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If you're curious about where property prices in Canary Islands are heading, you've come to the right place.
We constantly update this blog post with fresh data about current housing prices, neighborhood trends, and realistic forecasts for the Canary Islands real estate market in 2026 and beyond.
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.
Insights
- Property prices in Canary Islands rose about 11% year-on-year by late 2025, outpacing the Spanish national average by roughly 3 percentage points.
- Foreign buyers account for a structurally high share of transactions in Canary Islands, which amplifies price swings in coastal and resort areas compared to mainland Spain.
- The gap between asking prices (around 3,150 euros per square meter) and transaction prices (around 2,500 euros per square meter) in Canary Islands suggests room for negotiation, especially in slower-moving segments.
- Neighborhoods like Argana-Maneje in Lanzarote saw asking prices jump over 40% in 2025, driven by catch-up demand from buyers priced out of premium beachfront zones.
- Apartments and condos in Canary Islands are appreciating faster than villas in most areas because they offer easier entry points for locals, mainland Spaniards, and foreign buyers alike.
- The Tenerife South rail project, if completed as planned, could reprice neighborhoods along the corridor by improving commute times between San Isidro and Costa Adeje.
- Euribor mortgage rates hovering around 2% in early 2026 mean monthly payments remain manageable, but a 1% rate increase could reduce buying power by roughly 10% in Canary Islands.
- New tourist-use housing regulations in Canary Islands (Law 6/2025) create uncertainty for short-term rental investors, potentially pushing demand toward long-term rental properties instead.
- Over the next 5 years, baseline forecasts suggest Canary Islands property prices could grow 22% to 34% cumulatively, or roughly 4% to 6% per year.
What are the current property price trends in Canary Islands as of 2026?
What is the average house price in Canary Islands as of 2026?
As of early 2026, the estimated average property price in Canary Islands sits around 240,000 to 285,000 euros for a typical 80 to 90 square meter apartment, which translates to roughly 250,000 to 300,000 USD or 230,000 to 275,000 GBP depending on exchange rates.
When you look at price per square meter, Canary Islands properties average between 2,250 and 2,750 euros per square meter for completed sales, while asking prices run higher at around 3,150 euros per square meter, equivalent to roughly 3,300 USD or 2,550 GBP per square meter.
To give you a realistic picture, about 80% of property purchases in Canary Islands fall within a range of 150,000 to 600,000 euros (roughly 160,000 to 630,000 USD), covering everything from modest apartments in local neighborhoods to spacious townhouses in family-friendly areas.
How much have property prices increased in Canary Islands over the past 12 months?
Property prices in Canary Islands increased by approximately 11% over the past 12 months, making it one of the strongest performing regions in Spain for residential real estate.
That said, the range varies depending on property type: new-build homes in Canary Islands rose around 12.4% while resale properties climbed about 12.2%, and asking prices tracked by listing portals showed gains closer to 10.7%.
The single biggest factor driving this price surge in Canary Islands has been the persistent mismatch between strong buyer demand (from locals, mainland Spaniards, and foreign purchasers) and limited housing supply due to island land constraints and slower construction delivery.
Which neighborhoods have the fastest rising property prices in Canary Islands as of 2026?
As of early 2026, the neighborhoods with the fastest rising property prices in Canary Islands include Argana-Maneje in Arrecife (Lanzarote), La Salud-La Salle in Santa Cruz de Tenerife, and Carretera del Centro-Cono Sur in Las Palmas de Gran Canaria.
In terms of numbers, Argana-Maneje saw asking prices jump around 42% year-on-year, La Salud-La Salle climbed about 28%, and Carretera del Centro-Cono Sur rose approximately 22% over the same period.
The main reason these Canary Islands neighborhoods are outperforming is that they started at lower price points, so buyers priced out of premium beachfront areas are now flooding into these more affordable zones, creating rapid catch-up growth.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Canary Islands.
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.
Which property types are increasing faster in value in Canary Islands as of 2026?
As of early 2026, apartments and condos are appreciating fastest in Canary Islands, followed by townhouses, with detached villas showing strong gains mainly in prime resort corridors but with more volatile price movements.
The top-performing property type, apartments in walkable coastal and urban zones, is seeing annual appreciation of roughly 11% to 13% in Canary Islands, outpacing the broader market average.
Apartments are outperforming in Canary Islands because they represent the most accessible entry point for local buyers, mainland Spanish purchasers, and foreign investors alike, plus they offer flexibility for rental income in a tourism-driven economy.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Canary Islands?
- How much should you pay for a house in Canary Islands?
- How much should you pay for an apartment in Canary Islands?
- How much should you pay for lands in Canary Islands?
