Authored by the expert who managed and guided the team behind the Spain Property Pack
Everything you need to know before buying real estate is included in our Spain Property Pack
The Canary Islands property market in early 2026 is shaped by record price growth, strict new short-term rental regulations, and significant infrastructure projects on the horizon.
Prices have risen over 15% year-on-year in some districts, with foreign buyers accounting for nearly 29% of all property transactions in the archipelago.
We constantly update this blog post to reflect the latest data and market developments as they happen.
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.
What's the Current Real Estate Market Situation by Area in Canary Islands?
Which areas in Canary Islands have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for property in the Canary Islands are Santa Catalina-Canteras in Las Palmas de Gran Canaria (around 4,280 euros per square meter), Guanarteme also in Las Palmas (around 3,825 euros per square meter), and Costa Adeje in southern Tenerife (ranging from 3,800 to 5,100 euros per square meter).
In these prime districts of the Canary Islands, you should expect to pay anywhere from 3,500 to 5,100 euros per square meter depending on the exact street and property condition.
Each of these expensive areas commands high prices for different reasons:
- Santa Catalina-Canteras (Las Palmas): direct beachfront access to Las Canteras, one of Spain's best urban beaches, plus walkable urban lifestyle.
- Guanarteme (Las Palmas): combines beach proximity with a trendy cafe and restaurant scene popular with remote workers and expats.
- Costa Adeje (Tenerife): luxury resort infrastructure, five-star hotels, and year-round tourist demand that supports rental income.
Which areas in Canary Islands have the most affordable property prices in 2026?
As of early 2026, the most affordable areas for property in the Canary Islands are Carretera del Centro-Cono Sur in Las Palmas de Gran Canaria (around 1,480 euros per square meter), Tamaraceite-San Lorenzo-Tenoya also in Las Palmas (around 1,690 euros per square meter), Suroeste district in Santa Cruz de Tenerife (around 1,700 euros per square meter), and Galdar in northern Gran Canaria (ranging from 1,100 to 1,500 euros per square meter).
In these more budget-friendly neighborhoods of the Canary Islands, you can find properties priced between 1,100 and 1,900 euros per square meter, which is roughly half the cost of prime coastal areas.
The main trade-off in these lower-priced areas is that you'll typically be further from the beach and more dependent on a car, plus resale liquidity to international buyers tends to be thinner because demand is primarily local rather than from tourists or expats.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Canary Islands Offer the Best Rental Yields?
Which neighborhoods in Canary Islands have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in the Canary Islands with the highest gross rental yields are La Isleta in Las Palmas de Gran Canaria (around 6.3% gross), Vegueta-Triana also in Las Palmas (around 5.7% gross), La Salud-La Salle in Santa Cruz de Tenerife (around 5.6% gross), and Puerto-Canteras overall in Las Palmas (around 5.2% gross).
Across the Canary Islands as a whole, typical gross rental yields for long-term rentals range from 4% to 6.5%, which compares favorably to mainland Spain's major cities where yields often sit closer to 3.5% to 4.5%.
Here is why these top-yielding neighborhoods in the Canary Islands deliver higher returns:
- La Isleta (Las Palmas): lower entry prices (around 3,000 euros per square meter) with rents comparable to pricier neighboring areas.
- Vegueta-Triana (Las Palmas): heritage charm attracts professionals willing to pay solid rents, while purchase prices remain moderate.
- La Salud-La Salle (Santa Cruz): city-center tenant demand from local workers keeps vacancy low and rents steady year-round.
- Puerto-Canteras (Las Palmas): strong hybrid demand from both tourists and long-term residents supports consistent rental income.
Finally, please note that we cover the rental yields in Canary Islands here.
Make a profitable investment in Canary Islands
Better information leads to better decisions. Save time and money. Download our guide.
Which Areas in Canary Islands Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Canary Islands perform best on Airbnb in 2026?
As of early 2026, the neighborhoods that historically perform best for short-term vacation rentals in the Canary Islands are Playa Blanca in Yaiza (Lanzarote) with average daily rates around 277 euros, Costa Adeje and La Caleta in Adeje (Tenerife), Puerto del Carmen in Tias (Lanzarote) with average daily rates around 220 euros, and Maspalomas-Meloneras in San Bartolome de Tirajana (Gran Canaria).
In these top-performing vacation rental areas of the Canary Islands, well-managed properties have historically generated monthly revenues ranging from 2,500 to 5,000 euros during peak season, though the new five-year moratorium on new licenses means only already-registered properties can legally operate.
