New and used homes in the Canary Islands are 16.7% pricier year ago

Balearic Islands and Canary Islands prices are about 20% above the 2007‑2008 housing bubble peaks and 77% above post‑crisis lows.

The new and used housing market in the Balearic and Canary Islands recorded a year‑on‑year price increase of 16.7% in September, according to Tinsa’s monthly IMIE Local Markets report.

• In the island territories, September’s figures are more than 20% above the maximum levels reached in 2007‑2008 and 77% above the post‑crisis minima.
• Across Spain, the average price of new and used homes rose 12.3% year‑on‑year in September, marking a 1.1% acceleration compared with the previous month.
• This puts the annual growth for Q3 2025 at 11.9%. In September alone, nominal price growth ranged from 8.6% to 16.7%, while real terms (adjusted for inflation) varied between 5.6% and 13.4%.

“Residential prices have continued to grow above inflation,” says Cristina Arias, director of Tinsa’s research department. “All areas saw nominal year‑on‑year growth exceeding 10%, except for interior municipalities.”

The strongest gains occurred in the island regions, where the average price sits about 20% above the 2007 bubble peak in nominal terms, yet 14% below that level when inflation is taken into account. Capital cities and large urban centers remain below those historic highs.

“The price increase is starting to show up in the theoretical purchase‑effort ratio,” Arias adds. “After several quarters of decline, this ratio is rising again, while residential demand stays high—near record levels—thanks to moderate mortgage costs and household savings rates that are above historical averages.”

Despite the upward trend in construction permits, Arias warns that housing supply is still insufficient to ease price pressures, which have nearly doubled (up about 60%) since the post‑crisis lows.