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Everything you need to know before buying real estate is included in our Spain Property Pack
Yes, the Canary Islands real estate market is booming in 2026, with property prices rising faster than almost anywhere else in Spain.
In this article, we will explore the current housing prices in the Canary Islands, the neighborhoods improving the fastest, the challenges foreigners face, and what realistic projections look like for the coming years.
We constantly update this blog post to bring you the freshest data available.
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.
How's the real estate market going in Canary Islands in 2026?
What's the average days-on-market in Canary Islands in 2026?
As of early 2026, the estimated average days-on-market for a typical resale residential property in the Canary Islands sits between 75 and 110 days, depending on location and pricing.
That said, properties priced correctly in hot areas like Puerto-Canteras in Las Palmas de Gran Canaria or Costa Adeje in Tenerife often go under offer in just 30 to 60 days, while overpriced or quirky listings can linger for 120 to 180 days or longer.
Compared to one or two years ago, days-on-market in the Canary Islands have generally shortened because demand from both locals and foreign buyers has outpaced the limited supply of quality listings, creating a faster-moving market overall.
Are properties selling above or below asking in Canary Islands in 2026?
As of early 2026, well-priced homes in the Canary Islands typically sell at around 0% to 5% below the asking price, while prime properties with sea views or in walkable coastal locations can sell at asking or even 2% to 3% above.
We estimate that roughly 15% to 20% of transactions in the most competitive areas close at or above asking, though this figure is harder to pin down because Spain does not publish official sale-to-list ratios, so confidence is moderate but grounded in observable price acceleration.
The neighborhoods most likely to see bidding wars in the Canary Islands right now include Puerto-Canteras and Guanarteme in Las Palmas de Gran Canaria, as well as Adeje, Costa Adeje, and La Laguna in Tenerife, where limited inventory meets strong demand from both local residents and international buyers.
By the way, you will find much more detailed data in our property pack covering the real estate market in Canary Islands.
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.
What kinds of residential properties can I realistically buy in Canary Islands?
What property types dominate in Canary Islands right now?
In the Canary Islands, apartments make up roughly 60% of the residential market, followed by terraced homes and duplexes at about 20%, detached villas at around 12%, new-build apartments at 5%, and rural fincas at about 3%.
The single property type representing the largest share of the Canary Islands market is the standard apartment, which dominates listings in both urban centers like Las Palmas de Gran Canaria and Santa Cruz de Tenerife, as well as in tourism-heavy coastal zones.
Apartments became so prevalent in the Canary Islands because the islands' geography limits buildable land, and the tourism-driven economy favors denser, apartment-style developments near beaches and services rather than sprawling single-family homes.
If you want to know more, you should read our dedicated analyses:
- 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?
Are new builds widely available in Canary Islands right now?
New-build properties represent only about 5% to 8% of all residential listings in the Canary Islands, making them relatively scarce compared to resale stock because land availability is limited and planning processes are slow on the islands.
As of early 2026, the highest concentrations of new-build developments in the Canary Islands can be found on the expansion edges of Las Palmas de Gran Canaria, in certain redevelopment zones in Santa Cruz de Tenerife, and in select resort areas of Adeje and Arona on Tenerife's south coast.
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Which neighborhoods are improving fastest in Canary Islands in 2026?
Which areas in Canary Islands are gentrifying in 2026?
As of early 2026, the neighborhoods in the Canary Islands showing the clearest signs of gentrification include Carretera del Centro-Cono Sur and Vegueta-Triana in Las Palmas de Gran Canaria, as well as Los Majuelos-Taco in San Cristóbal de La Laguna on Tenerife.
The visible changes indicating gentrification in these areas include the arrival of specialty coffee shops and coworking spaces, renovation of older buildings into modern apartments, and an influx of younger professionals and remote workers who can afford rising rents.
In these gentrifying neighborhoods of the Canary Islands, prices have appreciated roughly 15% to 25% over the past two to three years, with some pockets like Carretera del Centro showing even stronger annual gains in late 2025 according to portal data.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Canary Islands.
Where are infrastructure projects boosting demand in Canary Islands in 2026?
As of early 2026, the areas in the Canary Islands where infrastructure projects are most clearly boosting housing demand include the TF-5 corridor on Tenerife's north coast and zones near the two main airports, Tenerife Sur and Gran Canaria, which continue to see expanded flight connectivity.