What is driving property prices up or down in Canary Islands as of 2026?
As of early 2026, the top three factors driving property prices in Canary Islands are the high share of foreign and lifestyle buyers, persistent housing supply constraints due to limited island land, and strong tourism-linked investment demand.
The single factor exerting the strongest upward pressure on Canary Islands property prices is the structural supply shortage, because island geography and planning restrictions mean new housing simply cannot keep pace with buyer demand.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Canary Islands here.
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What is the property price forecast for Canary Islands in 2026?
How much are property prices expected to increase in Canary Islands in 2026?
As of early 2026, property prices in Canary Islands are expected to increase by approximately 7% to 9% over the course of the year, outpacing the Spanish national forecast of around 5% to 7%.
Different analysts offer a range of forecasts for Canary Islands, with conservative estimates around 5% to 6% and more optimistic projections reaching 10% to 11% depending on how tourism and foreign demand perform.
Most price forecasts for Canary Islands assume that interest rates will remain stable or edge lower, that foreign buyer demand stays strong, and that housing supply continues to lag behind demand throughout 2026.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Canary Islands.
Which neighborhoods will see the highest price growth in Canary Islands in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Canary Islands include Carretera del Centro-Cono Sur in Las Palmas, La Salud-La Salle in Santa Cruz de Tenerife, and Argana-Maneje in Arrecife.
These top-performing Canary Islands neighborhoods are projected to see price growth of 15% to 25% in 2026, significantly above the regional average of 7% to 9%.
The primary catalyst is affordability-driven spillover: as premium coastal areas become too expensive, buyers redirect to these neighborhoods where prices still have room to rise.
One emerging neighborhood in Canary Islands that could surprise with higher-than-expected growth is Ofra-Costa Sur in Santa Cruz de Tenerife, where improving amenities and commuter practicality are attracting growing interest.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Canary Islands.
What property types will appreciate the most in Canary Islands in 2026?
As of early 2026, apartments and condos in walkable coastal and urban areas are expected to appreciate the most in Canary Islands, followed by townhouses in family-oriented commuter zones.
The projected appreciation for top-performing apartments in Canary Islands is around 9% to 12% for 2026, driven by their high liquidity and rental flexibility.
The main demand trend favoring apartments is that they serve multiple buyer profiles at once: young locals buying their first home, mainland Spaniards seeking vacation properties, and foreign investors looking for rental income.
On the other hand, large detached villas in Canary Islands may underperform in 2026 because they depend heavily on high-net-worth buyers and are more sensitive to shifts in tourism sentiment and regulatory changes around tourist rentals.
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.
How will interest rates affect property prices in Canary Islands in 2026?
As of early 2026, current interest rate trends are supporting property prices in Canary Islands because Euribor has settled around 2%, making mortgage payments more manageable than during the peak-rate period of 2023-2024.
The benchmark Euribor rate entering 2026 stands at approximately 2.0% to 2.1%, and most analysts expect mortgage rates to remain stable or edge slightly lower if the European Central Bank continues its cautious easing path.
To put it simply, a 1% increase in interest rates typically reduces buying power by about 10% in Canary Islands, which would cool demand first in investor-heavy resort areas before affecting local family neighborhoods.
You can also read our latest update about mortgage and interest rates in Spain.
What are the biggest risks for property prices in Canary Islands in 2026?
As of early 2026, the three biggest risks for property prices in Canary Islands are regulatory uncertainty around tourist-use housing (Law 6/2025), a potential rebound in interest rates if inflation surprises, and any global shock that reduces foreign buyer demand.
The risk with the highest probability of materializing in Canary Islands is regulatory uncertainty, because the new tourist-housing law is already causing some investors to pause or redirect their purchases while the rules settle.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Canary Islands.
Is it a good time to buy a rental property in Canary Islands in 2026?
As of early 2026, it can be a good time to buy a rental property in Canary Islands if you focus on long-term rentals in areas with year-round demand like Las Palmas or Santa Cruz, though short-term tourist rentals carry more regulatory uncertainty.
The strongest argument for buying now is that supply remains constrained while rental demand keeps growing, which means well-located apartments in Canary Islands should generate steady income and continue appreciating.
The strongest argument for waiting is that the new tourist-use housing regulations are still being implemented, and if you are counting on short-term rental income, the rules could change in ways that affect your returns.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Canary Islands.
You'll also find a dedicated document about this specific question in our pack about real estate 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.
Where will property prices be in 5 years in Canary Islands?
What is the 5-year property price forecast for Canary Islands as of 2026?
