020, indicating the market is in an accelerated phase driven by supply shortages and post-pandemic demand shifts.
On an inflation-adjusted basis, prices in the Canary Islands have now surpassed their prior cycle peak from before the 2008 crisis, meaning today's buyers are paying more in real purchasing power than at any previous point in modern history.
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What local changes could move prices in Canary Islands as of 2026?
Are big infrastructure projects coming to Canary Islands as of 2026?
As of early 2026, the biggest planned infrastructure project in the Canary Islands is the Aena airport investment plan covering all eight islands, which could boost property values by 3% to 7% in areas with improved connectivity like southern Tenerife and Gran Canaria's tourist corridors over the next five years.
The timeline for this airport investment includes ongoing capacity upgrades through 2025 and 2026, with major safety and sustainability improvements funded by the central government and expected to complete in phases through 2028, while early-stage rail projects for Tenerife and Gran Canaria remain further out with no firm delivery date yet.
For the latest updates on the local projects, you can read our property market analysis about Canary Islands here.
Are zoning or building rules changing in Canary Islands as of 2026?
The most important rule change being discussed in the Canary Islands is the new law regulating tourist-use homes, which was approved by the regional parliament in November 2025 and replaces the older decree framework with stricter licensing and compliance requirements.
As of early 2026, the net effect of this rule change on prices is mixed: it could ease pressure on long-term residential rentals by pushing some tourist units back into the regular market, but it may also reduce resale liquidity for properties that were primarily valued for their short-term rental potential.
The areas most affected by these rule changes in the Canary Islands are the southern tourist corridors of Tenerife like Costa Adeje and Los Cristianos, as well as resort zones in Gran Canaria like Maspalomas and Playa del Inglés, where a large share of apartments have operated as vacation rentals.
Are foreign-buyer or mortgage rules changing in Canary Islands as of 2026?
As of early 2026, the main foreign-buyer rule change is the end of Spain's Golden Visa program in April 2025, which removed the residency-for-investment pathway and could slightly cool demand from non-EU investors, though lifestyle and second-home buyers from Europe continue to drive the market.
No new foreign-buyer restrictions like additional taxes, bans, or quotas are currently being discussed specifically for the Canary Islands, so international buyers still face the same process as before, just without the residency incentive.
On the mortgage side, the key development is stable to falling interest rates, with Euribor at around 2.27% in December 2025, which keeps variable-rate mortgages affordable, and no new LTV limits or stress tests have been announced that would tighten credit access for buyers in the Canary Islands.
You can also read our latest update about mortgage and interest rates in Spain.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Will it be easy to find tenants in Canary Islands as of 2026?
Is the renter pool growing faster than new supply in Canary Islands as of 2026?
As of early 2026, renter demand in the Canary Islands is growing faster than new rental supply, which is why rents have hit record highs at €15.30 per square meter and vacancy in popular areas sits between just 2% and 4%.
The clearest signal of renter demand growth is the continued inflow of remote workers, digital nomads, and mainland Spanish families relocating to the islands for lifestyle reasons, combined with strong tourism employment that keeps the local workforce expanding.
On the supply side, new rental completions are running at only about 2,900 units per year across the archipelago, while estimates suggest the islands need roughly 50,000 additional homes by 2030 to meet demand, meaning the gap between new supply and household formation remains wide.
Are days-on-market for rentals falling in Canary Islands as of 2026?
As of early 2026, we do not have an official days-on-market statistic for rentals in the Canary Islands, but the combination of record-high rents and very low vacancy strongly suggests that well-priced properties are renting within two to four weeks in the best areas.
The difference between "best areas" and weaker areas is stark: rentals in neighborhoods like Puerto-Canteras, Guanarteme, or Costa Adeje likely rent in under three weeks, while inland locations or less connected towns can take six to eight weeks or longer to fill.
One common reason days-on-market falls in the Canary Islands is seasonal demand from northern European visitors and remote workers arriving in autumn and winter, which creates rental spikes from October through March in coastal and urban zones.
Are vacancies dropping in the best areas of Canary Islands as of 2026?