The specific infrastructure projects driving demand include road capacity upgrades along the TF-5 highway connecting Santa Cruz de Tenerife to La Laguna and Puerto de la Cruz, as well as ongoing terminal improvements at both major airports that support rising passenger volumes.
Most of these road improvement projects in Tenerife are in various stages of completion, with key phases expected to wrap up between 2026 and 2028, while airport upgrades are ongoing as AENA responds to record passenger numbers.
In the Canary Islands, the typical price impact of major infrastructure improvements tends to be around 5% to 10% upon announcement and an additional 5% to 15% once projects are completed, though this varies heavily by proximity and existing accessibility.
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.
What do locals and insiders say the market feels like in Canary Islands?
Do people think homes are overpriced in Canary Islands in 2026?
As of early 2026, the general sentiment among locals and market insiders in the Canary Islands is that homes feel expensive relative to local wages, though many also recognize that strong demand and limited supply justify much of the price growth.
When arguing homes are overpriced, locals in the Canary Islands often point to the gap between average salaries (around 1,500 to 1,800 euros per month for many workers) and average property prices now exceeding 3,000 euros per square meter, making homeownership feel out of reach.
Those who believe prices are fair counter that the Canary Islands offer year-round sunshine, lifestyle appeal, and strong rental demand from tourists and remote workers, which supports higher valuations compared to less desirable mainland locations.
The price-to-income ratio in the Canary Islands now sits around 7 to 8 years of average household income to buy an average home, which is slightly above the Spanish national average and in line with other tourism-heavy regions like the Balearic Islands.
What are common buyer mistakes people regret in Canary Islands right now?
The most frequently cited buyer mistake in the Canary Islands is purchasing a property with plans to run it as a short-term rental without first verifying that the specific unit has a valid tourist license under the new Ley 6/2025, which now requires community approval and compliance with strict zoning rules.
The second most common regret is underestimating the power of community rules in resort-style developments, where buyers discover after purchase that their comunidad de propietarios prohibits or heavily restricts tourist rentals, charges high monthly fees, or limits renovations.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Canary Islands.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Canary Islands.
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How easy is it for foreigners to buy in Canary Islands in 2026?
Do foreigners face extra challenges in Canary Islands right now?
The overall difficulty level for foreigners buying property in the Canary Islands is moderate, meaning the process is legally straightforward but requires careful paperwork, patience with bureaucracy, and awareness of local rules that differ from most home countries.
The main legal requirement for foreign buyers in the Canary Islands is obtaining a NIE (Número de Identificación de Extranjero) through the official Police procedure, which is mandatory for signing contracts, opening a Spanish bank account, and completing the purchase at the notary.
Practical challenges foreigners commonly face in the Canary Islands include slower-than-expected NIE appointment availability in places like Las Palmas and Santa Cruz, the need for certified translations of financial documents, and navigating the strict new holiday rental licensing rules if they plan to rent out the property.
We will tell you more in our blog article about foreigner property ownership in Canary Islands.
Do banks lend to foreigners in Canary Islands in 2026?
As of early 2026, mortgage financing is available to foreign buyers in the Canary Islands from most major Spanish banks, though non-residents typically face stricter conditions than Spanish residents and should expect a more document-intensive process.
Foreign buyers in the Canary Islands can generally expect loan-to-value ratios of 60% to 70%, meaning a minimum deposit of 30% to 40% is required, with fixed interest rates currently ranging from about 2.8% to 3.5% depending on the bank and borrower profile.
Banks in the Canary Islands typically require foreign applicants to provide a valid passport and NIE, proof of stable income through employment contracts or tax returns, six to twelve months of bank statements, and sometimes a credit reference from their home country.
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.
How risky is buying in Canary Islands compared to other nearby markets?
Is Canary Islands more volatile than nearby places in 2026?
As of early 2026, the Canary Islands show moderate price volatility compared to nearby markets like the Balearic Islands and the Costa del Sol, with slightly higher exposure to tourism cycles but also a stabilizing effect from year-round visitor demand.
Over the past decade, the Canary Islands experienced a price drop of roughly 25% to 30% during the 2008-2014 crisis and have since recovered to exceed pre-crisis levels, while the Balearic Islands saw sharper swings due to their more seasonal tourism pattern.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Canary Islands.