As of early 2026, cumulative property price growth in Canary Islands over the next 5 years is expected to land between 22% and 34%, assuming stable economic conditions and continued demand from foreign and domestic buyers.
The range of 5-year forecasts spans from a conservative scenario of around 10% to 18% total growth (if rates rise or regulations tighten) up to an optimistic scenario of 35% to 45% total growth (if tourism booms and supply stays constrained).
This translates to an average annual appreciation rate of roughly 4% to 6% per year for Canary Islands properties over the next five years.
The key assumption most forecasters rely on is that the structural housing undersupply in Canary Islands will persist because island land is finite and construction cannot easily scale up to meet demand.
Which areas in Canary Islands will have the best price growth over the next 5 years?
The top three areas in Canary Islands expected to have the best price growth over the next 5 years are Las Palmas de Gran Canaria (especially neighborhoods like Carretera del Centro-Cono Sur and Ciudad Alta), Santa Cruz de Tenerife (La Salud-La Salle and Ofra-Costa Sur), and the Tenerife South corridor near planned transport improvements.
These top-performing areas in Canary Islands could see 5-year cumulative price growth of 35% to 50%, outpacing the regional average by a meaningful margin.
This is broadly consistent with our shorter-term 2026 forecast, though the 5-year view adds infrastructure-driven upside in Tenerife South, where the planned rail project could meaningfully improve commute times and attract new demand.
One currently undervalued area with strong 5-year potential is Ciudad Alta in Las Palmas, where improving amenities and relatively affordable entry prices create room for catch-up growth.
What property type will give the best return in Canary Islands over 5 years as of 2026?
As of early 2026, well-located apartments and condos in urban and coastal zones are expected to give the best total return over 5 years in Canary Islands, combining solid appreciation with consistent rental income potential.
The projected 5-year total return for top-performing apartments in Canary Islands (including both price appreciation and rental income) is estimated at 40% to 55%, assuming stable occupancy and moderate rent growth.
The main structural trend favoring apartments is their high liquidity and broad buyer appeal: they sell faster, rent easier, and attract the widest range of purchasers from first-time local buyers to foreign investors.
For those seeking a balance of decent returns with lower risk, townhouses in established family neighborhoods offer a good middle ground in Canary Islands because they combine steady local demand with less exposure to tourism cycles.
How will new infrastructure projects affect property prices in Canary Islands over 5 years?
The top three major infrastructure projects expected to impact property prices in Canary Islands over the next 5 years are the Tenerife South rail line (connecting San Isidro to Costa Adeje), the over 1 billion euro airport investment program announced by Aena, and ongoing road and mobility improvements across the main islands.
Properties near completed infrastructure projects in Canary Islands typically command a price premium of 10% to 20% compared to similar homes in less connected areas, based on historical patterns in Spanish markets.
The neighborhoods most likely to benefit from these infrastructure developments in Canary Islands include areas along the Tenerife South rail corridor, zones near expanded airport facilities, and commuter-friendly neighborhoods in Las Palmas and Santa Cruz that gain from improved road links.
How will population growth and other factors impact property values in Canary Islands in 5 years?
Population growth in Canary Islands is projected at roughly 0.5% to 1% annually over the next 5 years, which will add steady pressure to housing demand and support property values, especially in urban centers like Las Palmas and Santa Cruz.
The demographic shift with the strongest influence on Canary Islands property demand is the growth in smaller households (singles, couples without children, retirees), which increases demand for apartments and smaller homes relative to larger family houses.
Migration patterns, both domestic (mainland Spaniards seeking lifestyle relocations) and international (European retirees and remote workers), are expected to keep pushing property values higher in coastal and well-connected areas of Canary Islands over the next 5 years.
The property types and areas that will benefit most from these demographic trends in Canary Islands are two-bedroom apartments in walkable urban neighborhoods and coastal zones with good amenities, healthcare access, and transport links.
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.
What is the 10 year property price outlook in Canary Islands?
What is the 10-year property price prediction for Canary Islands as of 2026?
As of early 2026, cumulative property price growth in Canary Islands over the next 10 years is expected to fall between 40% and 60% in the baseline scenario, driven by persistent supply constraints and sustained demand from local, domestic, and foreign buyers.
The range of 10-year forecasts for Canary Islands spans from a conservative scenario of around 25% total growth (if major headwinds materialize) up to an optimistic scenario of around 80% total growth (if all demand drivers remain strong and supply stays tight).
This works out to an average annual appreciation rate of roughly 3.5% to 5% per year for Canary Islands properties over the next decade.
The biggest uncertainty factor in making 10-year property price predictions for Canary Islands is how regulatory policy around tourist-use housing evolves, because shifts in these rules could significantly alter investor demand and rental economics.