Here is what historically made these neighborhoods in the Canary Islands outperform for short-term rentals:
- Playa Blanca (Yaiza, Lanzarote): premium beachfront location with upscale villas that command the highest average daily rates in the archipelago.
- Costa Adeje (Tenerife): luxury resort infrastructure and proximity to five-star hotels create spillover demand for vacation apartments.
- Puerto del Carmen (Tias, Lanzarote): established tourist hub with direct airport access and a mix of budget and mid-range visitors.
- Maspalomas-Meloneras (Gran Canaria): iconic dunes, gay-friendly reputation, and year-round sunshine attract repeat visitors.
Important note for 2026: The Canary Islands government introduced a five-year moratorium on new vacation rental licenses in late 2025. Only properties that were already registered can continue operating legally. Airbnb has removed over 10,000 irregular listings following an agreement with regional authorities. If you are considering buying for short-term rentals, you should only purchase properties with an existing, valid VV (Vivienda Vacacional) license already in place.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Canary Islands.
Which tourist areas in Canary Islands are becoming oversaturated with short-term rentals?
The tourist areas in the Canary Islands showing signs of oversaturation with short-term rentals are La Oliva (including Corralejo and El Cotillo) in Fuerteventura, which holds 57% of that island's vacation rental supply, Yaiza plus Tias (Playa Blanca and Puerto del Carmen) in Lanzarote representing over 60% of that island's supply combined, and San Bartolome de Tirajana (Maspalomas, Playa del Ingles, Meloneras) in Gran Canaria holding 36% of that island's vacation rentals.
In these oversaturated areas of the Canary Islands, vacation rental density has reached the point where some municipalities exceed the legal cap of 10% of total habitable space dedicated to tourist accommodation.
The clearest indicator of oversaturation in these Canary Islands areas is that average daily rates have stopped growing despite rising tourism numbers, meaning new supply has absorbed demand and operators now compete on price rather than quality, which erodes returns for everyone.
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 Areas in Canary Islands Are Best for Long-Term Rentals?
Which neighborhoods in Canary Islands have the strongest demand for long-term tenants?
The neighborhoods in the Canary Islands with the strongest demand for long-term tenants are Guanarteme and Santa Catalina-Canteras in Las Palmas de Gran Canaria, Centro-Ifara and La Salud-La Salle in Santa Cruz de Tenerife, and Triana within the Vegueta-Triana district of Las Palmas.
In these high-demand neighborhoods of the Canary Islands, vacancy rates for well-priced long-term rentals typically sit between 2% and 4%, meaning apartments often rent within two to four weeks of listing.
Here is the tenant profile that predominantly drives demand in each of these neighborhoods:
- Guanarteme (Las Palmas): remote workers, digital nomads, and young professionals seeking walkable beach lifestyle.
- Santa Catalina-Canteras (Las Palmas): mix of tourists on extended stays, service industry workers, and expat retirees.
- Centro-Ifara (Santa Cruz): government employees, administrative workers, and local professionals working in the capital.
- Triana (Las Palmas): creative professionals and young couples attracted to heritage architecture and cafe culture.
The key characteristic that makes these neighborhoods attractive to long-term tenants in the Canary Islands is walkability, meaning residents can access beaches, shops, restaurants, and public transport without needing a car, which is increasingly valued by both locals and international renters.
Finally, please note that we provide a very granular rental analysis in our property pack about Canary Islands.
What are the average long-term monthly rents by neighborhood in Canary Islands in 2026?
As of early 2026, average long-term monthly rents in the Canary Islands main neighborhoods are approximately 16.70 euros per square meter in Puerto-Canteras (Las Palmas), 13.70 euros per square meter in Centro-Ifara (Santa Cruz), 12.80 euros per square meter in Vegueta-Triana (Las Palmas), and 13.30 euros per square meter for Santa Cruz de Tenerife overall.
In the most affordable neighborhoods of the Canary Islands, entry-level apartments (around 50 to 60 square meters) typically rent for 550 to 750 euros per month, which you can find in areas like Tamaraceite, Ofra-Costa Sur, or inland municipalities.
In average-priced neighborhoods of the Canary Islands, mid-range apartments (around 70 to 85 square meters) typically rent for 800 to 1,100 euros per month, which covers areas like La Salud-La Salle, Vegueta, or La Isleta.