Is Canary Islands resilient during downturns historically?
The Canary Islands have shown moderate historical resilience during economic downturns, with prime coastal and urban lifestyle zones recovering faster than secondary inland areas because international demand and tourism continued to provide a floor.
During the 2008-2014 downturn, property prices in the Canary Islands dropped roughly 25% to 35% from peak to trough, and recovery back to pre-crisis levels took approximately eight to ten years depending on the specific municipality.
The property types and neighborhoods in the Canary Islands that have historically held value best during downturns include beachfront apartments in Las Canteras (Las Palmas), premium villas in Adeje and Costa Adeje, and well-located units in the historic Vegueta-Triana district of Las Palmas de Gran Canaria.
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How strong is rental demand behind the scenes in Canary Islands in 2026?
Is long-term rental demand growing in Canary Islands in 2026?
As of early 2026, long-term rental demand in the Canary Islands is growing steadily, with asking rents up about 7% to 8% year-over-year and vacancy rates in popular areas sitting between just 2% and 4%, indicating a very tight market.
The tenant demographics driving long-term rental demand in the Canary Islands include young local professionals priced out of buying, students near universities like ULPGC and Universidad de La Laguna, remote workers from northern Europe, and tourism industry employees who need year-round housing.
The neighborhoods with the strongest long-term rental demand in the Canary Islands right now include Las Canteras and Guanarteme in Las Palmas de Gran Canaria, areas near the university in La Laguna, and parts of Santa Cruz de Tenerife's city center where rental listings disappear within days.
You might want to check our latest analysis about rental yields in Canary Islands.
Is short-term rental demand growing in Canary Islands in 2026?
The Canary Islands' new holiday rental law (Ley 6/2025) introduced significant regulatory changes requiring a 60% community vote for approval, registration in the Registro General Turístico, and compliance with municipal zoning, with some areas like Las Palmas de Gran Canaria already declaring themselves "stressed zones" where new licenses may be suspended.
As of early 2026, underlying short-term rental demand in the Canary Islands remains strong because the islands received over 16 million international tourists in 2025, with the UK and Germany continuing as the top source markets.
Average occupancy rates for compliant short-term rentals in the Canary Islands currently sit around 65% to 75% annually, though this varies significantly by location, with south Tenerife and beachfront Gran Canaria properties often exceeding 80%.
The guest demographics driving short-term rental demand in the Canary Islands include traditional sun-seeking tourists from the UK and Germany, digital nomads taking advantage of year-round good weather, and families looking for apartment-style accommodation with more space than hotels offer.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Canary Islands.
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 are the realistic short-term and long-term projections for Canary Islands in 2026?
What's the 12-month outlook for demand in Canary Islands in 2026?
As of early 2026, the 12-month demand outlook for residential property in the Canary Islands is steady to strong, with continued interest from both local buyers and foreign purchasers keeping the market competitive in walkable urban and coastal areas.
The key factors most likely to influence demand in the Canary Islands over the next 12 months include European interest rate decisions by the ECB, any new restrictions on foreign buyers that Spain may negotiate with the EU, and the ongoing strength of tourism arrivals from the UK and Germany.
Based on current trends, forecasters expect property prices in the Canary Islands to rise another 5% to 10% over the next 12 months, though this could moderate if new regulations dampen foreign investor appetite or if tourism growth slows.
By the way, we also have an update regarding price forecasts in Spain.
What's the 3-5 year outlook for housing in Canary Islands in 2026?
As of early 2026, the 3-5 year outlook for housing prices and demand in the Canary Islands is "supported but more regulated," meaning prices are likely to continue rising moderately but with increasing constraints from holiday rental rules and potential foreign buyer restrictions.
Major development projects expected to shape the Canary Islands over the next 3-5 years include continued airport capacity improvements, the rollout of Tenerife's Teide National Park eco-tax and access controls starting in 2026, and potential new public housing initiatives aimed at easing the affordability crisis.
The single biggest uncertainty that could alter the 3-5 year outlook for the Canary Islands is whether the Spanish government and the EU agree on measures to restrict property purchases by non-residents, which would significantly change the demand dynamics in a market where foreigners account for about 20% to 36% of transactions.
Are demographics or other trends pushing prices up in Canary Islands in 2026?
