Canary Islands Home Prices Surge 21% in the Past Year
Even in Spain’s major capitals, current housing prices are still below the 2007 peaks, but in the Canary and Balearic Islands buying a home is now more expensive than during the previous boom (+19%). Across Spain, housing prices have risen 67% over the past decade and 88% in the island territories since the 2014 lows.
The Canary Islands, together with the Balearics, recorded a 21.6% year‑on‑year increase, the highest in the country. The islands continue to face the greatest pressure on the residential market, as shown by price comparisons with the rest of Spain and even with the major cities.
Prices in the Spanish Archipelagos Exceed the 2007 Pre‑Crisis Peaks
Housing Prices Up 67% in Spain Since the Crisis
Nationwide, the average home value has climbed 67.2% from the post‑crisis trough around 2014, yet it remains 5.6% below the 2007 maximum.
A similar trend is seen in capitals and large cities, where prices have risen 76.5% from their lows. However, in metropolitan areas these prices are still 3.9% under the boom‑era peak, unlike the Canary Islands.
In the Islands, Housing Is Up 88.5% from Lows and 19.3% Above Peaks
The latest Spanish Real Estate Market Index (IMIE) report by Tinsa shows that in the Canary and Balearic Islands, home prices have increased 88.5% since the post‑crisis lows and are now 19.3% above the highs reached during the previous upward cycle. This makes the islands the only major region where the average price already exceeds the nominal 2007 levels.
The report notes that this momentum remains strong: between December and January, the average island price rose 2.6% month‑on‑month, the largest monthly gain among all regions analyzed. The 21.6% annual rise contrasts with other areas where prices are still climbing but have not yet reached the previous cycle’s peaks.
Supply‑Demand Imbalance
Tinsa’s analysis highlights that the price surge is closely linked to a severe supply‑demand imbalance in the main tourist and employment hubs, a problem especially acute in the islands. Contributing factors include:
- Demographic growth since 2021
- Robust employment performance
- Insufficient new construction to accommodate the rise in households
Housing Prices With and Without Inflation
The report also reminds that, although the Canary Islands now surpass the boom‑era nominal peaks, real terms (adjusted for inflation) the average price is still about 16% below the 2007 level.
Nevertheless, this nuance does not soften the worsening affordability situation. The IMIE indicates that in January the average price of new and existing homes showed a +0.9% monthly change and a +14.4% annual change, representing a +11.7% increase over inflation in the past year.
The Spanish Real Estate Market Index (IMIE) is a reference indicator measuring housing price trends in Spain, compiled by the appraisal firm Tinsa.