As of early 2026, vacancy in the best-performing rental areas of the Canary Islands like Puerto-Canteras, Las Canteras beach zone, Costa Adeje, and Los Cristianos is dropping and now sits under 2% to 3%, compared to a broader market average closer to 4% to 5%.
These top neighborhoods show tighter vacancy than the overall Canary Islands market because they combine beach access, walkability, strong transport links, and proximity to employment in tourism and services, making them magnets for both local renters and relocating professionals.
One practical sign that the "best areas" are tightening first in the Canary Islands is that landlords in these zones are increasingly able to select tenants based on financial profile rather than scrambling to fill units, which means renters with strong income documentation get priority.
By the way, we've written a blog article detailing what are the current rent levels in Canary Islands.
Buying real estate in Canary Islands can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Canary Islands as of 2026?
Is for-sale inventory shrinking in Canary Islands as of 2026?
As of early 2026, for-sale inventory in the Canary Islands has dropped by roughly 13% to 20% compared to the same time last year, with the sharpest declines in the capital cities of Las Palmas de Gran Canaria and Santa Cruz de Tenerife.
We do not have an official months-of-supply figure for the Canary Islands, but the combination of rising prices, record rents, and declining listings suggests effective supply is well below balanced-market levels, likely in the range of 3 to 4 months rather than the 5 to 6 months that would indicate equilibrium.
One likely reason inventory is shrinking in the Canary Islands is that existing owners with low fixed-rate mortgages or outright ownership have little incentive to sell when rents are rising and capital gains continue to accumulate, creating a "hold and wait" mentality.
Are homes selling faster in Canary Islands as of 2026?
As of early 2026, we cannot confirm an exact median days-on-market figure for the Canary Islands, but market signals like strong price growth and tight inventory suggest that well-priced homes in liquid neighborhoods are selling faster than they did a year ago.
The year-over-year change in selling speed is likely an improvement of one to three weeks in prime areas like Puerto-Canteras, Vegueta-Triana, or Costa Adeje, while less desirable locations or overpriced listings may still take two to four months to find a buyer.
Are new listings slowing down in Canary Islands as of 2026?
As of early 2026, we are not confident in providing a precise year-over-year change in new for-sale listings for the Canary Islands, but the overall inventory decline and steady price growth suggest that new listings are not keeping pace with buyer demand.
Seasonally, new listings in the Canary Islands tend to pick up in spring and autumn when sellers prepare for high season, but the current level appears unusually low compared to pre-2020 patterns because owners are hesitant to sell in a rising market.
The most plausible reason new listings are slowing in the Canary Islands is owner caution: with prices at all-time highs and rents generating strong returns, many sellers prefer to wait for even better conditions or simply continue collecting rental income.
Is new construction failing to keep up in Canary Islands as of 2026?
As of early 2026, new housing construction in the Canary Islands is failing to keep up with demand, with only about 2,900 units completed annually versus an estimated need of 50,000 additional homes by 2030 to address the accumulated shortage.
Building permits in the Canary Islands have been rising over the past two years, but the pace remains far below what would be needed to close the gap, and completions lag permits by 18 to 24 months, so relief is not coming quickly.
The single biggest bottleneck limiting new construction in the Canary Islands is land availability combined with strict environmental protections, because the islands' geography and conservation rules make large-scale development difficult and expensive compared to mainland Spain.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Canary Islands as of 2026?
Is resale liquidity strong enough in Canary Islands as of 2026?
As of early 2026, resale liquidity in the Canary Islands is strong in the right locations, with well-priced homes in prime coastal and urban neighborhoods typically selling within four to eight weeks, while properties in weaker areas or with unrealistic pricing can take three to six months.
We estimate that median days-on-market for resale homes in liquid neighborhoods like Puerto-Canteras, Costa Adeje, or Vegueta-Triana is around 30 to 50 days, which is close to a "healthy liquidity" benchmark of under 60 days for a well-functioning market.
One property characteristic that most improves resale liquidity in the Canary Islands is location near the beach or within walking distance of urban amenities, because both local buyers and international purchasers prioritize convenience and lifestyle access over extra square meters in a remote area.