In the most expensive neighborhoods of the Canary Islands, high-end apartments (around 80 to 100 square meters) typically rent for 1,300 to 1,800 euros per month, which applies to prime locations like Santa Catalina-Canteras, Guanarteme, or Costa Adeje.
You may want to check our latest analysis about the rents in Canary Islands here.
Get fresh and reliable information about the market in Canary Islands
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Which Are the Up-and-Coming Areas to Invest in Canary Islands?
Which neighborhoods in Canary Islands are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in the Canary Islands that are gentrifying and attracting new investors are Triana (within Vegueta-Triana in Las Palmas de Gran Canaria), La Isleta (northern end of Puerto-Canteras in Las Palmas), Guanarteme (Las Palmas), and La Salud-La Salle (Santa Cruz de Tenerife).
These gentrifying neighborhoods in the Canary Islands have experienced annual price appreciation rates ranging from 9% to over 15% in the past year, with Triana leading at approximately 15.8% year-on-year growth and Guanarteme showing around 9% growth.
Which areas in Canary Islands have major infrastructure projects planned that will boost prices?
The areas in the Canary Islands with major infrastructure projects planned that could boost property prices are the corridor along the proposed Tenerife South Railway (connecting Santa Cruz to Costa Adeje), neighborhoods along the MetroGuagua BRT line in Las Palmas de Gran Canaria, and areas near airports benefiting from the Aena DORA III investment program (2027 to 2031).
The specific infrastructure projects underway or planned in the Canary Islands include the Tenerife railway with government financing protocols already signed in 2025, the MetroGuagua bus rapid transit system in Las Palmas (expected operational by 2028) with over 100 million euros in investment, and Aena's 800 million euro airport upgrade program for Canary Islands airports focused on Tenerife South and Gran Canaria.
Historically in the Canary Islands, areas that have received major transport infrastructure improvements have seen property price increases of 10% to 20% above the regional average over the five years following project completion, though timelines and execution risks mean buyers should factor in uncertainty.
You'll find our latest property market analysis about Canary Islands here.
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.
Which Areas in Canary Islands Should I Avoid as a Property Investor?
Which neighborhoods in Canary Islands with lots of problems I should avoid and why?
The neighborhoods in the Canary Islands that present significant challenges for property investors are ultra-concentrated tourist zones now facing regulatory crackdowns, inland car-dependent areas with thin resale markets, and older buildings in coastal areas with high community fees due to salt corrosion maintenance.
Here are the main problems affecting specific types of areas in the Canary Islands:
- La Oliva municipality (Fuerteventura): 57% of the island's vacation rentals concentrated in one area creates extreme regulatory and demand-shock exposure.
- San Bartolome de Tirajana (Gran Canaria): new vacation rental licenses frozen for five years, reducing investment flexibility for unlicensed properties.
- Inland municipalities like Ingenio or Icod de los Vinos: limited buyer pool for resale means longer exit timelines and potential discounts.
- Older coastal apartment blocks (various locations): community fees of 200 to 500 euros monthly can erode rental yields significantly.
For these areas in the Canary Islands to become viable investment options, you would need to see either a lifting of the vacation rental moratorium (unlikely before 2030), significant improvements in public transport connecting inland areas to employment centers, or building renovations that reduce ongoing maintenance costs.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Canary Islands.
Which areas in Canary Islands have stagnant or declining property prices as of 2026?
As of early 2026, the areas in the Canary Islands showing stagnant or slightly declining property prices include Vegueta (the historic sub-district within Vegueta-Triana in Las Palmas), certain inland municipalities in northern Gran Canaria, and some secondary districts in Santa Cruz de Tenerife like Suroeste.
These stagnant or declining areas in the Canary Islands have experienced flat to slightly negative year-on-year price changes, with Vegueta specifically showing around negative 0.6% in late 2025 while its neighboring sub-district Triana grew by over 15%.
Here are the main underlying causes of price stagnation or decline in these Canary Islands areas:
- Vegueta (Las Palmas): older building stock requiring renovation plus stricter heritage regulations limiting modernization potential.
- Suroeste (Santa Cruz): peripheral location with weaker transport links and less walkability compared to Centro-Ifara.
- Northern inland Gran Canaria municipalities: population decline as younger residents move to coastal job centers, reducing local buyer demand.
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.
Which Areas in Canary Islands Have the Best Long-Term Appreciation Potential?
Which areas in Canary Islands have historically appreciated the most recently?