As of early 2026, demographic trends are having a meaningful impact on housing prices in the Canary Islands, with net migration to the islands (both from mainland Spain and internationally) adding pressure to an already tight housing supply.
The specific demographic shifts most affecting prices in the Canary Islands include an influx of remote workers from northern Europe seeking year-round sunshine, continued population growth in the two main urban centers, and household formation among young Canarians who increasingly compete with wealthier foreign buyers.
Non-demographic trends also pushing prices in the Canary Islands include the growing appeal of "lifestyle migration" among retirees, strong investor interest in tourism-linked rental properties, and the islands' positioning as a digital nomad hub with good internet and favorable time zones for working with European and American clients.
These demographic and trend-driven price pressures in the Canary Islands are expected to continue for at least the next 3-5 years, as long as the islands remain an attractive destination and new housing supply fails to keep pace with demand.
What scenario would cause a downturn in Canary Islands in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in the Canary Islands would be a sustained drop in tourism arrivals combined with a sharp tightening of credit conditions, which together would reduce both foreign second-home demand and local purchasing power.
Early warning signs that such a downturn might be beginning in the Canary Islands include a noticeable decline in monthly airport passenger numbers reported by AENA, rising days-on-market for listings in previously hot areas like Costa Adeje or Las Canteras, and an increase in price reductions on major portals.
Based on historical patterns, a potential downturn in the Canary Islands could realistically see prices drop 15% to 25% from peak levels over 2-3 years, though prime coastal properties would likely hold up better than secondary locations, similar to what happened during the 2008-2014 correction.
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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 (Instituto Canario de Estadística) | It's the Canary Islands' official statistics office, so it's the closest thing to "ground truth" for regional trends. | We used ISTAC to anchor how fast prices were rising in the Canary Islands recently. We treat it as the baseline and cross-check portal and valuation indexes against it. |
| INE (Instituto Nacional de Estadística) | INE is Spain's national statistics agency and its house price index is widely referenced by regulators and the ECB. | We used INE to explain what "official" house-price growth measures and to compare the Canary Islands with other Spanish regions consistently. |
| Colegio de Registradores | The property registrars compile transaction and buyer data straight from registrations. | We used the Registradores data to triangulate demand, sales volumes, and the role of foreign buyers. We also use it as the "transactions" counterpart to listing-portal signals. |
| Consejo General del Notariado | Notaries are directly involved in completions, so their stats are close to final transaction reality. | We used notary data to anchor the national scale and direction of foreign buying. We then cross-check Canary Islands-specific "foreign share" numbers reported off registrars and notaries coverage. |
| Banco de España | It's Spain's central bank, and it evaluates housing risks and valuation imbalances systematically. | We used the Banco de España to frame "overpricing" risk and credit conditions as regulators see them. We use it to keep the narrative grounded when portal headlines feel extreme. |
| Idealista | It's a major Spanish property portal with transparent price indexes and long time series at the neighborhood level. | We used Idealista to name real neighborhoods, spot fast risers, and estimate rental-market tightness. We note it measures advertised prices, not signed contracts. |
| Tinsa | Tinsa is a long-standing Spanish valuation and housing-market research firm used by lenders and professionals. | We used Tinsa to cross-check whether portal "asking prices" look inflated or consistent with valuation-based signals. We use it as a second opinion on direction and turning points. |
| Gobierno de Canarias (BOC) - Ley 6/2025 | It's the official legal text in the Canary Islands' bulletin (BOC), so it's the definitive source for holiday rental regulations. | We used the BOC to assess short-term rental rule risk for buyers. We use it to highlight where due diligence must be extra strict around licensing and zoning. |
| Policía Nacional (Sede) | It's the official government procedure page for getting a NIE, which foreigners need for key transactions. | We used it to list the "must-do first" admin steps for a foreign buyer. We use it to keep the process practical and non-vague. |
| AENA | AENA runs Spain's main airports and publishes the official passenger statistics. | We used AENA as a proxy for tourism intensity, which drives rentals and second-home demand. We use it to cross-check "rental demand" stories with real traveler flow. |
| Promotur / Frontur (ISTAC) | It's an official tourism statistics publication linked to ISTAC and Frontur. | We used Frontur to ground the 2026 outlook in actual recent arrivals data. We use it to connect demand hotspots to where visitors are concentrating by island. |