Is selling time getting longer in Canary Islands as of 2026?
As of early 2026, selling time in the Canary Islands has not lengthened compared to last year in the best neighborhoods, though overpriced properties in tourist-heavy zones may sit longer as buyers become more selective about value.
The current median days-on-market across the islands likely ranges from 30 to 90 days depending on location and pricing, with the low end in prime urban and coastal areas and the high end in inland or less connected municipalities.
One clear reason selling time can lengthen in the Canary Islands is affordability pressure: when asking prices climb faster than local incomes and mortgage rates are not falling fast enough to compensate, some buyers step back and wait, leaving overpriced listings stranded.
Is it realistic to exit with profit in Canary Islands as of 2026?
As of early 2026, the likelihood of selling with a profit in the Canary Islands is medium to high if you hold for at least four to five years, because long-term demand drivers remain intact and the market has shown consistent appreciation over the past decade.
The minimum holding period that most often makes exiting with profit realistic in the Canary Islands is about four to five years, which gives you time to absorb round-trip transaction costs and ride out any short-term price volatility.
The total round-trip cost drag in the Canary Islands, including buying taxes like IGIC at 7% or ITP at 6.5%, notary and registry fees, legal costs, and selling expenses, adds up to roughly 10% to 12% of the property value, or about €26,000 to €31,000 on a €260,000 home (around $28,000 to $33,000 USD).
One clear factor that most increases profit odds in the Canary Islands is buying below portal asking prices through negotiation or targeting less "Instagram-famous" neighborhoods with strong rental fundamentals, because this gives you a margin of safety against any future price softness.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Canary Islands, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| ISTAC (Canary Islands Statistics Institute) | Official regional statistics body of the Canary Islands government. | We used ISTAC data to anchor official year-over-year price growth and appraised housing values. We cross-checked their figures against private indexes to validate market trends. |
| Idealista | Spain's largest property portal with transparent monthly methodology. | We tracked current asking-price levels and rent growth by island and neighborhood. We treated portal prices as "market temperature" and triangulated with appraisal data for transaction estimates. |
| Fotocasa | Major Spanish property portal with consistent price reporting. | We used Fotocasa data to confirm price trends and validate Idealista figures. We referenced their Real Estate Index for year-over-year comparisons. |
| Banco de España | Spain's national central bank and official Euribor publisher. | We sourced the December 2025 Euribor reading to assess mortgage rate conditions. We used this to evaluate financing pressure on buyers in the Canary Islands. |
| INE (National Statistics Institute) | Spain's official national statistics body. | We anchored mortgage statistics and income data from INE surveys. We used their house price index for long-term trend context. |
| BBVA Research | Top-tier research house with transparent methods and data sourcing. | We contextualized the Canary Islands economy's growth drivers and cyclical risks. We used their regional outlook as a sanity check for demand scenarios. |
| Canary Islands Government News | Official regional government communications on enacted policy. | We tracked the November 2025 tourist-use housing law and other regulatory changes. We assessed how supply allocation between tourist and residential uses may shift. |
| BOE (Official State Gazette) | Spain's official legal publication for all enacted laws. | We referenced the Spain Housing Law to interpret rent control mechanisms. We framed regulatory risk for landlords in the Canary Islands. |
| MIVAU (Ministry of Housing) | Official Spanish ministry for housing policy. | We confirmed the end of Golden Visa in April 2025 via their announcement. We isolated which demand drivers remain active after this policy change. |
| Ministry of Territorial Policy | Official government source for infrastructure and regional investment. | We sourced Aena airport investment plans for the Canary Islands. We evaluated infrastructure tailwinds supporting long-run housing demand. |
| EFE (Spanish News Agency) | Major national newswire with reliable reporting on government plans. | We referenced EFE for rail project commitments in Tenerife and Gran Canaria. We used this to assess future connectivity improvements. |
| Canarian Weekly | Local English-language news source covering Canary Islands markets. | We used their reporting for recent price and rent updates. We cross-referenced with portal data to confirm local market conditions. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Spain. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.