The areas in the Canary Islands that have historically appreciated the most over recent years are Triana (Las Palmas de Gran Canaria), Santa Catalina-Canteras (Las Palmas de Gran Canaria), Puerto-Canteras overall (Las Palmas de Gran Canaria), and Costa Adeje (southern Tenerife).
Here are the approximate appreciation figures for these top-performing Canary Islands areas:
- Triana (Las Palmas): approximately 15.8% year-on-year growth as of November 2025, the strongest district-level gain in Las Palmas.
- Santa Catalina-Canteras (Las Palmas): approximately 10.9% year-on-year growth as of December 2025 at already-premium price levels.
- Puerto-Canteras overall (Las Palmas): approximately 9.8% year-on-year growth as of December 2025.
- Costa Adeje (Tenerife): luxury segment has seen 40% to 60% appreciation since 2020 in prime beachfront properties.
The main driver behind above-average appreciation in these Canary Islands areas is a combination of constrained supply (limited buildable coastal land and heritage protections), diversified demand (locals, remote workers, retirees, and tourists all competing for the same properties), and year-round livability that supports both rental income and owner-occupancy.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Canary Islands.
Which neighborhoods in Canary Islands are expected to see price growth in coming years?
The neighborhoods in the Canary Islands expected to see the strongest price growth in coming years are Guanarteme and Santa Catalina-Canteras (Las Palmas de Gran Canaria), Centro-Ifara and La Salud-La Salle (Santa Cruz de Tenerife), and nodes along the planned Tenerife South railway corridor like Granadilla de Abona and San Isidro.
Here are the projected growth indicators for these high-potential Canary Islands neighborhoods:
- Guanarteme (Las Palmas): continued 6% to 10% annual growth expected due to remote worker demand and limited new supply.
- Santa Catalina-Canteras (Las Palmas): 5% to 8% annual growth expected as prime beachfront scarcity intensifies.
- Centro-Ifara (Santa Cruz): 4% to 7% annual growth expected tied to capital-city employment stability.
- Granadilla de Abona corridor (Tenerife): potential 10% to 15% uplift if and when the rail project advances, though timeline uncertainty is significant.
The single most important catalyst expected to drive future price growth in these Canary Islands neighborhoods is the ongoing structural undersupply of housing, with limited new construction due to environmental restrictions and slow permitting meeting sustained demand from both local population growth and continued international migration to the 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 Do Locals and Expats Really Think About Different Areas in Canary Islands?
Which areas in Canary Islands do local residents consider the most desirable to live?
The areas in the Canary Islands that local residents consider most desirable to live are Santa Catalina-Canteras and Guanarteme in Las Palmas de Gran Canaria, Centro-Ifara in Santa Cruz de Tenerife, and Triana in the historic district of Las Palmas.
Here is what makes each of these areas most desirable to locals in the Canary Islands:
- Santa Catalina-Canteras (Las Palmas): direct access to Las Canteras beach combined with urban amenities like shops and restaurants.
- Guanarteme (Las Palmas): trendy neighborhood feel with strong cafe culture and proximity to both beach and city services.
- Centro-Ifara (Santa Cruz): walkability to government offices, cultural venues, and traditional markets valued by established families.
- Triana (Las Palmas): historic pedestrian streets with heritage architecture and a strong sense of neighborhood identity.
These locally-preferred areas in the Canary Islands tend to attract middle-class professionals, established families, and retirees who prioritize day-to-day convenience over investment returns.
Local preferences in the Canary Islands often align with what foreign investors target in terms of location quality, but locals place more emphasis on schools, healthcare access, and public transport rather than rental yield potential or short-term rental income.
Which neighborhoods in Canary Islands have the best reputation among expat communities?
The neighborhoods in the Canary Islands with the best reputation among expat communities are Guanarteme and Santa Catalina-Canteras in Las Palmas de Gran Canaria, Costa Adeje and La Caleta in southern Tenerife, Playa Blanca in Lanzarote, and Puerto del Carmen in Lanzarote.
Here is why expats prefer these neighborhoods over others in the Canary Islands:
- Guanarteme and Santa Catalina-Canteras (Las Palmas): walkable urban lifestyle with coworking spaces, international restaurants, and beach access ideal for remote workers.
- Costa Adeje (Tenerife): upscale resort amenities, English-speaking services, and established expat social networks.
- Playa Blanca and Puerto del Carmen (Lanzarote): established British and German communities with familiar shops, healthcare, and social clubs.