What long-term economic factors will shape property prices in Canary Islands?
The top three long-term economic factors that will shape property prices in Canary Islands over the next decade are tourism resilience and air connectivity, the balance between residential housing needs and tourist-use regulations, and euro area interest rate and credit conditions.
The single long-term factor with the most positive impact on Canary Islands property values is likely to be continued infrastructure investment in airports and transport, which reinforces the islands' appeal as a global lifestyle and tourism destination.
The single long-term factor posing the greatest structural risk to Canary Islands property values is regulatory uncertainty, because ongoing debates about housing affordability and tourist rentals could lead to policy changes that dampen investor demand.
You'll also find a much more detailed analysis in our pack about real estate in Canary Islands.
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 |
|---|---|---|
| Spain National Statistics Institute (INE) | Spain's official statistics agency publishing the core national house price index. | We used it to anchor real price growth and avoid relying only on listings data. We treat it as the benchmark for confirmed quarterly trends. |
| ISTAC (Canary Islands Statistics) | The Canary Islands' official statistical office, closest to local market reality. | We used it to localize the national story with Canary-specific new versus resale dynamics. We cross-checked it against INE for consistency. |
| ISTAC Appraised Value Data | Official Canary Islands series using valuation data updated consistently. | We used it as a second pricing lens to triangulate against transaction and listing prices. We explained why different sources show different figures. |
| Spain Ministry of Housing (MIVAU) | Central government's housing statistics hub with published methodology. | We used it to keep appraised-value comparisons methodologically clean across regions. We referenced methodology notes to explain what appraisals include. |
| Colegio de Registradores | Based on registered property transactions and widely cited in Spain. | We used it for transaction-based prices per square meter and foreign buyer share in Canary Islands. We cross-checked it against notaries and official indices. |
| Spanish Notaries | Notaries observe executed sales and speak to real transaction prices. | We used it as independent validation of transaction prices in Canary Islands. We supported explanations about real market prices versus asking prices. |
| Banco de España | Spain's central bank publishing official benchmark mortgage rates. | We used it to pin down the interest rate backdrop entering 2026. We translated rates into buyer affordability and explained demand pressure. |
| BOE (Official State Gazette) - Rates | Official publication of Spain's legally referenced mortgage benchmarks. | We used it as the hard reference for late-2025 Euribor levels entering 2026. We cited it when discussing variable-rate mortgage sensitivity. |
| ECB Data Portal | European Central Bank's official data source for euro area policy rates. | We used it to explain the direction of euro area monetary policy feeding into Euribor. We framed 2026 mortgage rate scenarios using this data. |
| Eurostat | EU's official statistics office enabling cross-country context. | We used it to give readers simple Spain versus EU context. We confirmed that Spain's cycle is hotter than the EU average. |
| idealista | Spain's largest property marketplace with massive coverage of asking prices. | We used it for fresh neighborhood-level asking prices and momentum into January 2026. We clearly labeled it as listings and triangulated against transaction data. |
| Tinsa | Major Spanish valuation firm whose indices are widely followed. | We used it as a valuation-based cross-check of Canary price levels and annual change. We confirmed direction and magnitude versus other sources. |
| BBVA Research | Major bank research team with transparent forecasts and drivers. | We used it as a big forecast anchor for Spain's 2026 outlook. We then adjusted to Canary specifics using local evidence. |
| CaixaBank Research | Leading Spanish bank research with detailed housing market analysis. | We used it to understand Spain's supply gap narrative and price drivers. We incorporated their forecasts into our regional adjustments. |
| Gobierno de Canarias Economic Forecasts | Canary government's macro outlook useful for demand fundamentals. | We used it to ground the local income and jobs outlook driving buying power. We cross-checked against bank forecasts for balance. |
| Aena | Official airport operator providing primary-source infrastructure planning. | We used it to support the connectivity tailwind for demand in key islands. We linked infrastructure to micro-markets near airports and tourism corridors. |
| Gobierno de Canarias - Tenerife Train | Official government announcement about major mobility investment. | We used it to identify potential 5-year winners along planned corridors. We paired it with neighborhood examples where commute relief would matter most. |
| BOE - Canary Law 6/2025 | Official publication of the Canary law affecting tourist-use rules. | We used it to explain the tug-of-war between residential and tourist use. We treat it as a risk lever for 2026-2030 forecasts. |
| Eurostat Demographics | EU's official demographic data for population and migration trends. | We used it to contextualize population growth and household formation. We connected demographic shifts to housing demand patterns. |
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If you want to go deeper, you can read the following:
- Is now a good time to invest in property in Canary Islands?