The expat profile most commonly found in these popular Canary Islands neighborhoods divides into two main groups: younger digital nomads and remote workers (ages 25 to 45) concentrated in Las Palmas, and older retirees (ages 55 and above) concentrated in the southern Tenerife and Lanzarote resort areas.
Which areas in Canary Islands do locals say are overhyped by foreign buyers?
The areas in the Canary Islands that locals commonly say are overhyped by foreign buyers are the major resort corridors of Costa Adeje and Playa de las Americas in Tenerife, Maspalomas and Playa del Ingles in Gran Canaria, and Corralejo in Fuerteventura.
Here is why locals believe these areas in the Canary Islands are overvalued or overhyped:
- Costa Adeje and Playa de las Americas (Tenerife): prices inflated by tourist demand for properties locals consider generic and lacking authentic Canarian character.
- Maspalomas and Playa del Ingles (Gran Canaria): over-commercialized with aging apartment blocks that locals see as holiday ghettos rather than real neighborhoods.
- Corralejo (Fuerteventura): once a fishing village now dominated by tourist infrastructure with limited year-round community life.
What foreign buyers typically see in these areas that locals do not value as highly is the combination of beach proximity, established tourism infrastructure, and perceived rental income potential, whereas locals often prefer neighborhoods with stronger community identity, local shops, and year-round neighbors rather than seasonal tourists.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Canary Islands.
Which areas in Canary Islands are considered boring or undesirable by residents?
The areas in the Canary Islands that residents commonly consider boring or undesirable are inland car-dependent municipalities far from the coast, industrial zones near ports, and some older suburban developments with limited services.
Here is why residents find these specific types of areas in the Canary Islands boring or undesirable:
- Inland municipalities like Ingenio or Arafo: lack of beaches, nightlife, and restaurants makes them feel disconnected from island lifestyle.
- Port-adjacent industrial zones: noise, truck traffic, and lack of green spaces create an unpleasant living environment.
- 1970s-era suburban blocks in peripheral areas: aging infrastructure, limited parking, and few local amenities compared to newer developments.
Don't lose money on your property in Canary Islands
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
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 |
|---|---|---|
| INE (Spain's National Statistics Institute) | Official government source for Spain's House Price Index. | We used it to anchor the big-picture price growth context for the Canary Islands heading into 2026. We cross-checked local pricing against this official trend. |
| ISTAC (Canary Islands Statistics Institute) | Official statistics body for the Canary Islands regional government. | We used it to confirm how Canarias is evolving versus the Spain-wide index. We relied on it as official ground truth for early-2026 market conditions. |
| Idealista | Spain's largest property portal with transparent, regularly updated district-level data. | We used it for granular prices and rents by municipality and district. We computed gross yields by pairing their rent and sale series for the same areas. |
| Fotocasa | Major Spanish property portal with long-running price indices. | We used it to verify regional price growth figures and compare against Idealista. We referenced their November 2025 report showing record price levels. |
| Promotur Turismo de Canarias | Canary tourism research unit using ISTAC accommodation survey data. | We used it to quantify short-term rental scale, ADR, and concentration by municipality. We identified oversaturation risk areas using their supply distribution data. |
| BOE (Spain's Official Gazette) | Ultimate legal source for Spanish legislation and regulations. | We used it to verify the legal status of vacation rental regulations and residency rules. We relied on it for what the law actually says rather than media summaries. |
| Agencia Tributaria (AEAT) | Spain's national tax authority and primary reference for non-resident taxation. | We used it to explain what taxes apply when foreign owners rent out Canary property. We framed net versus gross yield caveats based on their guidance. |
| Agencia Tributaria Canaria (ATC) | Official tax authority for the Canary Islands with IGIC-specific guidance. | We used it to anchor the Canary-specific purchase and tax logic. We avoided generic Spain advice that doesn't fit the islands' unique tax system. |
| Aena | Spain's airport operator with primary-source investment announcements. | We used it to validate the DORA III investment cycle for Canary airports. We treated their press releases as the official reference for infrastructure plans. |
| Guaguas Municipales | Official operator of the MetroGuagua BRT project in Las Palmas. | We used it to verify the BRT corridor details and urban transformation scope. We treated it as the process authority for this specific infrastructure project. |
| Colegio de Registradores | Spain's property registry system and formal record of ownership. | We used it to explain what foreign buyers should verify before purchasing. We treated it as the process authority for title and lien verification. |
Get the full checklist for your due diligence in Canary Islands
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.